Scotch whisky exports on road to recovery after growth in 2021

By James Bayley

Published: 14 February, 2022

Global exports of Scotch whisky grew to £4.51bn during 2021, according to figures released today by the Scotch Whisky Association (SWA), as the industry continues to recover from the impact of the Covid-19 pandemic and US tariffs.

In 2021, the value of Scotch Whisky exports was up 19% by value to £4.51bn. The number of 70cl bottles exported also grew by 21% to the equivalent of 1.38bn.

In particular, growth in 2021 was driven by consumers in Asia Pacific and Latin America, with value increases of 21% and 71%, respectively. Key emerging markets for Scotch whisky such as India, Brazil, and China grew strongly. Exports grew by 8% in the United States – the industry’s largest market by value – despite the 25% tariff on single malt Scotch in the first quarter. Exports to the European Union grew by 8% since the UK left the transition period in the first year.

In March 2021 the US, EU, and UK agreed to end tariffs for four months and a cooperative framework then followed in June 2021, confirming that tariffs for single malt Scotch and Irish whisky would be suspended for five years. This saw the end to tariffs on Scotch whisky exports to the US.

A 25% tariff had been imposed on single malt Scotch whisky in October 2019 centred on an ongoing trade dispute concerning Airbus and Boeing. However, tariffs on American Bourbons and whiskies were not part of the agreement.

Despite the return to growth in 2021, the value of Scotch whisky exports has not recovered to pre-pandemic levels, with exports remaining 8% lower than 2019.

Commenting on the figures, chief executive of the Scotch Whisky Association Mark Kent said: “The global footprint of the industry in 2021 is a clear sign that the Scotch Whisky industry is on the road to recovery.

“Value and volume are both up as consumers return to bars and restaurants, people return to travel and tourism, and we all return to a degree of normality after a period of enormous uncertainty for consumers and business.

“Scotch Whisky growth in global markets means more jobs and investment across Scotland and the UK supply chain.

“The industry has continued to invest in its production sites, tourist attractions and workforce to ensure that Scotch Whisky remains at the heart of a dynamic international spirits market and attracts new consumers around the world.”

Kent added: “But this is no time for complacency. The industry continues to face global challenges, including ongoing trade disruption, growing supply chain costs and inflationary pressures, and undoubtedly there is some road to run before exports return to pre-pandemic levels.

“The UK and Scottish governments should do all they can to support the industry's continued recovery by making the most of global opportunities, including the ongoing UK-India trade talks, ensuring fairness in the UK duty system, and investing in a more sustainable future as the industry works to reach net-zero by 2040.”

The largest export destinations for Scotch Whisky (defined by value) in 2021 were led by the USA at £790m +8.4% on 2020, followed by France at £387m (+2.8%) and Taiwan at £226m +24.3%. The rest of the top ten were comprised of Singapore, China, Latvia, Germany, India and Spain in tenth place.

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