The Economic Significance of Scotch Whisky

Scotch Whisky is the most traded spirit internationally. It is worth £5 Billion to the British economy and makes up 21% of all UK food and drink exports. In value Scotch Whisky is bigger than the UK’s iron/steel, textiles, shipbuilding, or computer industries. It is around half the size of the UK’s pharmaceuticals or aerospace industries and is one third the size of the entire UK car industry. It is big business!

Viticult-Brochure-pg7.jpg

41

BOTTLES OF 

SCOTCH

EXPORTED 

EVERY SECOND

97% of all the whisky Scotland produces is exported abroad. This equates to 1.2 billion bottles, and demand is constantly rising. But Scotland’s output is already running at full capacity. This is because the amount of whisky a distillery is able to produce is tied directly to how many Copper Stills it has in operation.

Each distillery's Copper Stills are unique to them, and produce characteristics within a whisky which becomes a distillery’s identity. For example, one of oldest Copper Stills in operation belongs to the Bowmore Distillery. It has been in operation since 1779. If they change their Copper Still, they would be changing the 241 year old identity of their whisky. They would be unable to produce the whisky their consumers have come to expect. 

The science of why different Copper Stills produce identifiable characteristics is not fully understood. Although it is widely accepted that shape and size play a significant role. 

The World Just Can’t Get Enough of Our National Drink

Twenty years ago there were fewer than 110 sites in operation around Scotland. Today that number has grown to 134, with around 10 more under construction or planning to open in the coming year.

Whisky has a global appeal unmatched by any other spirit. It is exported to almost every country in the world, and you’d be hard-pressed to find a city where you can’t enjoy a dram of Scotch – from Bogota to Beijing.

We’re also seeing encouraging growth in new and emerging markets, including China, which has seen record growth this year – outstripping its 2019 import total in the first six months of this year alone.

Whisky is now a 500-year-old industry that has seen its fair share of challenges over the centuries.

Government support, both at home and in global markets, will help the Scotch whisky industry to play its full part in the UK’s economic recovery, and to keep investing in the people and places that make our spirit special. Scotch accounts for 21% of all UK food and drink exports and 75% of all Scotland’s food and drink exports.

Extracted from The Press & Journal

The Future of the Scotch Whisky Market

The future of the Scotch Whisky Market looks very promising. The market is predicted to continue to rise over the next 5 years, as it has done historically. This growth is fueled by changing lifestyles, high disposable incomes and an increasingly global demand for premium Scotch Whisky. The chart summarises the growth of the Single Malt Whisky Market in the United States between 2015 and the present day, as well as providing a prediction into the market’s future.

Analysis by the UK government in 2019 concluded that Scotch Whisky exports to the US was the most valuable single market, generating over £1 Billion in revenue, a 12% increase on the previous year. Europe is the largest consumer of Scotch Whisky, generating £1.4 Billion in revenue. 

 

The FTSE 100 listed company Diageo, the world’s largest producer of spirits who owns brands such as Johnny Walker, have seen sales of Scotch Whisky jump by over 50% in the past five years.
 

Viticult-Brochure-pg9.jpg
Viticult-Brochure-pg10.jpg
shutterstock_1401522971_edited_edited_edited.jpg

Whisky Cask Ownership Guide

Since our establishment in 2014 we have witnessed a shift in demand for whisky cask ownership, which over recent years has outperformed the FTSE and the London Property Market.

 

Download our Whisky Cask Ownership Guide to learn more.