Heritage, desire and diplomacy: why China still values scotch whisky

China has fueled western luxury brand growth over a decade, especially scotch whisky, with exports rising significantly until a recent sales decline. Young, discerning consumers now favor premium offerings, indicating market maturation.

For more than a decade, China has been one of the most important growth engines for western luxury brands. From fashion and watches to fine wines and spirits, rising incomes and global exposure have fuelled an extraordinary appetite for premium products.

Scotch whisky has been a major beneficiary. Between 2019 and 2023, exports to China surged in value from under £90 million to more than £235 million. But sales have fallen for three consecutive years, while inflation, rising costs and trade tensions have squeezed margins. Now, exports may benefit once again after China halved tariffs on scotch from 10% to 5%.

The sales slowdown reflects a maturing market in which Chinese consumers are becoming more selective, more knowledgeable and more demanding. This is leading to a shift from volume to value, from older to younger consumers, and from conspicuous to considered consumption. These trends help explain both the recent downturn and the sector’s longer-term resilience.

After the height of the COVID pandemic, when economic confidence weakened in China, luxury consumption adjusted, with consumers buying fewer items but investing more carefully.

This pattern is clearly visible in whisky. While overall volumes have fallen, it continues to benefit from “premiumisation” – sustained interest in aged single malts, limited editions and iconic distilleries.

Unlike western markets, where whisky has traditionally been associated with older drinkers, China’s core whisky consumers are young. The typical whisky drinker is gen Z: urban, affluent, well-educated and often well-travelled internationally.

China is the ninth largest market for UK whisky exports. In 2024, the UK accounted for 85.6% of China’s whisky imports by value – most of this is scotch. For Chinese consumers, luxury has long been tied to authenticity and provenance. In premium spirits, this logic is particularly powerful.

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