Status spirits decline more cyclical than structural

High-end status spirits, defined by IWSR as having a global weighted average retail selling price of US$100+ per bottle, have not been immune to the negative trends affecting the broader beverage alcohol marketplace, with almost US$1bn wiped off the value of the segment in 2024, according to new data revealed in IWSR’s 2025 Status Spirits Strategic Study.

As spirits sales in China continue to suffer, falling -28% in value terms last year, the US has emerged as the number two market for the segment behind duty free, despite suffering its own value decline of -5% in 2024.

Duty free – which continues to recover from the lingering impact of the Covid-19 pandemic – will be a key driver of future status spirits growth, alongside an expanding basket of smaller markets, including India, Vietnam and Malaysia.

Status-level Cognac’s woes persisted with another -14% value decline in 2024, thanks largely to tough trading conditions in China, while Scotch whisky proved more resilient – and there were signs that high-end agave spirits sales in the US have now peaked.

“Having grown consistently since 2015, barring a dip during the Covid-19 pandemic, the overall value of status spirits fell by -8% last year,” says Guy Wolfe, Senior Insights Manager. “Underlying macroeconomic weakness in most major markets, combined with greater uncertainty due to the threat of US tariffs, kept consumer and investor confidence low during the year and restricted spend. In contrast to the previous year, virtually all price bands experienced declines, even the very highest.”

Despite current challenges, the longer-term prospects for the segment remain positive. Current macroeconomic weakness and the challenges of oversupply are thought to be more cyclical than structural, with sales expected to return to moderate growth over the next five years.

“Nonetheless, softer demand and greater availability of product means competition is now inevitably fiercer,” points out Wolfe. “A wider range of players with aged stocks and the rise of newer status categories like agave have created a more fragmented marketplace. Space on shelf and in buyers’ minds is thus very limited.

“Brand owners who invest through the downturn and focus on limited, high-quality innovation will be best positioned to grow and gain share in the future.”