Scotch whisky sales have experienced a decline for the third consecutive year, with a 2.5% drop in the first half of 2025. This downturn follows decades of consistent growth driven by rising incomes and demand from emerging markets. Factors contributing to the decline include trade tensions increasing retail prices, higher living costs pressuring consumer spending on premium spirits, and a slowdown in key markets like China due to economic headwinds and reduced luxury spending. Distilleries are responding by scaling back production and managing growing inventories.