Scotch whisky exports increased in value by 3.4% in the first half of the year to £1.8 billion, boosted by the continuing growth of single malts across the globe, including the US, the industry’s largest market.
This growth benefits the entire UK economy and its export performance. Scotch remains Britain’s biggest food and drink export, making up almost a fifth of the sector’s overseas shipments.
The analysis of government figures published by the Scotch Whisky Association (SWA) today shows consumers are continuing to buy more single malts, with exports up 7% to £479 million in the first six months of the year. Single malts now make up more than a quarter of the value of all Scotch shipped overseas.
This trend was clear in the US where total Scotch exports were up 8.6% to £388 million and single malts jumped 14% to £123 million.
There was also a return to growth in China (up 45% to £27 million) and exports to Japan grew by 19% to £43 million.
The European Union remains the biggest regional destination for Scotch, with the value of exports up 4% to £559 million, almost a third of the total.
However, the volume of Scotch shipped overseas during the first half was down 2% to 528 million bottles. The lower volume and higher value is partly as result of the shift to single malts.
Some markets declined in the face of economic and political problems, such as Brazil where the value of Scotch exports fell 20% to £22 million.
The SWA argues that a strong domestic market is required to underpin the industry’s success and that chancellor Philip Hammond could help next month by cutting tax on an average bottle of Scotch from 80%.
In the first half of 2017, 36.7 million bottles were released for sale, down from 37.7 million last year.
The SWA said that the shrink is a direct result of Hammond’s decision to increase spirits duty in his spring budget by 3.9%.
SWA chief executive Karen Betts said: “More and more consumers around the world are seeking out the fabulous range of single malts. It is good to see demand for Scotch increasing in a diverse range of mature and emerging markets around the world.
“But the figures mask more concerning underlying trends. The value of exports is up but the volume is down. With the changes Brexit will bring to the way the industry operates and trades, we need the support of the UK government at home and overseas if we are to grasp the opportunities and keep this international success story going.
“Overseas demand for our quality product requires investment by the industry in the UK and that needs government support. A strong domestic platform for growth is vital and the chancellor could take a step in the right direction in next month’s budget by cutting the tax on an average priced bottle of Scotch from the staggering level of 80%.”
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