The Scotch Whisky Association (SWA) has released figures for 2025 that show global exports of Scotch Whisky falling by -0.6% in value and by -4.3% in volume, as the industry navigates significant challenges across multiple markets.  

Exports were valued at £5.36bn in 2025, with the equivalent of 1.3 billion bottles exported around the world: 43 per second. Exports of Scotch Whisky, which previously totalled £5.4 billion in 2024, have fallen in volume and value as the impact of international tariffs, increased cost of doing business in the UK, and softening consumer demand have hit producers and the supply chain.  

The industry’s most valuable export market, the United States, has seen export volume fall by -15% following the implementation of the 10% tariff in April 2025.

In 2025, full year exports to the US fell by -4% in value to £933 million. Volume fell more significantly, down -9.2% on the previous year to the equivalent of 120m bottles. The Scotch Whisky Association said the acute effect of the 10% tariff was clear with a -7% drop in export value and a -15% fall in volume between May and December 2025.

Tariff pressure on the Scotch Whisky industry has come into sharper focus with the potential rise to 35% in July this year: the sector is approaching the end of a five-year suspension of the 25% single malt tariff which cost Scotch whisky producers over £600 million in lost exports between 2019 and 2021.

Along with pressures in the United States, the SWA has warned that the potential gains from recent deals to reduce tariffs in India and China will not be realised while the domestic tax and regulatory burden continues to increase to unsustainable levels.

With some distilleries halting or reducing production and jobs being lost in the industry and wider supply chain, the industry has warned that more businesses will close their doors for good during 2026.

SWA Chief Executive Mark Kent said: “The international trading environment continues to be challenging for Scotch Whisky producers, with tariffs and geo-political tension causing significant turbulence in some key markets. At home, the industry faces soaring costs, from year-on-year duty increases to new packaging taxes. Our member companies tell us they are under strain not felt for decades, and that support is vital to weather the storm. 

“While global volatility has become the norm, it has now been joined by an increasingly uncompetitive domestic tax and regulatory environment. The spirits duty increase earlier this month, totalling more than 17% in three years, has clearly impacted jobs, investment potential and economic growth. 

“It’s said that form is temporary, but class is permanent. Scotch Whisky is an iconic product which appeals around the world, and the industry’s great resilience means that our long-term potential for continued growth is clear.  

“In order to realise this future potential, finalisation of a deal to return zero-tariff trade to the US, vigorously pursuing trade deals with Thailand, Mercosur and Gulf Cooperation Council (GCC) countries, and no further tax increases in the UK must be immediate priorities. It is within both the UK and Scottish Governments’ power to facilitate the supportive environment producers need, boosting and sustaining growth for Scotch Whisky and the wider economy, and we stand ready to work in partnership to achieve that aim.”     

Asia Pacific hit hard

Asia Pacific, previously the Scotch Whisky sector’s most valuable regional market, has seen a fall of -8.3% in value, with export volume remaining relatively steady (+0.08%)  

The Indian market has continued to grow, retaining its position as the industry’s biggest market by volume, and becoming its 3rd largest by value, with producers now looking ahead to the ratification of the UK-India FTA later in 2026 to further boost exports and enable long term market access opportunities.

However, the industry has echoed findings in the recent report from the House of Lords, saying that in the short term, India’s future growth potential will not be enough to counter the widespread challenges that Scotch whisky exports are facing.  

APAC had seen significant growth over the past decade, but markets including China, Singapore, and Thailand saw total export value decrease during 2025. Last month China’s tariff on whisky imports was halved to 5%, which the industry has said will help to re-energise exports to the market in 2026 and beyond.  

Financial distress for one in five distilleries

Data from restructuring firm BTG has found one in five Scottish distilleries are facing financial distress.

BTG Scotland Managing Partner Thomas McKay said: “Distilleries in Scotland, where the majority of the UK’s whisky production is based, are facing a perfect storm of lowering demand, rising production costs and increased tariffs in key markets, factors that have already cost numerous brands their businesses over recent months.

“The dynamics of these market forces are such that they are impacting otherwise healthy businesses that have used their cash reserves to stay afloat, and now need to restructure to survive this period of drastic downturn.”