The Distilled Spirits Council of the United States (DISCUS) has released its 2024 American Spirits Exports Report, which shows Australia has maintained its position as the second largest market for American whiskey exports.

However, the value of American whiskey exports to Australia dipped almost 7% to $US113 million, down from $US121 million in 2023.

The American spirits industry achieved a record $2.4 billion in 2024, up nearly 10% compared to 2023. The growth in US exports in 2024 was driven by a 39% increase in exports to the EU, which has zero tariffs on spirits imports. Spirits exports to countries outside the EU declined by nearly 10%, which DISCUS said reflected a “softening of the global spirits market”.

The report attributes the surge in exports to the EU to concerns over the potential return of tariffs on American whiskeys in 2025, which were suspended in 2022. Another factor included the uncertainty at East and Gulf Coast ports due to labour negotiations and a brief port strike in the fall.

“US spirits exports hit a new high in 2024, recapturing lost market share since the UK and EU lifted retaliatory tariffs that were applied between 2018-2021 in connection with two trade disputes,” said DISCUS President and CEO Chris Swonger.

“Unfortunately, ongoing trade disputes unrelated to our sector have caused uncertainty, keeping many US distillers on the sidelines and curtailing sales growth. The EU’s recent decision not to reimpose a retaliatory tariff on American whiskies and other US spirits is a positive first step toward getting the US-EU spirits sectors back to zero-for-zero tariffs and untangling spirits from these trade disputes.”

Driven in large part by the EU’s and UK’s retaliatory tariffs, total US spirits and American whiskey exports tumbled by 12% and 18%, respectively, between 2018-2021. American whiskey exports to the EU, the largest American ehiskey export market, plunged 20%, from $552 million to $439 million during the same time.

Since the tariffs were suspended in 2022, American whiskey exports to the EU surged nearly 60%, climbing from $439 million in 2021 to $699 million in 2024.

The report showed that US spirits exports have quintupled since 2000, rising from $478 million in 2000 to more than $2.4 billion in 2024. Growth of US spirits exports is due, in large part, to the US spirits sector having a fair and reciprocal playing field with 51 countries that have provided tariff-free access for US spirits, including the EU, Canada, Mexico, Japan and many others.

Nearly 86% of US spirits exports go to countries that have eliminated tariffs on them. Additionally, approximately 98% of spirits imports originate from countries that have eliminated tariffs on US spirits exports.

Other factors that have driven long-term growth in exports include the shift by consumers in key markets towards premium American spirits, the continued strengthening of the global hospitality sector following the pandemic, and the rise in US distilleries – from less than 100 in 2005 to nearly 3100 today, many of which now export.

Speculation on industry’s future

Swonger stated that the outlook for 2025 US spirits exports is highly unpredictable due to ongoing trade disputes, negotiations and retaliatory tariffs. Canada, the second largest market for US spirits exports, began imposing a 25% tariff on all US spirits on March 13, and most Canadian provinces have removed all US alcohol products from retail stores.

Additionally, US spirits are being hit with a 160% retaliatory tariff in China and a 70% retaliatory tariff by Türkiye.

“We are thankful for President Trump’s early success in securing India’s reduction of its tariff on Bourbon from 150% to 100%,” said Swonger. “It’s our hope that the administration builds on this positive momentum by securing additional tariff reductions in India and reducing trade barriers in other countries.”

Other key findings

• Approximately 50% of US spirits were exported to the EU (totaling $1.2 billion), making it the largest export market.
• The top five markets for US spirits in 2024 were: 1) European Union ($1.2 billion); 2) Canada ($221 million); 3) United Kingdom ($137 million); 4) Australia ($131 million); and 5) Mexico ($126 million).
• American whiskey exports, which accounted for 54% of all US spirits exports, dipped 5.4% to $1.3 billion.
• The top five markets for American whiskies in 2024 were: 1) European Union ($US699 million); 2) Australia ($US113 million); 3) United Kingdom ($US86 million); 4) Japan ($US79 million); and 5) Canada ($US73 million).
• In 2024, exports of cordials and vodka reached new records, with cordials rising by 128% to $367 million and vodka increasing by 82% to $292 million compared to 2023.
• The top 10 states exporting US spirits were: 1) Tennessee ($934 million); 2) Kentucky ($751 million); 3) Texas ($354); 4) Florida ($334 million); 5) Indiana ($142 million); 6) Illinois ($128 million); 7) California ($70 million); 8) Arkansas ($46 million); 9) Maine ($37 million); and New York ($29 million).

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