US spirits exports reach record high in 2023

The landmark numbers were driven by American whiskey sales, which benefitted from the EU’s tariff suspension.

The Distilled Spirits Council of the US (Discus) released its latest American Spirits Export Report and found US spirits exports totalled US$2.2 billion in 2023, up 8% from the previous year.

American whiskey accounted for 63% of all US spirits exports, up 9% from 2022, reaching a record US$1.4bn.

“This latest report shows that US exports are continuing to rebuild after plummeting from the devastating retaliatory tariffs on American spirits imposed by the EU and UK,” Rob Maron, Discus vice president of international trade, said.

“The tariffs imposed from 2018-2021 as part of two separate disputes between the US, EU and UK have since been suspended or removed, presenting US spirits producers with an opportunity to recapture lost market share in some of the US’ largest export markets.”

In December 2023, the EU announced it would further suspend its tariffs on American whiskey until 31 March 2025. Prior to the announcement, there was anxiety among US distillers as the retaliatory tariffs, which stem from steel and aluminium trade disputes, were set to double to 50%. Especially for smaller craft distillers, even the threat of increased tariffs made entering international markets more challenging, as distributors weighed the risks of taking them on.

“We urge the Biden administration to continue working to secure the permanent removal of these tariffs,” Maron said. “The EU’s 15-month tariff suspension is welcome news, but the uncertainty for the future continues to hold craft distillers back from exporting their spirits.”

Over the past two decades, global US spirits exports have increased by 280%. The report attributes this long-term growth to trade agreements, the tariff suspension, hospitality returning, and a shift from consumers towards premium and super-premium spirits.

Specifically, American whiskey exports to the EU have grown by more than 60% over the past two years, growing from US$439 million to US$705m. The EU remains the largest market for all US spirits exports, growing by 24% from the previous year to US$883m. After the EU, the biggest US spirits export markets were Canada (US$262m), Mexico (US$139m), Australia (US$138m), and the United Kingdom (US$129m).

The top markets for American whiskey after the EU included Australia (US$121m), Japan (US$106m), the UK (US$86m) and Canada (US$76m). While American whiskey accounted for 63% of all spirits exports in value it made up just 34% in volume.

Distilled spirits were exported from 45 states in 2023, with Tennessee (US$983m) Kentucky (US$505m), and Florida ($338m) leading the way. Texas (US$180m), Illinois (US$118m), Indiana (US$72m), California (US$65m), Arkansas (US$57m), New York (US$50m) and Georgia (US$27m) rounding out the top 10.