Global alcohol market volumes dip below pre-pandemic levels as RTDs, Spirits show resilience – IWSR
Shifting consumption trends, economic pressures, and on-trade closures impact global alcohol sales across major markets.
GLOBAL – Global beverage alcohol volumes across the top 20 markets have fallen 2% below pre-pandemic levels, according to the latest data from IWSR.
The analysis, which excludes national spirits such as Chinese baijiu and Japanese shochu, revealed a 1% decline in total beverage alcohol (TBA) volumes in 2024, missing the projected 1%-2% growth and amounting to a shortfall of more than 300 million nine-litre cases.
Between 2019 and 2024, spirits (excluding national variants) and the ready-to-drink (RTD) category were the only segments to show volume growth. In contrast, beer volumes declined by 2%, while wine suffered a steep 21% drop.
The overall underperformance was attributed to economic downturns and changes in consumer habits in key markets such as the US, China, India, and regions of Europe.
China recorded a 4% decline in TBA volumes last year, with the global market for beer, Cognac, and Scotch particularly affected. This drop was linked to persistent on-trade closures and economic weakness, according to Emily Neill, Chief Operating Officer of Research and Operations at IWSR.
Spirits volumes, excluding national spirits, fell by less than 1% in 2024, making it the second-best performing category after RTDs and cider. However, when national spirits were included, the spirits category registered a 3% decline—reflecting a broader, long-term downward trend.
The United States experienced a 4% drop in spirits volumes, with agave-based spirits being the only major subcategory to grow. Similar volume losses were seen across Western Europe, Latin America, and China.
Despite this, spirits consumption grew in select Asia-Pacific markets, notably India and the Philippines. In contrast, the super-premium-and-above segment recorded a 3% decline in 2024 as consumers shifted away from luxury purchases in favor of more affordable alternatives.
The RTD category remained the strongest performer, with a 2% volume increase globally. All top 20 markets, except for Australia, China, India, and the UK, experienced growth.
Neill noted that the RTD segment continued to see dynamic activity, including diversification from traditional wine and spirits companies and collaborations between major spirits and soft drink brands.
RTDs’ broad product range and consumer appeal have made them a key area of innovation and growth for beverage companies, particularly as brewers look to diversify their portfolios beyond beer.
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