2026-07-09
Global alcohol consumption fell again in 2025, marking a third straight year of decline as consumers drank less often and, in many cases, chose different products when they did drink, according to new data released by IWSR, the drinks market research firm.
Total beverage alcohol volumes dropped by -2% last year, equal to about 500 million nine-liter cases. Beer, wine and spirits all posted declines from 2024, while ready-to-drink beverages, 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, IWSR’s managing director and president, described the current period as “a major reset” for the global beverage alcohol business.
“Consumers aren’t abandoning alcohol, but they are being more intentional about the frequency and intensity with which they drink it,” Lodewijks said. “While volumes are still broadly declining, hotspots of growth and opportunity persist.”
Those pockets of growth were spread across categories and regions. India remained the strongest major growth market, with total beverage alcohol volume rising +4% in 2025. IWSR said India is now the world’s eighth-largest beverage alcohol market and is expected to climb to fifth place by 2035. Türkiye also stood out in Europe, where gains were driven by standard-priced products across several categories.
RTDs were the clearest bright spot. Global volumes in that segment rose +3% in 2025 even though the United States, still the largest RTD market, recorded its first annual decline since 2015. The U.S. still accounts for about 40% of global RTD volumes, and premium-and-above RTDs there grew by more than +15%, suggesting that consumers who remain in the category are trading up.
Japan, the second-largest RTD market, also grew more slowly than in earlier years, a sign that one of the world’s most established canned cocktail markets may be reaching a more mature phase. At the same time, European countries including Spain, the Netherlands and Britain ranked among the top 10 growth markets for RTDs.
Lodewijks said the category continues to expand even as its biggest markets settle into slower growth. He pointed to premium formats, new flavors and brand launches as signs that RTDs still have room to develop.
Spirits volumes fell -3% globally in 2025, extending a decline that began in 2017. But IWSR said that if national spirits such as baijiu in China are excluded, spirits volumes were roughly flat last year.
Within spirits, whisky was one of the better performers. Global whisky volumes rose +2%, driven largely by Indian whisky in its home market, where volumes increased +4%. Lower-priced whiskies still dominate sales in India, but premium tiers are growing and Indian single malts are gaining ground.
Irish whiskey also rose +2%, continuing a long expansion trend. Other whisky categories did not fare as well. Scotch fell -2%, Japanese whisky declined -3% and Canadian whisky slipped -1%.
Tequila grew +2% worldwide in 2025, a slower pace than during its stronger run in 2021 and 2022 but still positive at a time when many categories were shrinking. Ultra-premium tequila performed better than the broader segment, with volume up +8%, reinforcing its position as a high-end spirit with global appeal.
Vodka volumes fell -2%. Rum declined -1%, though IWSR noted that global rum volumes remain above 2019 levels. Cognac and Armagnac dropped -7%, matching the steep declines seen in 2023 and 2024. In both rum and Cognac/Armagnac, South Africa was one of the few standout markets, posting double-digit growth.
Gin edged up +1%, but that gain came mainly 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 -2%, despite gains in Brazil, India, Japan and France.
Bitters and spirit aperitifs rose +2%. IWSR said lower-priced bitters sold strongly in sub-Saharan Africa and South America, while spirit aperitifs continued to expand steadily around the world. Europe remains the center of that category, accounting for more than two-thirds of global consumption.
Wine had one of the weakest years among major drinks categories. Global wine volumes fell -5% in 2025, continuing a long downward trend that has weighed on producers across traditional wine markets. Even with spirits also declining slightly, wine lost enough ground for spirits to move ahead of it globally by volume.
There were some exceptions within wine. Sparkling wines performed better than still wines, with Prosecco and Crémant helping support demand. No-alcohol still and sparkling wines also posted gains, reflecting broader consumer interest in moderation.
Beer volumes fell -2% worldwide in 2025. That decline came despite notable growth in India, South Africa and Vietnam. As with RTDs and some spirits segments, premiumization remained one of the few positive themes. Premium-and-above beer volumes increased +1% globally, helped by strong performances in Vietnam, China, South Africa and India.
No-alcohol products delivered another year of strong growth across several categories. No-alcohol beer rose +8%, no-alcohol spirits increased +8%, no-alcohol still wine climbed +13% and no-alcohol sparkling wine also gained +13%.
The no-alcohol segment remains small compared with traditional beer, wine and spirits, but its momentum has become harder for producers to ignore. The data suggests that moderation is no longer limited to a niche group of consumers or a handful of urban markets. It is becoming part of mainstream drinking behavior across countries and price points.
Lodewijks said those trends show that consumers looking for lower-intensity drinking options are willing to spend on quality alternatives rather than simply abstain.
For producers, distributors and hospitality businesses, the latest figures add to evidence that recovery will not come from a simple return to pre-pandemic habits or earlier patterns of volume growth. Instead, demand appears to be shifting toward fewer drinking occasions, more selective purchases and stronger interest in premium products in some categories alongside no-alcohol alternatives in others.
The regional picture also matters more than before. Mature markets such as the United States and Japan are showing signs of slower expansion or contraction in categories that once drove industry growth. Meanwhile, developing markets including India and Türkiye are taking on greater importance for future volume gains.
IWSR said its full-year 2025 data covers 160 markets and includes forecasts through 2035. For an industry facing falling overall consumption but uneven demand across segments, those forecasts are likely to shape decisions on investment, product development and export strategy over the next decade.