Premiumisation polarises as whisky growth narrows

Whisky’s premiumisation story is continuing, but under the surface the picture is extremely varied, with gains confined to narrow price bands for most sub-categories.

According to IWSR data, the global whisky category grew by about +1% in volume and +2% in value* terms in 2025, but the headline figures mask sharply divergent trends within individual segments.

Many sub-category’s growth narrowed to one or two specific price tiers last year: premium for Scotch, ultra-premium for American, prestige and super-premium for Japanese, standard and super-premium for Irish whiskey.

“Growth in whisky is currently being driven by Indian, Irish and other whisky, while the three highest-profile traditional sub-categories – Scotch, US and Japanese – all lost volume in 2025,” explains Marten Lodewijks, IWSR Managing Director & President.

“The unifying theme across Scotch, US, Japanese and Irish whiskey is polarisation by price tier: we are seeing growth narrowing to specific bands within each whisky sub-category, rather than spreading across the price ladder. And in most cases that growth is concentrating at the premium end, while the mainstream and value tiers absorb the pain. Indian whisky is the notable exception.”

Scotch whisky: contrasting fortunes

While some of Scotch’s core markets are facing structural decline, growth is concentrated in developing markets.

This resulted in a mixed 2025 for Scotch, with volumes down -2% while value was up by +2%, according to IWSR data. “Mature markets are seeing their lowest volumes in decades as prices move further out of reach for average consumers, and recruitment of new drinkers stalls,” says Lodewijks. “Downtrading within the category is widespread, and even the mainstream standard tier isn’t providing much of a cushion.”

Bright spots include Türkiye, where volumes grew by +12% in 2025 and Scotch is forecast to overtake local spirit rakı by 2029. Notable gains were also recorded in Ukraine (+23% in 2025), as Scotch took share from vodka and brandy, and in Venezuela (+21%), once the world’s biggest market for 12 YO Scotch whisky, and now making a comeback after years of struggles.

In India, Scotch is continuing to post steady, consistent growth, with volumes rising by +5% in 2025, accompanied by double-digit gains in India travel retail. A trio of other markets – Brazil, Colombia and Malaysia – returned to growth in 2025 after losing ground the year before.

However, through a price tier lens, premium was the only significant price tier to grow globally in 2025, with volumes up +1%. Standard was flat, while the value segment suffered the worst losses, down -9%, suggesting that the pressure is not only caused by downtrading, but also by genuine volume losses at the lower end.

Recruiting new, younger LDA consumers may hinge on making Scotch more relevant to cocktail culture, versus traditional neat serves, while improved distribution and easing trade barriers are opening up new opportunities in parts of the Balkans, the Middle East and travel retail.

Irish whiskey: slower but still growing

Irish whiskey’s growth has slowed in recent years partly due to softness in the on-trade in some markets, where the category over-indexes, and due to one-off stocking issues at major retailers.