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

In 2024, the global market for high-end spirits—bottles retailing at $100 or more—experienced a sharp downturn, with sales falling by 8% in value and nearly $1 billion erased from the segment, according to the latest IWSR Status Spirits Strategic Study 2025. The decline, while significant, is being described by analysts as cyclical rather than a sign of long-term structural weakness. The report points to a combination of macroeconomic pressures, shifting consumer demand, and increased competition as the main drivers behind the slump.

China, once the powerhouse of status spirits consumption, saw a dramatic 28% drop in value, deepening the losses it had already experienced in 2023. The country’s market was hit hard by an anti-dumping investigation and new restrictions on duty-free restocking, which further dampened sales of key categories like Cognac. As a result, Cognac’s share of the status spirits market has fallen from 51% in 2019 to 36% in 2024. Scotch whisky, meanwhile, proved more resilient, now holding a 38% share despite an 8% value decline. Blended Scotch outperformed single malts, and duty-free sales provided a rare bright spot.

The United States, despite a 5% value decline, overtook China as the second-largest market for status spirits, trailing only the duty-free channel. The U.S. market’s downturn was driven in part by a plateau in demand for high-end agave spirits, particularly tequila, which had previously fueled growth but now faces consumer fatigue and a saturated market. New launches in the agave category slowed significantly in 2024.

Duty-free sales, on the other hand, grew by 5% as international travel continued to recover from the pandemic. The IWSR forecasts that duty-free will be a key driver of future growth, with a projected compound annual growth rate (CAGR) of 3% between 2024 and 2029. This channel is benefiting from a broader trend toward experiential luxury, as travelers seek unique and exclusive products.

Smaller markets are also showing promise. India, Vietnam, and Malaysia are expected to collectively post a 3% CAGR in status spirits value through 2029. India stands out with a forecasted 9% CAGR, driven by strong gains in blended Scotch, malt and grain Scotch, Japanese whisky, and agave spirits. The recent UK-India free trade agreement is expected to further support Scotch sales in the region.

Baijiu remains the dominant force in the status spirits market, accounting for 85% of total global value after a 6% gain in 2024. However, the category faces new challenges following government austerity measures announced in China in May 2025, which could impact future growth.

The current downturn has intensified competition among producers. A wider range of brands with aged stocks and the emergence of new status categories like agave have fragmented the marketplace. Shelf space and consumer attention are increasingly limited, making it harder for brands to stand out. According to Guy Wolfe, Senior Insights Manager at IWSR, “A wider range of players with aged stocks and the rise of newer status categories like agave have created a more fragmented marketplace. Space on shelf and in buyers’ minds is thus very limited.”

Oversupply is another concern. The proliferation of high-end product launches has outpaced demand, leading to an imbalance that could persist if not addressed. Wolfe advises that brand owners should limit both the number and volume of new releases, focusing instead on high-quality innovation that resonates with consumers’ values and aspirations. Today’s buyers are more selective, seeking not just prestige and scarcity but also authenticity and compelling brand stories.

Despite the challenges, the long-term outlook for status spirits remains positive. IWSR analysts expect moderate growth to return over the next five years as macroeconomic conditions stabilize and new markets mature. Brands that continue to invest in innovation and maintain a disciplined approach to product development are likely to be best positioned for recovery.

The report underscores that while the segment’s recent losses are notable, they reflect cyclical turbulence rather than a fundamental shift in consumer behavior or market structure. As the industry adapts to changing conditions, the focus will be on quality over quantity, strategic investment, and capturing growth in emerging markets and travel retail channels.