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Scotch boosts UK drinks exports
UK drinks exports rose by double digits in the 12 months to 31 July 2023, led by demand for Scotch whisky in European markets.
Drinks exports grew by 13% to £9.4bn (US$£11.8bn) in the year to 31 July 2023, up from £8.3 billion (US$10.4bn) in the previous 12-month period, figures from chartered accountant agency Hazlewoods revealed.
Hazlewoods said spirits are playing a key role in rising drinks exports, led by whisky and gin.
Scotch whisky was the UK’s single biggest food and drink export by value.
Hazlewoods cited continued demand for Scotch whisky from EU markets including France, Germany, Spain and Poland, which are among the top 10 export markets by volume.
Total Scotch exports to all EU countries reached close to £1.6bn (US$£2bn) in the past year.
Exports to non-EU countries have also grown. In 2022, the US was the biggest export market of Scotch whisky by value, with figures exceeding £1bn (US$£1.2bn).
Exports to India and Singapore also increased sharply in 2022, with the former becoming the Scotch whisky industry’s largest global market by volume.
There are ongoing negotiations regarding India’s 150% tariff on Scotch imports, which could see exports rise if the tariff is cut.
Rebecca Copping, associate partner at Hazlewoods, said: “British heritage brands have successfully placed themselves as a luxury in the international drinks market.
“Despite volatility in the economy and high interest rates around much of the globe, consumer spend on luxury goods has held up well, although sales growth of luxury goods is slowing. This post-Covid boom in luxury goods sales certainly had a hand in increasing UK drinks exports.
“Now the industry is focused on long-term growth, reaching bigger, untapped markets. The UK government can support that by delivering trade agreements that lower barriers to expansion.
“While whisky is playing a huge role in the export increase, this is also a success story for UK drinks brands that focus on gin and other spirits. It’s the heritage image and luxury branding that draws in a lot of consumers, especially those in growing markets like India and Singapore.”