Global alcohol consumption fell for a third straight year in 2025

Global beverage alcohol volumes fell again in 2025, marking a third straight year of decline as consumers drank less often and with more restraint, according to new data released Thursday by IWSR, the drinks market research firm.

Total beverage alcohol volumes dropped by -2%, equal to about 500 million nine-liter cases, compared with 2024. Beer, wine and spirits all posted declines. Ready-to-drink products, or RTDs, were the only major category to grow. Wine also slipped below spirits in global volume for the first time.

The figures point to a broad shift in drinking habits across many markets. Marten Lodewijks, managing director and president of IWSR, said the industry is going through “a major reset.” He said consumers are not walking away from alcohol altogether, but are becoming more deliberate about how often they drink and how much they consume.

That change was visible across categories. Global spirits volumes fell by -3% in 2025, extending a decline that began in 2017. But the picture was uneven. If national spirits, largely baijiu in China, are excluded, spirits volumes were roughly flat last year.

Whisky was one of the brighter spots. Global whisky volumes rose by +2%, driven mainly by Indian whisky in India, where volumes increased by +4%. Lower-priced whiskies still account for most sales, but premium tiers continued to expand. Indian single malts also gained ground. Irish whiskey volumes rose by +2%, continuing a longer growth trend for the category.

Other whisky segments did not fare as well. Scotch whisky volumes fell by -2%, Japanese whisky declined by -3%, and Canadian whisky slipped by -1%.

Tequila also remained in growth, though at a slower pace than during its recent boom years. Global tequila volumes rose by +2% in 2025. Ultra-premium tequila performed better, with volumes up +8%, showing continued demand for high-end expressions even as the broader market cooled.

Vodka volumes fell by -2%. Rum declined by -1%, though global rum volumes remained above 2019 levels. Cognac and Armagnac dropped by -7%, matching the steep declines seen in 2023 and 2024. In both rum and Cognac/Armagnac, South Africa stood out with double-digit growth.

Gin posted modest growth of +1%, but that increase came mostly from locally produced products in low-price and value tiers, especially in emerging markets. Premium and super-premium gin remained under pressure. Globally, premium-plus gin tiers declined by -2%, despite gains in Brazil, India, Japan and France.

Bitters and spirit aperitifs rose by +2%. IWSR said growth came from standard and lower-priced bitters in sub-Saharan Africa and South America, along with steady expansion of spirit aperitifs worldwide. Europe remained the center of that market, accounting for more than two-thirds of global consumption.

RTDs were the clearest area of strength in 2025. Global RTD volumes grew by +3%, even though the United States, the largest RTD market, recorded its first annual decline since 2015. The U.S. still represents about 40% of total global RTD volume. Premium-and-above RTD volumes rose by more than +15%, suggesting that consumers who remain active in the category are trading up.

Japan, the second-largest RTD market, also grew more slowly than in previous years. That slowdown may indicate a more mature phase after years of strong canned cocktail consumption. At the same time, several European countries entered the top ranks of RTD growth markets, including Spain, the Netherlands and Britain.

Beer continued to lose volume globally. Total beer volumes fell by -2% in 2025, despite strong performances in India, South Africa and Vietnam. Even so, premium-and-above beer grew by +1% worldwide, helped by gains in Vietnam, China, South Africa and India.

Wine had one of the weakest performances among major categories. Global wine volumes dropped by -5% in 2025, extending a long-running decline. The fall was large enough that spirits overtook wine in global volume despite spirits’ own contraction. Within wine, sparkling products offered some support, especially Prosecco and Crémant. Still and sparkling no-alcohol wines also posted gains.

No-alcohol products remained one of the strongest growth areas in the drinks business. No-alcohol beer volumes rose by +8%. No-alcohol spirits also increased by +8%. No-alcohol still wine climbed by +13%, and no-alcohol sparkling wine rose by +13%.

Those increases reflect a moderation trend that has spread across many countries and age groups. Producers have responded with broader ranges of alcohol-free products and more premium positioning. Lodewijks said no-alcohol remains small in total volume terms but is growing quickly and attracting consumers willing to pay for better alternatives.

Geographically, India remained the strongest major growth market for beverage alcohol overall. Total beverage alcohol volume there increased by +4% in 2025. IWSR said India is now the world’s eighth-largest beverage alcohol market and could rise to fifth place by 2035 if current trends continue.

Türkiye was another notable growth market, especially within Europe. IWSR said gains there were driven largely by standard-price products across several categories.

The latest data suggests that while global alcohol consumption is shrinking overall, demand has not disappeared evenly across products or regions. Growth is concentrating in specific categories such as RTDs and no-alcohol drinks, in premium niches such as ultra-premium tequila and higher-end RTDs, and in developing markets where rising incomes and changing consumer habits continue to support expansion.