Super-premium-plus spirits fall 15% in 2025
Why does this matter?
BevTech founders need to understand the premiumization reversal and shift to value-tier products, as this fundamental market trend impacts product positioning, pricing strategies, and growth opportunities in emerging markets.
Highlights
Irish whiskey, agave and no-alcohol products were the only bright spots for the spirits sector last year as the super-premium-and-above segment struggled, according to IWSR. Preliminary data from IWSR revealed total beverage alcohol (TBA) volumes fell by 2% in 2025 in 21 markets, while value fell by 4%. IWSR noted that this marked the first time in recent history that volume outperformed value. IWSR labelled spirits the ‘worst performing major category’ for TBA in 2025. The segment’s volumes were down by 4% and value by 9%. Excluding national spirits (like baijiu), the decline was less harsh, by 1% for both volume and value. Beer saw a volume dip of 1% last year, while wine fell by 4%. In value terms, beer was flat and wine decreased by 2%. Several spirits segments performed well last year, including Irish whiskey, which gained 2% in volume and value, despite a 3% drop in the US – its biggest market. Agave spirits saw an uptick of 1% after years of double-digit growth. “Irish whiskey gained traction in India, Japan and Poland, while agave increased sales in markets including Mexico, Colombia and the UK,” said Marten Lodewijks, IWSR managing director and president. “In keeping with broader consumer trends, however, growth in both categories came primarily from the standard and premium price bands last year.” IWSR noted super-premium-and-above spirits (including national spirits) posted a 15% value slump in 2025, while standard-priced products were down by 7%. There were smaller declines for spirits in the value-and-below (down by 4%) and premium (down by 5%) price tiers. IWSR found that the total spirits volume share of the premium-and-above price bands fell to less than 10%, with value-and-below commanding 70% of the global spirits market. “As a result of falling disposable incomes and weak consumer sentiment in many of the top 21 markets, the previous trend towards premiumisation has slowed or, in some cases, gone into reverse,” Lodewijks explained. “Across spirits and beer, the premium-plus segments performed worse than lower tiers, as shoppers exercised caution.” While it remains small, the no-alcohol ‘spirits’ category saw its volumes rise by 7%. In comparison, alcohol-free beer rose by 8% and wine alternatives posted growth in the UK, US, Canada and France despite an overall decline. Emerging markets boom Indian whisky recorded another year of growth, expanding by five million cases and adding nearly US$500 million in value, IWSR added. IWSR highlighted India as a growing market for TBA. The country saw its total alcohol volumes rise by 4%, while value was up by 5%. In addition, South Africa, Thailand, Colombia and Mexico all posted TBA gains in 2025. While IWSR did not detail gin’s global sales, it said the category performed strongly led by low-priced local products in the Philippines and India. IWSR added that national spirits – predominantly baijiu in China and shochu in Japan – continued their long-term volume decline. Baijiu saw its value take a big hit due to its home country’s economic slowdown and government restrictions. “A turbulent 2025 has caused the drinks industry to recalibrate,” Lodewijks added. “Tariff disruption and a cautious consumer put premiumisation strategies under pressure, while emerging markets offered a rare bright spot. “The major multinational spirits players, whose prior strategies centred chiefly on continued premiumisation, are now shifting tack. Recent restructuring and leadership changes indicate a greater focus on volume, relevance and more evenly weighted portfolios across price tiers, rather than margin expansion.” IWSR looked at 21 markets for its preliminary data: Canada, Mexico, the US, Brazil, Colombia, the UK, France, Germany, Italy, the Netherlands, Poland, Spain, South Africa, Russia, China, India, Japan, the Philippines, Taiwan, Thailand and Australia.
The Spirits Business
