Despite 2022 being a year marred by war, economic turmoil and ongoing supply chain issues, the scotch whisky not only persevered but thrived, with global exports reaching an all time high of £6 billion in value.
The year marked a monumental shift in the market, as India overtook France to become the largest scotch whisky market by volume. Reaching a staggering 219 million 70cL bottles, which is a 60% rise from 2021. Despite this huge growth, scotch still only accounts for 2% of the entire Indian whisky market, affording the category plenty more room to grow. Of particular note is the upcoming India-UK trade deal which could result in a further growth of £1 billion for scotch whisky exports. You can find out more about the possibilities of the Indian market and the potential of the India - UK trade deal in our previous articles.
As a whole the Asia-Pacific region has overtaken the European Union to become the largest for scotch whisky, boosted by the post-pandemic reopening's that have been taking place. In countries such as Singapore (up 50%), Taiwan (up 39%), Japan (up 32%) and China (up 18%) the renewed travel retail market has helped to boost these figures as tourist numbers flowing in and out of these countries increase to pre-pandemic levels.
Meanwhile the solid growth in Europe gives hope that the scotch industry is not suffering as gravely from the long term effects of Brexit as many had feared. France (26%), Germany (36%) and Spain’s (46%) rise in total export value all demonstrate scotch whisky’s enduring popularity within the European Union.
The US still remains the largest market for scotch whisky in terms of value, having risen by 33% since 2021, reaching a grand total of £1 billion worth of exports. The effects of the tariffs imposed by the previous administration has been largely undone, although the market has seen a recent shift towards other locally produced spirits such as Mezcal and Tequila. So far though these new spirits are unlikely to prove a competitor to scotch whisky’s market niche.
Minister of State at the Department for Business and Trade, Nigel Huddleston:
“Scotch whisky is one of the UK’s great exporting success stories, contributing billions of pounds to the economy and supporting thousands of jobs, so I’m pleased to see these export figures showing a growing global demand.
“It’s essential we continue to support the industry as it expands into new markets thanks to our new trade agreements around the world such as CPTPP and in India. As we set our sights on £1 trillion exports by 2030, I’m confident we can see scotch whisky go from strength to strength in the years ahead.”
If you wish to find out more about how whisky exports impact the whisky investment market, get in touch to find out more.