Scotch growth in US and Europe offsets Asia slowdown

Surging Scotch exports to the US, France and Spain have allowed the industry to compensate for Asian declines, according to new data.

SWA figures show that Scotch grew in both value and volume despite dip in Asian markets

Figures released by the Scotch Whisky Association (SWA) show that the Scotch exports grew in both value and volume from January to June this year, defying a predicted downturn in the European market.

The value of exports increased by 11% to almost £2 billion from £1.78 billion in the first half of 2012, while in terms of volume, some 563 million bottles of Scotch were exported, a 9% increase from the 50 million bottles exported during the same period last year.

The US remains the biggest market by value, increasing by 29% to £391 million in the first half of 2012, followed by France, which saw exports grow by 6% to £199m, and Singapore, which jumped by 19% to £174m – sales attributed to Singapore’s standing as a distribution hub for the Asian market.

The Russian market also grew due to an increase in exports to Germany (28%) and Latvia (6%), while it was noted that direct exports to Poland had reached £20m – almost 10 times the level in 2004.

Exports to China dropped 20% to £25m as the country’s premium spirits market continues to decline, but the SWA said this was somewhat offset by an increase in shipments to Singapore.

Asia suffered several downturns in the market. Taiwan fell 18% in value and 13% in volume, South Korean dipped 9% in value and 5% in volume and Japan dropped 13% in value and Thailand fell 33% in volume.

However, Scotch saw an increase in demand from many emerging economies. While exports to South Africa rose by 19% to £65m, exports to Mexico increases by 67% to £65m, Brazil recorded growth of 42% to reach £49m, Venezuela was up 9% to £46m and Panama grew by 86% to £31m.

Gavin Hewitt, chief executive of the SWA, said: “Demand for Scotch whisky from mature and emerging markets around the world grew strongly in the first half of this year after a slow start to 2012.

“While these figures provide a snapshot of what is happening with exports, the industry is confident this expansion will continue. Significant new investment in the industry in Scotland by Scotch whisky producers reflects the belief that growth will be sustainable.”