THE value of Scotch whisky exports tumbled by 3.6 per cent to £2.57 billion in the first half of the year, as volumes tumbled by 20% to the equivalent of 630 million 70cl bottles.

The Scotch Whisky Association, which published the figures yesterday, said exports had held steady compared with the first half of 2022, when the industry posted record exports as markets grew and restocked following the pandemic.

First-half figures show the US retained its position as the industry’s most valuable export destination, as the value of exports to the country dropped by 5.1% to £437m.

France reclaimed its title as the largest export destination by volume, despite the volume of exports dropping by 12.6% to 88 million bottles; the value of exports to France climbed by 4% to £235m, making it the sector’s second most valuable market after the US.

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The SWA noted that India remains a high-volume market for Scotch whisky, with the equivalent of 72 million bottles exports to the nation in the first half of 2023. It pressed home what it sees as the benefits of the UK striking a free-trade agreement with India including the removal of a 150% import tariff that it said could see the value of Scotch exports to the market grow to more than £1bn withing five years.

Mark Kent, chief executive of the SWA, said: “2022 was an exceptional year for Scotch whisky exports, breaking records in both value and volume. So, at the half-way point of 2023, it is encouraging that the industry is keeping pace with export value, continuing to deliver significant economic growth through production and investment in Scotland and across the UK.

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“Around the world, we continue to see the same trend – consumers drinking less overall and switching to higher quality spirits like Scotch whisky. Premiumisation in the spirits category didn’t start during Covid-19, but the pandemic certainly accelerated the trend, and it remains the case that consumers are trading up, enjoying premium spirits, and consuming fewer units of alcohol. Scotch whisky remains well placed to benefit from this shift.

“But the success of the Scotch whisky cannot be taken for granted. The recent double-digit tax hike on Scotch whisky in the UK, the largest in 40 years, and the deepening of the competitive disadvantage faced by distillers versus other alcohol categories was a blow to the industry.”

“The future potential growth of the industry, in terms of exports, job creation and investment across Scotland and our UK supply chain, is dependent on working in partnership with government. Growth at home and abroad, coupled with a supportive domestic regulatory environment, is also key to driving forward our sustainability strategy and achieving net zero.”