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At this year’s London Wine Fair 2025, Miles Beale, CEO of the Wine and Spirit Trade Association (WSTA), offered a sobering but ultimately resilient overview of the state of the UK’s wines and spirits industry. Pulling from data, historical context and while also garnering insights for the future, Beales painted a picture of an industry at a crossroad. Despite serious headwinds and being buffeted by global disruption, national policy missteps and structural pressures – the potential for reinvention and growth remains strong within the trade.
Why the UK trade matters
Beale reminded us of the significance of the UK wine and spirits trade. He said: “The UK remains the world's second largest importer of wine by volume – and we are nipping at the heels of Germany who occupy the number one spot. We're also, of course, the second largest importer by value after the US – for the time being. And, of course, the UK is also the world's largest exporter of spirits.”
Beale continued: “In 2024, the UK imported over one and quarter billion litres of wine. That's the equivalent of nearly 1.7 billion 750 milliliter bottles – not bad for a small island, famous perhaps more for its beer and distillation heritage, than for wine.”
With a rich history of importing wine dating back to the 12th century, the drinks industry makes “a significant economic contribution to the UK economy… Those businesses account for £33 billion in economic activity. Stop and think about that for a bit. It's huge. Those same businesses also contribute almost £8.9 billion, in total GVA to the UK economy, and support nearly 200,000 full time jobs. In short, we are an economically significant sector,” noted Beale.
Despite our significance to UK economic activity, Beale points out the industry is facing some serious challenges that require innovative solutions.
Beale highlighted the three most pressing challenges facing the sector, but he also outlined reasons to remain optimistic.
Reshaping of global trade
Beale pointed out that a succession of geopolitical turbulence and a retreat from liberal trade models are reshaping international commerce and have been doing so for some time.
“Since 2016 those challenges have been almost exclusively a succession of dominant, single issues: preparing for and dealing with the aftermath of Brexit; the impacts of and the recovery from COVID; the UK's review of excise duty; and ensuring our voice is heard by a new UK government. In 2025, it all looks very different. Geopolitical tensions across the globe are as heightened now as ever in recent memory. The risk of a global trade war has spooked the markets, undermined confidence and reduced forecasts for growth. And established political orthodoxy is increasingly being questioned,” said Beale.
But even with the previous years of instability, the post-Brexit landscape, US protectionism and increasing reliance on bilateral deals mark a definitive end to unfettered globalisation.
Beale noted though that tariffs remain largely unchanged for UK wine imports with 85–90% remaining tariff-free. In actuality it is non-tariff barriers, like policy and supply chain uncertainties, that are the true threats. Partnering with companies that can help businesses free up working capital and remain flexible will be key going forward.
Government policy disconnect
If this government is truly serious about its plans to grow the economy, then it will need to work harder to overcome the prevailing head winds. Beale challenged the government with a need to do more if it was truly committed to economic growth – particularly for the wine and spirits industry.
“To be brutally honest, it’s about time we saw some hard evidence of its commitment to economic growth. The political soundbites about growing the economy are beginning to ring hollow in the absence of concrete actions with measurable benefits. Businesses in the alcohol and retail hospitality sectors – and especially those that supply them – feel ignored at best. At worst, they feel they've been deliberately targeted,” said Beale.
He further added the drinks trade has been bearing the brunt of those policies. “Wine and spirits businesses have been hit more often and harder. It's time for the government to listen. To acknowledge our concerns. To take action. Because it's not us versus them, it should instead be all hands to the pump, to drive new economic growth,” said Beale.
Beale didn’t mince words: recent government actions, like increased national insurance, extended producer responsibility (ERP) have contradicted the economic growth agenda and that of the industry. It has increased uncertainty around business planning that again is harmful to growth. He called on the trade to work collectively together to continue to ensure our unified voice is heard.
Under appreciated sector
Beale pointed out, “98% of the £8.9 billion in GVA the UK wine sector creates comes from operations other than UK wine production – yet the businesses that contribute the vast majority of that GVA feel they are being overlooked.”
He goes on to point out that the Industrial Strategy is set to be released this month by the UK governemnt, which will focus on eight sectors identified as offering the highest opportunity for growth, however our sector is not one of those eight.
“It’s time for the government to recognise what government can do to help businesses in our sector thrive. Government needs to listen actively and take the time to consult while plans are being developed – not simply as an afterthought,” challenged Beale.
Reasons to hope
Despite the challenges, Beale closed on a hopeful note: this is an industry that has repeatedly proven its ability to adapt, evolve, and thrive. From medieval trade routes to modern sustainability breakthroughs, UK wine and spirits professionals have consistently risen to the occasion.
“Yes, the world looks different now than it did a year ago, but many of the challenges can be overcome or adapted to. Yes, there are multiple challenges facing the wine industry, but again those challenges can be overcome with successful collaboration at the international and national level – providing regulators are prepared to listen, “ said Beale.
It also relies on our innovative and every-adapting sector to continue to change, embrace new solutions and adapt. All is not lost.
Beale reflected: “Change is all around us – but not decay. We’re a sector that has shown it can adapt. We did so after 2016. We did so during and after Covid. In fact, we have done so over and over since the 12th century. And we can change again.”
With the right support and a spirit of partnership, the UK can maintain its status as a global hub for wine and spirits.