‘A major reset’: beverage alcohol volumes fall again in 2025

Total beverage alcohol (TBA) volumes declined for the third successive year in 2025, falling by -2% or 500m nine-litre cases, according to newly released data from IWSR.

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. No-alcohol was once again a positive for the industry, and there were also gains for Indian whisky, Irish whiskey, tequila and bitters/spirit aperitifs.

In a challenging year, India continued to represent the strongest growth market, posting TBA volume growth of +4%. Currently the world’s eighth-largest global beverage alcohol market, it is expected to rise to fifth spot by 2035. Meanwhile, Türkiye was a key growth market in Europe, with the standard price segment driving gains across multiple categories.

“The global beverage alcohol market is undergoing a major reset,” says Marten Lodewijks, IWSR Managing Director & President. “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.”

Signs of maturity for dynamic RTD category

The clearest bright spot for beverage alcohol in 2025 was RTDs, which grew volumes by +3% despite a fall in the dominant US market – the first annual decline since 2015. Nonetheless, premium-and-above RTD volumes rose by more than +15%, and the US still accounts for about 40% of total global category volumes.

The second-largest RTD market, Japan, registered slower volume growth than in previous years, suggesting that it is maturing after the decades-long domination of canned cocktail culture. European markets feature in the top 10 global RTD growth markets, including Spain, the Netherlands and the UK.

“RTDs remain the most dynamic space in beverage alcohol,” says 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.”

Mixed bag for spirits as declines persist

Global spirits volumes fell by -3% in 2025, continuing a long-term decline that began in 2017. However, excluding national spirits (mostly baijiu in China), volumes were relatively flat in 2025.

Global whisky volumes increased by +2% last year, thanks almost entirely to gains for Indian whisky in India, which expanded by +4% in 2025. Lower-priced whiskies still dominate, but the premium price tiers are in growth. Indian single malts (ISMs) are also gaining popularity.

Irish whiskey volumes were up +2%, continuing the category’s long-term growth trajectory. Scotch whisky saw a total volume decline (-2%) as well as Japanese whisky (-3%) and Canadian whisky (-1%).

Tequila grew by +2%, representing what Lodewijks describes as “a continued but more measured expansion compared to the strong growth of 2021-22”. Ultra-premium tequila’s growing status as a luxury spirit of choice was reinforced by its +8% volume gain.

Vodka endured a mixed performance in 2025: 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. For both rum and Cognac/Armagnac, South Africa was a standout, registering double-digit growth.

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 premium-plus price tiers declined by -2% globally, despite gains in Brazil, India, Japan and France.

The healthy performance of bitters and spirit aperitifs – volumes up +2% in 2025 – was driven by the standard and lower-priced bitters segments, which grew strongly in sub-Saharan Africa and South America, as well as by the steady global expansion of spirit aperitifs. Spirits aperitifs performed well in Europe, which accounts for more than two-thirds of global consumption.

Wine lags spirits amid further falls

Total wine volumes declined by -5% in 2025, continuing the category’s long-term negative trend, with global spirits volumes overtaking wine for the first time last year, despite their slight decline. Growth in the wine category was seen in sparkling wines – especially Prosecco and Crémant – as well as from still and sparkling no-alcohol products.

Beer down despite premium growth

Like wine, beer continued its downward trajectory in 2025, with global volumes falling by -2% despite notable 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.

Another strong year for no-alcohol

The persistent and widespread moderation trend continued to fuel growth for no-alcohol products last year, 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,” says Lodewijks.

Full-year 2025 market data and 10-year forecasts to 2035 for 160 markets are now available on the IWSR Platform, giving you the most comprehensive view of the global beverage alcohol landscape – and where future growth is likely to come from – available today.

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