Alcohol spend has continued to decline across most major world markets, with the premiumisation trend slowing, according to new data from the IWSR. 

Long hailed as the bright spot amid general decline, the insights company explained that premiumisation is no longer holding steady and has even slipped into reverse in some markets. 

In preliminary data, the IWSR added that total beverage alcohol (TBA) volumes across the leading 21 markets dropped by 2% in volume and 4% in value in 2025 – marking the first time in recent history that volume performance has fared better than value. 

Other signs that premiumisation may be faltering include TBA value falling for the first time since 2020. 

On consumers becoming more wary, IWSR MD and president, Marten Lodewijks said: “High inflation, political polarisation and international conflict have dampened consumer confidence, leading to a reduction in alcohol spending across most T21 markets. 

“This, coupled with consumers becoming more conscious and intentional in their alcohol consumption, is leading to people going out less and consuming fewer categories when they do.” 

Spirits focus 

Considering specific categories, the IWSR said the slowdown in premiumisation was especially evident in spirits, where the volume share of premium-and-above brands receded to less than 10%. 

Super-premium and above spirits dipped by 15% in value in 2025, compared with a 7% decline in standard-priced products. 

Wine did, however, remain positive, with higher-priced brands declining less than standard offerings, offering some hope for producers as consumers continue to trade up in this segment. 

On the general trend, Lodewijks said: “As a result of falling disposable incomes and weak consumer sentiment in many of the T21 markets, the previous trend towards premiumisation has slowed or, in some cases, gone into reverse. 

 “Across spirits, the premium-plus segments performed worse than lower tiers, as shoppers exercised caution.”