IWSR: Global Alcohol Market Shrinks for Third Consecutive Year

The global alcohol market contracted for a third consecutive year in 2025 as consumers became more selective about when and how much they drink. Yet amid the slowdown, one market continued to defy the trend: India.

According to newly released data from drinks market research firm IWSR, global Total Beverage Alcohol (TBA) volumes fell 2% in 2025, equivalent to a loss of 500 million nine-litre cases. It marks the third straight year of decline for the industry.

At the same time, India delivered some of the strongest growth among major alcohol markets, expanding 4% year-on-year and emerging as the key driver of global whisky growth.

“The global beverage alcohol market is undergoing a major reset,” said Marten Lodewijks, Managing Director and President of IWSR.

“Consumers aren’t abandoning alcohol, but they are being more intentional about the frequency and intensity with which they drink it. While volumes are still broadly declining, hotspots of growth and opportunity persist.”

India Powers Global Whisky Growth

If there is one country reshaping the future of the drinks industry, it is India.

Already the world’s eighth-largest alcohol market, India is projected to become the fifth-largest by 2035. Its expanding middle class, rapid urbanisation and young population continue to fuel demand across multiple categories.

The country’s influence is perhaps most evident in whisky.

Global whisky volumes grew 2% in 2025, according to IWSR. Almost all of that growth came from India, where whisky consumption increased 4%.

While entry-level products continue to dominate sales, premiumisation is accelerating. Indian Single Malts are also gaining increasing recognition among consumers at home and abroad, helping elevate the category’s profile.

For global drinks companies searching for growth, India is increasingly becoming the market that matters most.

Import Growth Reinforces the Trend

India’s import statistics paint a similar picture.

According to the Ministry of Commerce and Industry, India imported 108 million litres of spirits in 2025, worth US$648 million. Import volumes rose 17% year-on-year, while value increased 13%.

Whisky remained the dominant imported category, with volumes rising 15% to 72.1 million litres and import value increasing 10.5% to US$449 million.

Growth was also strong across other spirits categories:

• Rum imports rose 32% in volume.
• Gin imports increased 31%, while value surged 56%.
• Vodka imports climbed 35%.
• Liqueurs and cordials recorded the strongest growth, rising 60%.

Wine imports also expanded despite challenging conditions in many global markets. India imported 5.4 million litres of wine in 2025, up 13.7% year-on-year, while import value increased 10.9% to US$28.8 million.

Elsewhere, Turkey emerged as one of Europe’s few bright spots, with growth driven largely by mainstream-priced products.

RTDs Continue to Defy the Downturn

Among major alcohol categories, ready-to-drink beverages (RTDs) were one of the few winners in 2025.

Global RTD volumes increased 3%, making the category one of the strongest performers of the year.

The growth is particularly notable because it came despite weakness in the United States, which accounts for roughly 40% of global RTD consumption. The U.S. market recorded its first annual decline since 2015.

Japan, the world’s second-largest RTD market, continued to grow, although at a slower pace as the category matures.

Several European markets, including Spain, the Netherlands and the United Kingdom, also ranked among the fastest-growing RTD markets globally.

Spirits Hold Up Better Than Wine

Global spirits volumes declined 3% in 2025. However, the picture looks less severe once China’s baijiu market is excluded.

Without national spirits, global spirits consumption was broadly flat year-on-year.

Whisky remained one of the better-performing categories, rising 2% globally. Irish whiskey also posted 2% growth.

Elsewhere, performance was mixed. Tequila volumes increased 2%, while gin edged up 1%.

By contrast, vodka volumes fell 2%, rum declined 1%, and Cognac and Armagnac suffered a sharper 7% drop.

No-Alcohol Momentum Accelerates

As moderation becomes more mainstream, no-alcohol products continued to gain ground.

No-alcohol beer and no-alcohol spirits both grew 8% in 2025. No-alcohol still wine and sparkling wine expanded even faster, with volumes rising 13%.

Although the category remains relatively small, Lodewijks believes the trend is significant.

“No-alcohol is still small in volume terms, but the growth rates and the speed of premiumisation within these segments tell us something important,” he said.

“The mindful drinking consumer is here to stay, and they’re willing to pay for quality alternatives.”

Wine and Beer Continue to Struggle

Wine remained one of the weakest-performing major alcohol categories in 2025, with global volumes declining 5%.

For the first time, total global wine volumes fell below spirits.

There were, however, pockets of growth. Sparkling wine continued to outperform, particularly Prosecco and Crémant, while no-alcohol wine categories maintained strong momentum.

Beer volumes declined 2% globally. Although India, Vietnam and South Africa recorded healthy growth, it was not enough to offset weakness elsewhere.

Premium-and-above beer was one of the few bright spots, posting 1% growth, led by Vietnam, China, South Africa and India.

The overall picture is one of an industry becoming smaller but more polarised. Consumers are drinking less, but when they do drink, they are increasingly trading up, experimenting with new formats, or seeking alcohol-free alternatives. For producers and brand owners, growth is becoming harder to find—and increasingly concentrated in a handful of markets led by India.