Top Scotch whisky export markets

The Scotch Whisky Association has published the details of the world’s biggest Scotch whisky export markets by both volume and value.

The data showed that despite a 5% reduction in volume, Scotch whisky exports increased in value to a record $4.3 billion, which works out at £135 per second, over 2012.

The record value of exports means that Scotch whisky now equates to around one quarter of Britain’s total food and drinks exports.

According to the SWA the fall in volume but increase in value highlights that consumer knowledge about Scotch whisky is increasing around the world and so the demand for single malt and premium blended Scotch is also increasing. Indeed exports of single malt have risen over the last 10 years by 190% from £268m to £778m.

But which countries are driving these huge exports, which are the biggest markets, which are increasing and also which markets are decreasing in size? Click through the following pages to find the answers to these and other Scotch whisky export questions.

We have listed these markets as the top 10 according to value, but have also included volume information.

10 – Mexico

The Mexican market was worth £91.8m in 2012, an increase of 14% on 2011, which was the sixth largest increase within the top 20 markets. In 2011 £80.8m worth of Scotch was exported to Mexico, which meant it was the 12th largest market for that year. Over 2012 Mexico has overtaken Brazil and the United Arab Emirates in volume of exported Scotch. In terms of volume Mexico sits ninth overall with 35.3m, 70cl bottles exported to the country in 2012, this is up 11% from the 32m bottles exported in 2011.

9 – Venezuela

In 2012 £102.2m worth of Scotch was exported to Venezuela, making it the most valuable South American market to the Scotch whisky industry. Whisky boomed in Venezuela in 2012, shooting up 23% from £83.4m in 2011, this was the third largest percentage increase of all markets in 2012. In terms of volume Venezuela is the 11th biggest export market, with a total of 31.7m bottles going to the country, which is a 12% increase on the 28.2m bottles in 2011.

8 – South Korea

Although £135.7m worth of whisky was exported to South Korea in 2012, this actually represents a 7% decrease in the value of this market. In 2011 £142.6m worth of whisky was sent to South Korea, but there is no change in the country’s position in this top 10 as it was also the eighth largest export market in 2011. Volume-wise it is no great surprise that the country has dropped off in 2012, with a 15% decrease, dropping from 31.4m bottles to 26.8m.

7 – South Africa

Generally better known for its wine, South Africa is also the biggest African export market for Scotch whisky. In 2012 South Africa was worth £161.6m, which is actually a small decrease on the previous year. In 2011 South Africa was worth £165.5m, so there was a 2% decrease in 2012. The country has also slipped from the fifth biggest export market to this seventh position. In terms of volume the change in South Africa was much more dramatic, with a 15% decrease from 31.4m bottles in 2011 to 26.8m in 2012.

6 – Taiwan

In spite of a 7% increase in the value of its market Taiwan is still the sixth biggest export market for Scotch, the same position it held in 2011. Reflecting the trend reported in Cognac, as well as by Diageo and Pernod Ricard, Taiwan is part of the overall spirits boom in Asia. In total its export market increased from £155.2m in 2011 to £165.4m, as reported this is a 7% increase. It would also appear that the country is concentrating on premium brands as Taiwan is only ranked as the 15th biggest country by volume. In fact volume sales decreased slightly in 2012, falling by 2% from 22.7m bottles to 22.3m.

5 – Germany

Germany is the only European export market, in this top 10, that recorded growth in the value of its market in 2012. The German export market increased from £149.6m in 2011 to £168.8m in 2012, a 13% boost for whisky in the country. That increase also sees the country move up from being the seventh largest export market in to 2011 to being the fifth largest last year. Volume also increased for Germany, going up 5% from 49.9m bottles in 2011 to 52.5m.

4 – Spain

The financial crisis that is engulfing Spain at the moment is reflected in the huge falls of Scotch whisky in both value and volume. This was a trend highlighted by both Diageo and Pernod Ricard, who reported drops in Southern Europe sales in the second half of last year. Spain saw the largest contraction of all those in the top 20 export markets, falling by a staggering 25%, from £259.2m in 2011 to £195.3m in 2012. Volume also decreased dramatically in 2012, down 20% to 60m bottles in 2012, from 74.8m in 2011.

3 – Singapore

According to the SWA Singapore is a distribution hub for Asia, a market which “continues to grow in importance”. Exports to Singapore increased by 7% last year, up from £317.9m to £339.2m in 2012, reflecting the overall growth throughout Asia. In 2011 Singapore was also the third largest export market in terms of value, a position it keeps this year. In terms of volume Singapore’s increase and the huge decrease recorded by Spain has seen Singapore jump from the fourth biggest market to the third. In 2011, 63.1m bottles of Scotch whisky were exported to Singapore and this increased by 2% to 64.2m in 2012.

2 – France

The figures for whisky exports to France, should come with a caveat, as the SWA reports the “market was distorted by excise tax increases in 2012 which led to a ‘stocking up’ of Scotch Whisky in 2011 before their introduction.” So the value of the French market fell considerably, but it is still the second most valuable market for Scotch whisky. The value fell from £535.4m in 2011 to £434m in 2012, this represents a 19% decrease in the value of exports to France. The volume of Scotch exported to France fell from 205.3m bottles in 2011 to 153.9m bottles in 2012, a drop of 25%.

1 – USA

The US is once again the largest export market for Scotch whisky and 2012 saw bumper growth, with exports breaking through the £700m barrier for the first time. The value of Scotch exports to the US increased by 16%, jumping from £654.9m in 2011 to $758m in 2012. And the SWA expects this to carry on improving, in a statement the group said: “Demand from the USA is expected to increase as consumer confidence grows and many people trade up to premium brands.” This desire for premium whisky is reflected in the fact that despite a big jump in the value of the US export market, volumes sent to the country actually dropped in 2012. In 2011, 130m bottles were sent across the pond, this dropped by 2% in 2012 to 127.5m.

And finally… Eastern European growth

Although Russia does not appear in the top 20 countries for either value or volume of exports, there are still strong indicators that Eastern Europe is an increasingly important market for the industry. The SWA said: “The growth of Scotch Whisky exports in Russia, a market estimated to be worth in the region of £200m, boosted shipments to Latvia and Estonia. Direct exports to Latvia were up 48% to £79 million and to Estonia they were up 28% to £69m. Due to route-to-market networks, much of those exports are shipped onto Russia.”

If the Russian market is indeed worth £200m, this would put it fourth on the overall value list, just ahead of the rapidly fading Spanish market. In terms of volume Estonia was ranked the 19th highest country, with 16.6m bottles exported to the country, and Latvia was not ranked as one of the top 20 countries by volume, despite the huge growth in the value of its market.