Global alcohol volumes dip by 1% in 2024, reports IWSR

Preliminary 2024 data from IWSR shows that global beverage alcohol volumes declined by 1% compared to the previous year, as key markets like the US, China, India and Europe failed to meet forecasted growth. The fall in total beverage alcohol (TBA) volumes across the top 20 global markets also leaves the category 2% below its pre-pandemic levels in 2019. Wine continues its long-term decline, falling 21% compared to 2019, while beer volumes dropped by 2%. Only spirits—excluding national varieties—and ready-to-drink (RTD) products have shown growth over that five-year period.

The year was defined by several key challenges. In China, a combination of on-trade closures and broader economic weakness led to a 4% drop in TBA volumes, impacting global performance in categories such as beer, Cognac and Scotch. Expectations for India to compensate for these losses did not fully materialize, even though the Indian market performed better than many others. Among mature markets, both the US and China showed pronounced declines, while some emerging economies such as Brazil, South Africa, Mexico and India experienced more favorable results.

Soft global GDP growth and high living costs limited consumer spending power. Although inflation was more controlled across developed markets, the strain on household budgets remained evident. This led to a cautious consumer base, particularly visible in the stalling of the premiumisation trend. Beer saw some resilience, especially in the premium and super-premium segments, while RTDs continued to grow in volume. Hard seltzers continued to contract, but the broader RTD category remained on an upward path.

Agave spirits continued to grow, despite slowing demand in the US and Mexico. Indian whisky, particularly its emerging single malt segment, gained traction domestically. Prosecco saw a rise in consumption, supported by its affordability and increased popularity during early evening social occasions. Aperitifs and spritz-style cocktails also benefited from this trend.

The moderation trend—driven by consumers reducing their alcohol intake in both frequency and quantity—supported continued growth in no-alcohol and lighter alternatives. No-alcohol spirits grew at a faster rate than full-strength spirits in the top 20 markets, though they remain a small portion of the overall spirits category.

Spirits volumes fell 3% across the top 20 markets in 2024, though this figure includes national spirits such as baijiu in China and shochu in Japan. Excluding these, the decline was under 1%. The US market declined by 4% in spirits volume, with agave being the only major growth segment. Western Europe and Latin America also reported losses. In contrast, India, Russia, the Philippines, Japan and Thailand saw increases in international spirits volumes, with India and the Philippines posting the strongest growth.

The premium and super-premium tiers saw volume declines, most notably among Champagne, Cognac and malt Scotch. Consumers favored value options, with super-premium-plus spirits declining by over 3%. Agave spirits remained a partial exception, where premium products grew while value volumes contracted. Indian whisky at the high end also showed resilience.

Wine volumes dropped 4% across major markets. The US, UK, France, Germany and China all recorded significant declines. Spain stood out with growth, particularly in still wines, driven by competitive pricing. Prosecco also gained ground globally, helped by its lower price and versatility in cocktails such as the spritz.

Beer volumes were down 1%, mostly due to the downturn in China. However, markets like Brazil and Mexico showed a return to growth, and Europe performed better than in previous years. Premium and super-premium beers gained market share, reflecting consumer shifts from lower price tiers.

RTDs grew by 2% in volume, with expansion across most of the top 20 markets except Australia, China, India and the UK. The category continues to attract investment from beer, wine and spirits companies, and remains a key area of innovation and collaboration between traditional alcohol brands and soft drink producers.

Looking ahead to 2025, IWSR warns of further uncertainty, citing potential trade wars and tit-for-tat tariffs that could influence consumer choices and market dynamics.