02/04/2026

Global beverage alcohol declines amid volatile economic landscape

IWSR releases preliminary 2025 data covering 22 markets 

2 April 2026 (London) According to preliminary data released today by IWSR, total beverage alcohol (TBA) volume declined in 2025 by -2% across 22 markets (which together account for roughly 75% of the global market).  

TBA value for the same markets (calculated using a 2024 fixed exchange rate to neutralise US dollar volatility) saw a 2025 decline of -4%, driven primarily by a drop in the consumption of “national spirits” (particularly Baijiu in China). With national spirits excluded, preliminary 2025 data shows that year-on-year TBA value was flat (0% change).  

High inflation, political polarisation, and international conflict have dampened consumer confidence, leading to a reduction in spending on alcohol across many major markets. These include the United States (down -5% volume and -4% value) and Brazil (down -4% volume and -3% value).  

China, the world’s largest TBA market, saw a 2024-2025 TBA volume decline of -2% volume, and a value decline of -12%. With national spirits excluded, however, volume saw just a -1% decline and value was flat (0% change). 

Despite the overall downturn, some emerging markets nevertheless experienced TBA growth. South Africa saw 2024-2025 YOY increases for TBA in both volume (+4%) and value (+12%). India, likewise, saw a volume growth of +4% and +5% growth in value. 

From a category perspective, RTDs maintained their momentum from previous years and were the only major category to experience growth in 2025 across the markets covered in the data; 2024-2025 RTD volume growth was +2% and value growth was +4%. The greatest gains were seen in South Africa, Canada, and Japan while the US, the world’s largest RTD market, saw a -1% fall in volume with value flat (0% change). 

Wine volume across the 22 markets dropped by -4% in 2025, while value fell -2%. Prosecco was a notable exception, however, with YOY growth by volume of +2% and by value of +4%. 

Continuing an ongoing trend, beer consumption (excluding no-alcohol beer) had a mixed year in 2025: down -2% volume, but value was flat (0% change). Brazil, notably, saw a YOY -4% decline in beer volume and a -5% decline in beer value. YOY beer consumption in South Africa surged, however, up +6% volume and +14% value. 

Spirits was the worst performing major category across the 22 markets in 2025, losing -4% volume and -9% value. Excluding national spirits, however, spirits consumption was down only -1% by both volume and value. Vodka saw a -3% drop in volume as well as a -1% drop in value. Indian whisky increased its volume YOY by +2% while value increased +3%. 

Despite the challenging conditions, preliminary data shows that 2025 was an especially good year for some subcategories. Irish whiskey enjoyed volume and value increases of +2% across the 22 markets in 2025, despite volume and value declines of -3% in its largest market, the US.  

No-alcohol beer continued to surge, with a 2024-2025 volume growth of +8% and value growth of +12%. 

This is the second year running that IWSR has released preliminary data in advance of its confirmed global data for 160 markets, which will be published later in Q2 2026. The key markets included in this year’s preliminary results, 21 domestic markets plus Global Travel Retail, collectively account for approximately 75% of the 2025 global market by volume. 

Speaking about the preliminary data, IWSR President and Managing Director Marten Lodewijks said, “2025 was a particularly difficult trading environment for the beverage alcohol industry. In addition to continued economic challenges, the imposition of sweeping US tariffs and subsequent retaliatory measures caused severe disruption across the sector.

“Continued increases in the cost of living also put further pressure on discretionary spending, which includes beverage alcohol purchases, while a growing consumer focus on health, wellness, and moderation added further to the difficult market conditions.”

Luke Tegner, IWSR Head of Global Consulting added, “The long running trend of customers upgrading to higher quality products, known in the beverage alcohol industry as “premiumisation,” has been overshadowed by rising prices, alongside a consumer focus on optimising value for money spent.”

***END***

About IWSR: For over 50 years, IWSR has been trusted by the leaders of global beverage alcohol businesses as an integral part of their strategic planning and decision-making processes. We uniquely combine proprietary longitudinal market data, consumer insights and AI-enhanced data science, with valuable on-the-ground human intelligence in 160 markets worldwide, to decipher what is really happening in the global beverage alcohol market. With access to our data, clients from across the drinks industry, including multinational spirits, beer, and wine businesses; packaging and ingredient manufacturers; distributors; and financial institutions, plan their strategies and future investment with a reliable, consistent and complete understanding of the global landscape.

Notes to Journalists

Where appropriate, please cite “IWSR, the global leader in beverage alcohol data and insights.”

Interviews are available on request.

The markets included in the 2025 Preliminary Read data are: Australia, Brazil, Canada, China, Colombia, France, Germany, India, Italy, Japan, Mexico, the Netherlands, the Philippines, Poland, Russia, Spain, South Africa, Taiwan, Thailand, the US, the UK, and the Global Travel Retail market (duty free).

Value calculations were made using a 2024 fixed exchange rate to neutralise US dollar volatility.

For questions or interview requests, please contact:

Ned Vaught

ned.vaught@theiwsr.com

+44 (0) 7969 794568