IWSR: Spirits ‘Worst Performing’ Category in 2025

Why It Matters

The slump signals weakening consumer appetite for premium spirits, forcing brands to rethink pricing and product portfolios, while growth in RTD and emerging markets points to new avenues for revenue diversification.

Key Takeaways

• Global TBA volumes down 2% in 2025.
• Spirits down 4% volume, 9% value, worst category.
• China’s national spirits caused 12% value drop.
• RTD category grew 2% volume, 4% value.
• India and South Africa showed double‑digit value gains.

Pulse Analysis

The 2025 beverage‑alcohol landscape was shaped by macro‑economic headwinds that eroded discretionary spending. High inflation, lingering tariff disputes—particularly between the United States and key export markets—and a heightened consumer focus on health and moderation squeezed overall demand. Analysts note that these pressures disproportionately affected premium categories, where price sensitivity rose sharply, and the traditional premiumisation trajectory stalled across major markets.

Spirits bore the brunt of the downturn, registering the steepest volume and value declines among all major categories. The impact was most pronounced in China, where national spirits like baijiu drove a 12% value contraction, dragging global figures down. Even when national spirits are excluded, the sector still posted a 4% volume dip, underscoring a broader shift away from higher‑priced, spirit‑centric consumption. Producers are now forced to balance cost‑inflation pressures with the need to maintain brand equity, prompting a pivot toward value‑oriented offerings and smaller‑format packaging.

Conversely, the ready‑to‑drink (RTD) segment proved resilient, expanding 2% in volume and 4% in value, making it the sole category with positive growth across the 22 markets surveyed. Emerging economies such as India and South Africa also delivered robust performance, with double‑digit value gains driven by local whisky and innovative product launches. These pockets of expansion suggest that brands can offset spirits weakness by investing in RTD innovation and targeting growth markets, leveraging localized flavor profiles and competitive pricing to capture shifting consumer preferences.