The contribution of the Scotch whisky industry to the UK economy reached £7.1bn in 2022, according to a new report by the Scotch Whisky Association (SWA).
The report also found that the industry supports 66,000 jobs across the UK – 41,000 in Scotland – and is now responsible for generating £3 in every £100 of Scotland’s total Gross Value Added (GVA).
It also revealed 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 to be distilled and matured for at least three years in Scotland, and all Single Malt to be bottled in Scotland.
Furthermore, 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).
Despite these findings, 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 and the state of key infrastructure in Scotland.
Mark Kent, chief executive of the SWA, said: “The past five years have been turbulent for our sector. 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.”
Welcoming the report, Scottish Secretary Alister Jack said the sector’s contribution to the economy was of “vital importance” to Scotland and the whole of the UK.
“The UK Government wholeheartedly supports the industry,” he said.
Wellbeing Economy Secretary Neil Gray added: “The Scotch Whisky industry is extremely valuable to the Scottish economy in terms of production and exports and increasingly also for tourism and hospitality. It supports thousands of jobs – including in rural areas.
“The Scottish Government will continue to work with the whisky sector to drive further growth and success.”
