Scotland's Scotch whisky industry is experiencing a severe downturn after a 15-year boom, with distilleries pausing production to manage an oversupply crisis known as a "whisky loch". The slump is triggering significant job cuts, business closures and strike action, including the recent appointment of administrators at GlenWyvis Distillery and strike action at Diageo's Cameronbridge plant over proposed redundancies.

The collapse stems from unsustainable pandemic-driven demand that has now normalised, compounded by reduced consumer spending, health consciousness, expensive pricing during the boom years, and geopolitical challenges. The US market suffered a 15 per cent export decline following tariffs in April 2025, whilst demand in France has fallen and the hoped-for Chinese market failed to materialise. The industry's structural constraint—whisky must mature for a minimum of three years and up to 40 years for premium varieties—makes rapid production adjustment difficult, with the global spirits sector holding a record $22 billion in ageing stock. However, tentative recovery signs emerged in the first half of 2026, particularly from surging Indian exports, though these have not yet offset declines elsewhere.