US tariffs, falling demand, and cost-of-living concerns have created a Scotch whisky glut.
Global sales fell 2.5% year-on-year in the first half of 2025, a third year of decline after decades of growth. Distilleries have been forced to scale back production or expand warehouses.
Alcoholic drinks were not exempted from US tariffs; falling Chinese consumption has hit many luxury industries; and younger people appear to be drinking less than previous generations.
The Scotch industry has been through this before, though: In the 1980s, a collapse in demand led to a “whisky loch” of unsold liquor, leading manufacturers to seek new markets such as Japan, Greece, and Spain, the Financial Times reported.