Scotch Whisky boosts UK economy by £7.1bn

The contribution of the Scotch Whisky industry to the UK economy reached £7.1 billion in 2022.

A new report by the Scotch Whisky Association (SWA) also reveals the industry supports 66,000 jobs across the UK, of which 41,000 are in Scotland. The Scotch Whisky industry is now responsible for generating £3 in every £100 of Scotland’s total Gross Value Added (GVA), and is the second most productive sector in Scotland, ranked just behind energy including renewables.

Scotch whisky companies have continued to invest to drive growth, employment and productivity despite domestic and international challenges. However, the sector is now warning that while there is room for further growth, Scotch whisky continues to face multiple barriers, including the highest spirits duty rate in the G7, key infrastructure in Scotland in need of investment, and trade deals - including with India – still to be finalised. These challenges combined with rapidly increasing competition from premium spirits in global markets puts future investment, growth and jobs at risk without government support.

Mark Kent, Chief Executive of the SWA, said, “The Scotch Whisky industry has once again proven its economic significance to the UK domestically and on the world stage, and these figures highlight the importance of backing a key sector for productivity, exports and employment.

“The past five years have been turbulent for our sector, as we faced retaliatory tariffs in the United States, in addition to the global pandemic and the knock-on economic pressures. The Scotch Whisky industry has remained resilient, with capital investment directed towards fulfilling our collective sustainability ambitions, creating world-class visitor attractions, and building more distilleries that will help boost jobs and growth.

“Ahead of the UK Spring Budget on 6 March and this year’s General Election, it is vital that the industry is supported by government so that businesses can continue to invest in the UK economy.”

The report found that 75% of the total GVA of the Scotch Whisky industry is generated in Scotland, equal to £5.3bn annually – helped by legislation that requires all Scotch Whisky to be distilled and matured for at least three years in Scotland, and all Single Malt Scotch whisky to be bottled in Scotland.

The report also found that the industry performs a crucial role in driving productivity across Scotland. The manufacturing of beverages in Scotland – dominated by Scotch – produces £273,000 GVA per employee. Comparatively, the industry is second only to the energy sector (including renewables) at £279,000 per head (in 2019).