Preliminary figures from the IWSR show that global alcohol consumption declined in 2025 as economic and geopolitical pressures continued to bite. At the same time however, emerging markets, RTDs and younger wine drinkers provided glimmers of hope for the future of alcohol worldwide.
The data, which covers 22 key markets and represents around 75% of global volumes, shows that global alcohol volumes fell by 2% in 2025, while value dropped by 4%.
The downturn reflects a combination of pressures which continue to weigh on consumer confidence. High inflation, political instability and ongoing conflicts have all dampened discretionary spending in major markets such as the US and Brazil, while China – the world’s largest alcohol market – saw a sharp fall in value.
Stripping out national spirits however paints a more stable picture. Global value was actually broadly flat year-on-year, suggesting that international categories are holding up better than headline figures imply. This was the case in China, where declines were driven largely by weakness in national spirits such as baijiu.
From a category perspective, spirits was the worst performer overall, down 4% in volume and 9% in value, while wine volumes fell 4% and value declined 2%. Beer also slipped by 2% in volume, although value held steady.
RTDs were the standout performer, delivering 2% volume growth and 4% value growth, underlining their continued relevance with convenience-led and younger consumers.
IWSR president and MD Marten Lodewijks described 2025 as “a particularly difficult trading environment for the beverage alcohol industry. In addition to continued economic challenges, the imposition of sweeping US tariffs and subsequent retaliatory measures caused severe disruption across the sector.
“Continued increases in the cost of living also put further pressure on discretionary spending, which includes beverage alcohol purchases, while a growing consumer focus on health, wellness and moderation added further to the difficult market conditions.”
That moderation trend is particularly evident in wine, where longer-term structural challenges continue to weigh on volumes. Between 2019 and 2024, total still and sparkling wine consumption fell by 15% globally, with declines across all major markets including the UK.
Within that contraction however, there are signs of a more positive shift, particularly among younger legal drinking age (LDA+) consumers.
IWSR highlights that drinkers aged under 34 are becoming increasingly influential in key markets. They account for around 22% of wine drinkers in both the UK and Germany, and figures are even higher in markets such as the US and Sweden.
Crucially, these consumers are not simply replacing older drinkers on a like-for-like basis. Instead, they are reshaping the category through greater experimentation, higher engagement and a willingness to trade up.
Other bright spots within wine include sparkling, which continues to buck the broader downturn, as well as no & low alcohol alternatives.
Geographically, markets such as India and South Africa are offering encouragement. Both achieved gains in both volume and value in 2025, highlighting the importance of emerging regions in offsetting stagnation in mature markets.
Taken together, the data points to a market in transition rather than outright decline.
As Luke Tegner, IWSR’s head of global consulting, noted, the long-standing premiumisation trend has been “overshadowed” by price sensitivity, but not replaced entirely.
