The Commonwealth Union of Singapore anticipates scotch, whisky, and gin exports to spearhead with double-digits by the latter end of 2023.
Despite harsh economic times for the global landscape, Scotch whisky exports to Singapore soared to new heights in 2023. The UK government claims reports from both governmental and private sector sources indicate that there is a new destination for Scotch and whisky. The reports allege a double-digit climb in whisky imports by the country, putting it in line for an exponential 2024.
Brewery ranging from Scotch to whisky continues to dominate the Singapore market in 2023. Scotch whisky exports to Singapore grew by 31% with over £380 million worth of Scotch exported from the United Kingdom to Singapore over the last year, an increase of 31% (£90 million) in current prices on the previous year. Meanwhile, the category’s exports to Malaysia climbed by 43% to £11m (US$14m).
The government said Singapore is also a major market for the United Kingdom gin industry, with the gin and tonic and Singapore Sling serves driving a 56% (£3m/US$3.8m) increase in UK gin exports over the past year, to the country.
Also read :
World’s oldest Whisky unearthed
The government said sales products from the United Kingdom such as whisky, gin, sparkling wine and chocolate have risen significantly to countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trading bloc.
Singapore has been a stand out success for many exporters from the United Kingdom in 2023. Over the past year, United Kingdom chocolate exports to Singapore have increased by 220% in current prices to over £26 million.
The United Kingdom is formally set to join the bloc this year, which includes 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
Tariffs of around 80 percent will be eliminated on United Kingdom exports of whisky to Malaysia within 10 years, helping the UK to gain a larger share of the market, the government said last year.
Mark Kent, The Scotch Whisky Association’s (SWA) chief executive, said exports of Scotch to the CPTPP bloc hit more than £1.1 billion (US$1.3bn) in 2022.
“The United Kingdom’s accession to CPTPP will open up new opportunities for Scotch whisky and other UK products in key markets in the region, including the phased elimination of Malaysia’s import tariff,” he said.
In 2022, Singapore was the third-biggest export market for Scotch by value. It grew by 50% to £316m (US$399m) in 2022, up from £212m (US$268m) in 2021, according to data from the SWA.
Japan was the ninth-biggest export market by value for Scotch in 2022, up by 32% to £133m (US$168m). It was also the fifth largest by volume, exporting 75m bottles in 2022, which was an increase of 33%.
Director of public affairs for Pernod Ricard UK, Pernod Ricard Global Travel Retail and Chivas Brothers, Jonathan Brenton, added that: “The Pacific Rim is already the world’s most economically dynamic region and five CPTPP members are in the top 20 markets for our Scotch whiskies.
He went on to say that CPTPP would reduce whisky tariffs in Malaysia to zero and will help them to leverage the growing middle class and a trend towards premium products and cocktail culture in other Southeast Asian countries such as Vietnam.
Analysis from the government has estimated a £440m (US$555m) benefit for UK alcohol exporters from the removal of trade barriers.
Gin exports from the United Kingdom also dropped by double digits while Scotch whisky exports declined during the first half of 2023 by volume and value.
There are ongoing negotiations regarding India’s 150% tariff on Scotch imports, which could see exports rise if the duty is cut.
