High-End Spirits Market Loses $1 Billion as Global Sales Drop 8% in 2024

Global sales of high-end spirits, defined as bottles retailing for more than $100, fell by 8% in value in 2024, according to the latest data from IWSR’s 2025 Status Spirits Strategic Study. This decline erased nearly $1 billion from the segment’s value. The drop is attributed to weaker global demand and ongoing economic uncertainty, with China leading the downturn. Despite this setback, industry analysts expect the market to recover over the next five years, driven by growth in duty free channels and emerging markets.

China remains the largest market for status spirits but saw a sharp 28% decrease in value last year. This was due in part to an anti-dumping investigation and new restrictions on duty free restocking, which hit Cognac sales especially hard. The United States has now overtaken China as the second-largest market for these premium products, though it also experienced a 5% decline in value. In contrast, duty free sales grew by 5% in 2024 as international travel continued to rebound after the pandemic. IWSR projects that duty free will see a compound annual growth rate of 3% between 2024 and 2029, outpacing both China and the U.S., where demand for high-end agave spirits is starting to wane.

Smaller markets are expected to play a larger role in the future of status spirits. IWSR forecasts that countries such as India, Vietnam, and Malaysia will collectively achieve a 3% annual growth rate through 2029. India stands out with an anticipated 9% annual growth rate for status spirits overall, including double-digit gains for Scotch whisky, Japanese whisky, and agave-based spirits.

Cognac suffered the most among major categories in 2024, with a 14% drop in value. Its share of the status spirits market has fallen from 51% in 2019 to just 36% last year. Scotch whisky proved more resilient, declining by only 8%. Blended Scotch outperformed single malts, and duty free sales provided some support. Scotch now holds a slightly larger share of the market at 38%. According to Guy Wolfe, Senior Insights Manager at IWSR, lower U.S. tariffs and a recent UK-India free trade agreement should help Scotch maintain its position.

The U.S. market for high-end tequila appears to have peaked, with fewer new product launches and signs of consumer fatigue. Japanese whisky saw growth thanks to exclusive releases and strong performance in duty free outlets. Both U.S. and Irish whiskey posted gains but face potential oversupply issues if current trends continue.

Baijiu remains dominant in the global status spirits market, accounting for 85% of total value after a 6% increase last year. However, new government austerity measures announced in China in May 2025 could slow future growth.

Competition within the segment is intensifying as more brands enter the market with aged stocks and new categories like agave-based spirits gain traction. Wolfe noted that shelf space and consumer attention are becoming increasingly limited as product availability rises while demand softens.

Despite these challenges, IWSR expects moderate recovery for status spirits over the next several years. The report suggests that brands investing during this downturn and focusing on limited-edition releases with high quality will be best positioned for future growth. However, it also warns that oversupply could become a problem if too many new products are introduced at once.

Buyers of high-end spirits are becoming more selective and value-driven. They are looking not only for scarcity and prestige but also for authentic stories that reinforce quality. As competition grows fiercer and consumers become more discerning, brand owners will need to balance innovation with careful management of supply to succeed in this evolving market.