The U.S. spirits industry achieved a historic milestone in 2024, with exports soaring to an unprecedented $2.4 billion.
This remarkable 10% increase from 2023 underscores the growing global demand for American spirits, particularly in the European Union (EU). However, ongoing trade disputes and looming tariffs cast a shadow over the industry’s future growth.
European Union Drives Export Growth
The surge in exports was largely fueled by a 39% increase in shipments to the EU, which accounted for approximately 50% of total U.S. spirits exports. Concerns over the potential reinstatement of tariffs in 2025 prompted accelerated shipments to the region.
DISCUS President and CEO Chris Swonger highlighted the significance of this growth, stating, “U.S. spirits exports hit a new high in 2024, recapturing lost market share since the UK and EU lifted retaliatory tariffs that were applied between 2018-2021.”
Trade Disputes Pose Ongoing Risks
Despite the record-breaking performance, trade tensions remain a significant challenge. Canada, the second-largest market for U.S. spirits, imposed a 25% tariff on American spirits in March 2024, leading to a decline in exports to the region.
Additionally, U.S. spirits face steep retaliatory tariffs in China and Türkiye, further complicating the global trade landscape.
American Whiskey Leads the Way
American whiskey continues to dominate U.S. spirits exports, accounting for 54% of total exports at $1.3 billion. However, whiskey exports experienced a slight decline in 2024, while other categories, such as cordials and vodka, saw substantial growth. Cordials exports surged by 128% to $367 million, and vodka exports increased by 82% to $292 million, reported The Whiskey Wash.
Future Outlook for U.S. Spirits
The future of U.S. spirits exports hinges on resolving trade disputes and securing additional market access agreements.
Swonger emphasized the importance of tariff-free trade, stating, “The EU’s recent decision not to reimpose a retaliatory tariff on American whiskeys and other U.S. spirits is a positive first step toward getting the U.S.-EU spirits sectors back to zero-for-zero tariffs.”
