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

The global market for high-end spirits experienced a significant downturn in 2024, according to the latest Status Spirits Strategic Study from IWSR, a leading authority on beverage alcohol trends. The study reports that sales of status spirits—defined as bottles retailing for over $100—fell by 8% in value last year, erasing nearly $1 billion from the segment’s total worth. Despite this decline, analysts at IWSR describe the setback as cyclical rather than structural, with expectations for moderate growth to return over the next five years.

The downturn affected almost every major market, with China seeing the steepest drop. Sales of status spirits in China plummeted by 28% in value, a decline even sharper than the previous year’s losses. This drop was attributed to ongoing economic weakness and an anti-dumping investigation that disrupted local duty free channels. As a result, the United States overtook China as the second-largest market for high-end spirits, despite its own 5% decline in value.

Duty free channels emerged as a rare bright spot in 2024. Sales through duty free outlets grew by 5%, surpassing both the US and China in value terms. The recovery of international travel and a growing trend toward experiential luxury have helped drive this growth. IWSR forecasts that duty free will continue to be a key driver for the segment, projecting a compound annual growth rate (CAGR) of 3% between 2024 and 2029.

Smaller and emerging markets are also gaining importance. India, Vietnam, and Malaysia are expected to see strong growth in high-end spirits sales over the next five years. India, in particular, is forecast to achieve a 9% CAGR for status spirits, with notable gains in blended Scotch, malt and grain Scotch, Japanese whisky, and agave-based spirits.

Within the category breakdown, Scotch whisky has proven more resilient than Cognac. While status-level Cognac sales dropped by 14% in value—mainly due to weak demand in China—Scotch whisky’s decline was less severe at 8%. Scotch now leads the status spirits category, holding a 38% share compared to Cognac’s 36%. Blended Scotch outperformed single malts, and the category is expected to benefit from lower US tariff exposure and new trade agreements, such as the recent UK-India deal.

The US market for high-end agave spirits, including tequila, appears to have reached its peak. New product launches slowed significantly in 2024 amid consumer fatigue and a saturated market. In contrast, Japanese whisky gained traction, especially through duty free channels and exclusive releases. US and Irish whiskey also expanded their presence, though both face potential oversupply issues in the future.

Baijiu, a traditional Chinese spirit, continues to dominate the global status spirits market, accounting for 85% of total value in 2024 after a 6% gain during the year. However, the category faces new challenges, including economic uncertainty and government austerity measures announced in May 2025.

The study highlights a shift in consumer behavior as well. Buyers of high-end spirits are becoming more selective and value-driven. They are looking for products that offer not just rarity and prestige but also a compelling story and a sense of authenticity. This trend is pushing brands to focus on limited releases and high-quality innovation rather than simply increasing the number of new products.

Industry experts suggest that brands willing to invest in innovation and marketing during the current slowdown will be best positioned to capture future growth. The market is becoming more fragmented, with increased competition from both established and emerging categories. As space on shelves and in consumers’ minds becomes more limited, only those brands that can connect with evolving consumer values are likely to thrive.

Despite the challenges faced in 2024, the fundamentals of the high-end spirits segment remain strong. IWSR’s analysis points to a temporary downturn driven by macroeconomic factors and oversupply, rather than a permanent shift in consumer demand. With duty free and emerging markets leading the way, and with brands adapting to changing tastes, the outlook for status spirits is cautiously optimistic for the years ahead.