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Major reset for drinks industry as alcohol sales fall globally

Total beverage alcohol volumes declined for the third successive year in 2025 but IWSR, the leading authority on the drinks industry, says there are still hotspots of growth.

Newly released data from IWSR shows volumes fell by -2% or 500m nine-litre cases in 2025. Beer, wine and spirits volumes all contracted versus 2024, with RTDs the only major category to see growth, and wine volumes fell below spirits for the first time.

IWSR Managing Director & President Marten Lodewijks said: “The global beverage alcohol market is undergoing a major reset. Consumers aren’t abandoning alcohol, but they are being more intentional about the frequency and intensity with which they drink it. While volumes are still broadly declining, hotspots of growth and opportunity persist.”

No-alcohol was once again a positive for the industry, with strong increases for no-alcohol beer (volumes up +8%), no-alcohol spirits (+8%), no-alcohol still wine (+13%) and no-alcohol sparkling wine (+13%).

“No-alcohol is still small in volume terms, but the growth rates and the speed of premiumisation within these segments tell us something important: the mindful drinking consumer is here to stay, and they’re willing to pay for quality alternatives,” said Lodewijks.

while there were gains for Indian whisky (+4%), RTDs (+3%), Irish whiskey (+2%), tequila (+2%), ultra-premium tequila (+8%) and bitters/spirit aperitifs.

“RTDs remain the most dynamic space in beverage alcohol,” said Lodewijks. “The category is maturing in its biggest markets, while simultaneously igniting in new ones – and the rapid shift towards premium formats, new flavours and brands, tells us that this is a category with real longevity.”

While global whisky volumes increased by +2% last year, thanks almost entirely to gains for Indian whisky in India, Scotch whisky saw a total volume decline (-2%) as well as Japanese whisky (-3%) and Canadian whisky (-1%).

Vodka volumes dipped by -2%. There were also declines for rum (-1%, although global volumes remain above 2019 levels) and for Cognac/Armagnac, where volumes fell by -7% – a similar rate of decline as that recorded in 2023 and 2024.

Gin’s +1% volume growth last year was mostly driven by gains in the locally-produced low-price and value tiers, especially in emerging markets, amid continued pressure on the premium and super-premium segments that drove the category’s boom.

The healthy performance of bitters and spirit aperitifs – volumes up +2% in 2025 – was driven by the standard and lower-priced bitters segments, as well as by the steady global expansion of spirit aperitifs.

Total wine volumes declined by -5% in 2025, continuing the category’s long-term negative trend. Growth in the wine category was seen in sparkling wines – especially Prosecco and Crémant – as well as from still and sparkling no-alcohol products.

Like wine, beer continued its downward trajectory in 2025, with global volumes falling by -2% despite growth in India, South Africa and Vietnam. However, premium-and-above volumes grew by +1% globally, thanks to standout performances from Vietnam, China, South Africa and India.

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Categories: Business