In 2023, exports of spirits from the European Union (EU) experienced a notable decline of 7% in value, totaling €9.07 billion (US$9.8 billion), as reported by trade body Spirits Europe. This downturn was primarily attributed to a double-digit decrease in exports to the United States.
Spirits Europe characterized 2022 as a robust year for the spirits industry, owing to the gradual reopening of borders and hospitality sectors across various markets.
Grape-based spirits emerged as the leading category by value, constituting 39% of total exports, followed by whisky at 19%, liqueurs and cordials at 17%, ‘spirituous beverages’ and other categories at 11%, and vodka at 10%.
While 2023’s figures fell short of those in 2022, they surpassed the totals recorded in 2021, which amounted to €8.41 billion (US$8.48 billion). Nonetheless, Spirits Europe highlighted a deceleration in overall growth over the past decade, transitioning from a 65% growth rate between 2011 and 2021 to a 45% growth rate between 2013 and 2023.
Emphasizing the importance of sustained support from trade and promotion policies to explore new markets and opportunities, Spirits Europe noted that products with geographical indications constituted approximately two-thirds of EU spirits exports in value.
Despite the decline in exports to the US, which remained the top export destination by value at €2.76 billion (US$2.99 billion), down 27% from the previous year, other key markets demonstrated growth. China and the UK, the subsequent top destinations, experienced respective increases of 2% and 8%, reaching €889 million (US$960 million) and €852 million (US$920 million).
The export performance of the spirits category in 2023 was predominantly driven by Asia, with notable growth in markets such as India (up 7%), Malaysia (up 9%), Thailand (up 35%), and Indonesia (up 105%). Conversely, sub-Saharan Africa saw a decline of 7%, while Latin America experienced a 13% decrease.
Spirits Europe underscored the significance of trade negotiations to address import tariffs, which can reach up to 150% in markets like India, Thailand, and Indonesia, thus impeding potential growth in these regions.
