Status spirits market hit by US$1bn slump, but recovery expected
Status spirits – bottles retailing at more than US$100 – saw global sales fall by 8% in 2024, according to IWSR. Despite nearly US$1 billion in lost value, the segment’s long-term outlook remains positive, with duty free and emerging markets set to lead the recovery.
Sales of high-end spirits fell by 8% in value in 2024, with almost US$1 billion wiped off the segment, according to new findings from IWSR’s 2025 Status Spirits Strategic Study. Yet analysts suggest the downturn is more cyclical than structural, with growth expected to return over the next five years.
Market shifts: China down, duty free up
Defined by IWSR as spirits priced at US$100 or more per bottle, status-level brands have been hit by weaker global demand and economic uncertainty. China remains the biggest drag on the category, with sales down 28% in value last year. The US has overtaken China as the second-largest market for the segment, despite its own 5% value decline.
Duty free emerged as a rare bright spot, growing by 5% in 2024 as international travel continued its post-pandemic rebound. The channel is forecast to deliver a compound annual growth rate (CAGR) of 3% between 2024 and 2029, outpacing the expected flat performance in China and a projected 3% decline in the US, where demand for high-end agave spirits is waning.
Smaller markets are also tipped for expansion. IWSR forecasts that ‘other’ markets—including India, Vietnam and Malaysia—will collectively see a 3% CAGR value gain to 2029. India in particular is set to grow rapidly, with an anticipated 9% CAGR for status spirits overall, including double-digit gains for Scotch, Japanese whisky and agave categories.
“The duty free channel is benefitting from a broader trend toward experiential luxury,” said Guy Wolfe, Senior Insights Manager at IWSR. “Meanwhile, smaller markets like India, Vietnam and Malaysia are also set to play a greater role in future status growth.”
Category performance: Cognac declines, Scotch holds firm
Cognac continued to struggle in 2024, falling 14% in value, driven largely by weakness in China, where an anti-dumping investigation and restrictions on duty free restocking hit sales hard. Cognac’s value share of status spirits has dropped from 51% in 2019 to 36% last year, putting it behind Scotch at 38%.
Scotch proved more resilient, with an 8% decline in value. Blends outperformed malts, and duty free sales provided a lift. “Having become the leading status spirits category in 2023, Scotch consolidated its position in 2024,” said Wolfe. “Lower US tariff exposure and the recent UK/India free trade agreement should help support sales moving forward.”
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High-end tequila in the US appears to have reached its peak, with fewer new launches and growing consumer fatigue. Japanese whisky, by contrast, grew on the back of duty free and exclusive releases. US and Irish whiskey also saw gains, though both risk future oversupply.
“Scotch is expected to lead future prestige and prestige-plus spirits growth,” Wolfe noted. “US and Japanese whisky will also make progress, while Cognac is set to recover from 2027. Weaker US demand will see agave spirits fall back.”
Baijiu continues to dominate the status spirits market, accounting for 85% of total global value in 2024 following a 6% rise during the year. However, new government austerity measures announced in May 2025 may temper future growth.
Fiercer competition in a crowded market
Wolfe highlighted that weaker demand and higher product availability are intensifying competition across the segment. “A wider range of players with aged stocks and the rise of newer status categories like agave have created a more fragmented marketplace,” he said. “Space on shelf and in buyers’ minds is thus very limited.”
While the broader environment remains challenging, IWSR expects moderate recovery in the coming years. “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,” Wolfe advised.
As launches proliferate, the report warns of oversupply. “New product development remains key to status spirits growth,” Wolfe said. “However, with the current challenges of oversupply, it is essential that brand owners limit both the number and volume of new releases.”
He added that buyers are becoming more discerning: “In today’s market, status spirits buyers are more selective and value-driven, seeking not just scarcity and prestige but also a compelling story that reinforces quality and authenticity.”
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