The Economic Impact of Scotch Whisky Production in the UK 2015
28 Jan 2015
This report on "The Economic Impact of Scotch Whisky Production
in the UK", prepared by 4-Consulting with the Scotch Whisky
Association, illustrates the major contribution of the Scotch
Whisky industry to the Scottish and broader UK economies.
It explores Scotch Whisky's direct contribution to GDP, the UK's
trade performance, employment in the industry, productivity, the
supply chain, and the industry's contribution to rural
Benefits to the Economy
Scotch Whisky adds £3.3 billion directly and its total impact is
to add nearly £5bn overall to UK GDP.
Every £1 of value added in the industry produces another £0.52
of value in the broader economy. In other words every £1 million of
value added in the industry produces another £520,000 of value in
the broader economy.
The industry is the UK's largest single food and drink sector.
It accounts for 25% of the UK's food and drink exports.
90% of its operating expenditure is within the UK.
In value added Scotch Whisky is bigger than the UK's iron/steel,
textiles, shipbuilding, or computer industries; about half the size
of the UK's pharmaceuticals or aerospace industries; and one third
the size of the entire UK car industry.
The industry supports 40,300 jobs directly and indirectly across
Every job in the Scotch Whisky industry supports 2.7 further
jobs in the broader economy.
Scotch Whisky workers are the second most productive in Scotland
They are four times as efficient in terms of production as
workers in Scotland's aerospace and life sciences industries, and
four and a half times more productive than workers in digital
Scotch Whisky workers are the third best paid in Scotland (behind
energy and life sciences). They are better paid than employees in
financial and business services.
Every £1 paid to workers in the Scotch Whisky industry generates
a further £1.68 in salaries for workers in the broader economy
Every £1 paid to the industry's supply chain sustains a further
£0.54 in salaries to workers in the supply chain.
Scotch Whisky producers spend £1.4bn a year on Scottish
The industry sustains around 7,400 jobs, around £900 million of
GV£250 million of income in Scotland's rural communities.
The industry exports over £4bn annually. It is the UK's second
strongest contributor to national trade performance. The 2013 trade
deficit would have been 16% larger without the Scotch Whisky