Global Drinks Sales Slump as Consumers Trade Down

The global drinks market lost momentum in 2025 as consumers pulled back from higher-priced alcohol and shifted more interest toward lower-cost products and no-alcohol alternatives, according to preliminary data from IWSR, the beverage research firm.

Across 21 major markets, total beverage alcohol volumes fell 2% last year and value declined 4%, IWSR said. That was the first time in recent years that volume held up better than value, a sign that shoppers were trading down rather than spending more per bottle or can.

Wine was among the categories under pressure. Its volumes fell 4% and its value dropped 2% in the same markets, adding to concerns in an industry already dealing with weaker demand in several countries and a slower pace of premium sales. Beer volumes slipped 1%, while beer value was flat.

Spirits performed worse than beer and wine. IWSR called spirits the worst-performing major category in the period it studied. Spirits volumes fell 4% and value dropped 9%. When national spirits such as baijiu were excluded, the decline was less severe, at 1% for both volume and value.

The sharpest weakness came at the top end of the market. Super-premium-and-above spirits, including national spirits, posted a 15% drop in value in 2025. Standard-priced spirits fell 7%, while products in the value-and-below tier declined 4% and premium spirits were down 5%. IWSR said the share of spirits volume sold in premium-and-above price bands fell to less than 10%, while value-and-below products accounted for 70% of the global spirits market.

Marten Lodewijks, managing director and president of IWSR, said falling disposable incomes and weak consumer sentiment in many of the markets studied had slowed, and in some cases reversed, the long-running push toward premiumization. He said shoppers were being more cautious across both spirits and beer.

A few categories still showed growth. Irish whiskey rose 2% in volume and value, even though sales in the United States, its largest market, fell 3%. Agave spirits increased 1% after years of double-digit gains. IWSR said Irish whiskey gained ground in India, Japan and Poland, while agave grew in Mexico, Colombia and the United Kingdom.

The no-alcohol segment also continued to expand. No-alcohol spirits rose 7% by volume, alcohol-free beer grew 8%, and wine alternatives posted gains in markets including the United Kingdom, the United States, Canada and France even though their overall performance remained mixed.

IWSR said emerging markets offered some of the clearest signs of resilience. Indian whisky added five million cases and nearly $500 million in value last year. India’s total alcohol volumes rose 4% and value increased 5%. South Africa, Thailand, Colombia and Mexico also recorded gains in total beverage alcohol.

The firm said national spirits continued a long-term decline in volume, with baijiu taking a particular hit because of China’s slower economy and government restrictions. Gin was not broken out globally in the report, but IWSR said low-priced local brands helped support the category in markets such as the Philippines and India.

Lodewijks said tariff disruption and cautious consumers had put pressure on premiumization strategies across the industry. He said major multinational spirits companies were now shifting toward volume growth, broader relevance and portfolios that are more evenly spread across price tiers rather than relying mainly on margin expansion.