Why is Scotch whisky production declining?

Scotch whisky production is declining due to increased export tariffs, particularly to the US, and weakening global consumer demand, alongside rising costs.

How are US tariffs affecting the Scotch whisky industry?

US tariffs add significant costs to Scotch whisky imports, negatively impacting sales in what is the industry's largest export market.

What is the impact on barley farmers from the Scotch downturn?

Distillers are reducing barley orders, leading to fewer contracts for farmers and financial pressure on the cereal sector.

Home / Business and Economy / Scotch Whisky Production Plummets Amid Market Woes

Scotch Whisky Production Plummets Amid Market Woes

13 Dec, 2025

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Summary

US tariffs and weakening global demand slash Scotch whisky exports.
Distillers cut barley orders, impacting farmers and suppliers significantly.
Production halts and slowdowns occur as companies adjust to market shifts.

Scotch Whisky Production Plummets Amid Market Woes

The Scotch whisky industry is experiencing a significant production downturn, grappling with challenging global market conditions. Tariffs imposed on exports to the United States, coupled with weakened demand in other international markets, are leading to reduced shipments and revenue.

Consequently, distillers are cutting back on orders for malted barley, creating a domino effect that impacts grain farmers and suppliers. Several major companies have announced temporary halts or slowdowns in production at various distilleries and maltings facilities across Scotland.

While a tariff reduction in India offers a potential long-term benefit, the immediate future remains uncertain. The industry is actively managing capacity against current demand, seeking to navigate the economic headwinds and preserve its premium market status.