The Scotch Whisky industry contributed £7.1bn to the UK economy 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 put future investment, growth, and jobs at risk without government support.

Chief executive of the SWA, Mark Kent, 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 the government so that businesses can continue to invest in the UK economy.”

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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.

NFU Scotland’s combinable crops committee chair, Willie Thomson, an arable farmer from East Lothian said: “NFU Scotland welcomes this report, which highlights the huge and growing contribution that the whisky sector makes to Scotland’s economy.

“Scotland’s most iconic brand, Scotch whisky, is made up of just three ingredients – water, yeast, and cereals – and Scotland’s arable farmers are the cornerstone of the sector. As such, this report could have done more to directly recognise the role of farmers in this success story and the centuries old partnership between distillers and those supplying them with the grain. The success of the Scotch whisky industry is reliant on the success of Scottish cereals growers - and vice versa ¬- and long may it continue for the mutual benefit of both.

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“Barley makes up the lion’s share of Scotland’s cereals production, with the best part of 1 million tonnes of Scottish malting barley providing some 90 per cent or more of the Scotch whisky industry’s annual barley requirements.

“The integrity of this globally renowned brand relies very heavily on the provenance and quality of barley grown in Scotland and the role of farmers should be recognised, not least because of the increasing demands being placed on growers as they assist all parts of the whisky production chain in meeting their requirements around emission reductions and Net Zero commitments.

“This report highlights the huge opportunities for future growth and Scottish farmers very much look forward to being the central part of that journey.”