Scotch whisky exports fell by more than a tenth in the first half of this year, according to new figures from the industry.
The Scotch Whisky Association blamed anti-extravagance measures in China, an economic slowdown in some markets and a stronger pound sterling for the decline as well as unspecified “uncertainty” and de-stocking among global distributors.
Though exports to several key markets including France and Taiwan increased during the period, the SWA admitted “the overall trend was downwards”.
Total exports in the first half were £1.77 billion, down 11% from £1.99bn in the same period last year.
The slump follows a decade of fast growth for the industry.
The SWA said it has confidence in the long-term future of Scotch, with many projects for new distilleries under way and up to £2bn of capital investment in Scotland committed by producers.
SWA chief executive David Frost said: “We are confident that Scotch whisky will continue to grow in the long-term as markets stabilise and new ones, such as emerging economies across Africa, open up.
“However, it is clear that in the short run there are economic headwinds affecting exports.
“The latest figures also act as a reminder that the success of Scotch whisky can’t be taken for granted.
“We need support from Government to beat down trade barriers and help us access new markets overseas.
“That is why we are determined to play a full part in the forthcoming debate about further devolution, so that it enables a supportive business environment to ensure the future success of Scotch whisky.”
Exports to France grew 3% to 86 million bottles, making it the biggest market by volume, and by 6% to £211m to put it in second place behind the US in terms of value.
Exports to the United Arab Emirates were up 26% to £54m, with the area acting as a distribution hub for parts of Africa, Asia and India.
Australia was up 4% to £37m while growth of 31% was recorded in the Indian market. There was growth in several other top 20 markets, notably Taiwan, Canada and Japan.
But many major markets in Asia and the Americas showed declining exports, including China, Singapore, the US, Brazil and Mexico.
The SWA said this was due to a mixture of reasons, including anti-extravagance measures in China a crackdown on government spending and gift-giving aimed at stamping out widespread corruption.
Economic slowdown in some markets, a stronger pound sterling and de-stocking were also cited as reasons for the fall.
Rural Affairs, Food and Environment Secretary Richard Lochhead said the iconic product was not immune from “economic difficulties around the globe”.
“I welcome the industry’s confidence in the long-term future of Scotch whisky and its continued commitment to £2bn of capital investment in Scotland,” he said.
“I look forward to working with the industry to develop new and existing markets, in line with the Scotland Food and Drink Export Plan, and as we work towards the further devolution of powers promised by the UK Government and others in the past few days.”