Global spirits industry faces rapid change as low- and no-alcohol trends reshape market outlook

The global spirits industry is undergoing significant change, according to the inaugural ProSpirits Report 2025, released by ProWein, the world’s leading wine and spirits trade fair. The report, led by Professor Dr. Simone Loose of Geisenheim University, draws on insights from more than 200 industry professionals across 45 countries. It provides a comprehensive look at the current state of the sector, emerging trends, and future growth opportunities.

The report comes at a time when consumer drinking habits are shifting rapidly. New categories such as low- and no-alcohol ‘spirits’ are gaining traction, and competition is intensifying across markets. The ProSpirits team surveyed a broad range of industry participants, from multinational brands to smaller regional producers, to identify key issues and gather data on market conditions.

Despite ongoing economic challenges, the mood in the industry is cautiously optimistic. Most businesses described their current situation as satisfactory or good, with trade professionals reporting slightly better conditions than producers. Looking ahead to 2025, nearly half of respondents expect their economic outlook to improve. Innovation and premiumization are seen as the main drivers of future growth, especially as inflation and changing consumer spending patterns continue to affect the market. Producers also see opportunities in expanding into emerging markets and diversifying sales channels.

One of the most notable trends highlighted in the report is the rise of low- and no-alcohol ‘spirits’. Both producers and trade professionals agree that this segment represents a major growth opportunity. The spirits trade sees particular potential in rum, whiskey, and alcohol-free ‘spirits’, while producers are focused on low-alcohol ‘spirits’, ready-to-drink beverages, and alcohol-free options. By 2030, experts predict that alcohol-free ‘spirits’ could account for up to 10% of market volume and 8% of value—a significant development given that legal definitions still require spirits to contain alcohol.

Other factors shaping the market include growing consumer demand for authentic storytelling, unique production methods, and regional identity. Craft and artisanal spirits, mixology, and ready-to-drink products are also expected to play important roles in the coming years. In contrast, trends such as additive-free alternatives, single-serve packaging, and cannabis-infused beverages are seen as less likely to drive future growth.

Digitalization is another key theme in the report. As younger consumers who are comfortable with digital technology become more important to market growth, enhancing digital capabilities has become essential for spirits businesses. Seventy percent of industry experts identified digitalization—especially in marketing—as a priority. Nearly two-thirds believe that stronger digital marketing skills will be crucial for success in the future. While there is some caution about using artificial intelligence for customer engagement, Professor Dr. Loose notes that AI is evolving quickly and is already being used successfully in other industries.

The report also examines changes in sales channels. About half of experts see significant opportunities for digital platforms in mainstream spirits sales. However, premium spirits are expected to continue performing well through traditional specialist retailers and on-trade venues where consumers seek high-end experiences. Digital direct-to-consumer channels are also seen as promising for premium brands looking to build more personalized relationships with customers.

Export ambitions remain strong among producers: 81% view entering new international markets as critical for future sales growth. Larger producers with international experience are better equipped to handle complex distribution networks and regulatory challenges than smaller companies. North America and Central Europe remain top targets for expansion, with the United States, Germany, and the United Kingdom leading in market attractiveness. Asia is also gaining importance; China, Japan, India, Hong Kong, Singapore, and South Korea are all identified as key growth markets. Africa is emerging as an attractive region for exports as well. However, global trade tensions and tariffs add uncertainty to international business strategies.

The ProSpirits Report concludes that collaboration, data sharing, and entrepreneurial thinking will be essential for navigating the challenges ahead. By working together and adapting quickly to new trends and technologies, businesses can position themselves for success in a rapidly changing global market. The next ProSpirits Survey is scheduled for 2026 as the industry continues to evolve at pace.