In 2025, total beverage alcohol (TBA) volumes declined for the third successive year, 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, India 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 IWSR MD & president, Marten Lodewijks. “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 alcohol last year was RTDs, which grew volumes by 3% despite a fall in the dominant US market – the first annual decline for the category in the country since 2015. Nonetheless, premium-and-above RTD volumes rose by more than 15%, and the US still accounts for about 40% of the category’s total global volumes.
The second-largest RTD market, Japan, registered a slower rise in volumes than in previous years, suggesting that it is maturing after the decades-long domination of canned cocktail culture. European markets feature in the top ten 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 were down by 3% in 2025, continuing a long-term decline that began in 2017. However, excluding national spirits (mostly baijiu in China), volumes for spirits were relatively flat last year.
Global whisk(e)y volumes increased by 2%, thanks almost entirely to gains for Indian whisky in its domestic market, which expanded by 4% in 2025. Lower-priced whiskies still dominate, but the premium price tiers are in growth. Indian single malts 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 (down by 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 (slipping by1%, although global volumes remain above 2019 levels) and for cognac/armagnac, where volumes fell by 7% – a similar rate of decline as those recorded in 2023 and 2024. For both rum and cognac/armagnac, South Africa was a standout, registering double-digit growth.
Gin’s 1% volume lift 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 price segments that drove the category’s boom. The premium-plus tiers declined by 2% globally, despite gains in Brazil, India, Japan and France.
The healthy performance of bitters & 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, which performed well in Europe, a region that accounts for more than two-thirds of global consumption.
Wine lags spirits amid further falls
Total wine volumes dropped by 5% in 2025, continuing the category’s long-term negative trend, with global spirits volumes overtaking wine for the first time, 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 inched up 1% worldwide, thanks to standout performances from China, India, South Africa and Vietnam.
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 alcohol-free 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,” says Lodewijks. “The mindful drinking consumer is here to stay, and they’re willing to pay for quality alternatives.”
Full-year 2025 market data and ten-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.
To find out how access can work for your business, head here to request a callback from IWSR.
