‘National spirits’ lead global beverage alcohol decline over 2025
According to preliminary data released today by the IWSR, total beverage alcohol (TBA) volume declined in 2025 by -2% across 22 markets – representing about 75% of the global market.
In the same regions, TBA value fell by -4% (calculated using a 2024 fixed exchange rate to smooth out US dollar volatility).
The IWSR attributed this drop in value to a decline in the consumption of ‘national spirits’. With this category excluded from the data, year-on-year TBA value saw a change of 0%.
This includes Baijiu in China – the largest TBA market globally – which saw a volume decline of -2%, and a value decline of -12%. When Baijiu is excluded from China's TBA stats, volume fell by -1% and value was flat (0%).
Declines also happened for the spirits category as a whole – with declines of -4% volume and -9% value. However, when ‘national sprits’ are excluded, consumption was down only -1% in both volume and value.
Most traditional categories were also hard hit, including wine, which saw a -4% fall in volume while value fell -2% (although Prosecco, an exception, saw volume growth of +2% and increased value of +4%).
Beer was also down -2% volume, although value held firm (0% change). Market-by-market it was a mixed bag – in Brazil, there was a decline of -4% volume and -5% value for beer, while in South Africa, volume grew by +6%, while value shot up +14%.
RTDs have continued to outshine the rest of the TBA space as the only major category to experience growth (+2% volume, +4% value).
The insights firms said that the greatest gains for RTDs were made in South Africa, Canada and Japan, while the world’s largest RTD market, the US, saw a -1% fall in volume and no change in value.
Additionally, a few subcategories had a good year, including Irish whiskey – with a volume and value increase of +2% (despite both declining -3% in the USA, its largest market).
No-alcohol beer also surged, with volume growth of +8% and value growth of +12%.
IWSR explained that driving these declines is “high inflation, political polarisation and international conflict”, which have “dampened consumer confidence”.
This has reduced alcohol spend across many major markets including the US (down -5% volume, -4% value) and Brazil (-4% volume, -3% value).
Despite the gloomy world economic outlook, a few emerging markets did see TBA growth, such as South Africa, which grew +4% in volume and +12% in value, while India also grew +4% (volume) and +5% (value).
The markets included in the preliminary 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).
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