Beverage alcohol suffers global downturn in 2025
Thwarted by a mix of political instability, soaring costs and drop in consumer confidence, it’s no secret that the alcohol market is suffering. But the extent of just how much has been laid out in IWSR data which reveals beverage alcohol (TBA) volume dipped by 2% across 22 markets (around 75% of the global market) fell by 4% and 2% respectively in 2025.
And wine was, unsurprisingly, not exempt from last year’s doom and gloom, with volume and value fell by 4% and 2% respectively in 2025.
– accounting for approximately three-quarters of the global market – according to preliminary IWSR data released today.
The same regions saw a 4% drop in value (calculated using a 2024 fixed exchange rate to neutralise US dollar volatility), fuelled mainly by plummeting interest in national spirits. This was especially the case for baijiu in China, the world’s biggest TBA market, which saw volume decrease 2% and value slide 12%.
China, the world’s largest TBA market, was hit by a TBA-year-on-year volume decline of 2%, while value plunged 12%. But if the national spirit is excluded, volume saw just a 1% decline, and value remained flat.
Consumer confidence drop
The IWSR puts the poor performance of the TBA market down to a loss of consumer confidence, which can be explained by a toxic cocktail of geopolitical instability, soaring inflation and political polarisation.
There were also silver linings in the travel retail sector, where India celebrated a volume growth of 4% and a 5% rise in value, and South Africa saw an uptick for TBA in both volume (4%) and value (12%).
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Prosecco also emerged as a bright spot, with volume and value growth of 2% and 4% respectively.
Spirts slowdown
While it’s true that spirits took a knockback in 2025, emerging as the worst-performing category in 22 markets, if national spirits are excluded, the picture looks more positive with consumption down only 1% by both volume and value.
Vodka sales dropped 3% in volume and 1% in value.
However, Indian whisky increased its volume year-on-year by 2% while value increased 3%, and Irish whisky ticked up by 3% in the markets.
RTDs are ready to succeed
Beer was also down 2% in volume, although value remained still (0% change). Across the board, beer saw a mixed bag – a 4% volume and 5% value decline in Brazil was see-sawed by 6% volume and 14% value hike in South Africa.
RTD shone as the strongest alcohol beverage category in 2025. Volume growth climbed 3% and value by 4%, with the greatest gains in South Africa, Canada and Japan.
No-alcohol beer also surged, with volume growth of +8% and value growth of +12%.
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).
