World: Total alcohol volumes fall by 1% in 2024

Total beverage alcohol (TBA) volumes fell by 1% last year, but spirits outperformed beer and wine, according to IWSR Drinks Market Analysis data.

IWSR noted that alcohol volumes across the world’s top 20 markets were now 2% lower than in the pre-pandemic year of 2019. The 1% decline for TBA excludes volume sales of national spirits, such as Chinese baijiu and Japanese shochu.

Between 2019 and 2024, spirits (excluding national spirits) and the ready-to-drink (RTD) segment were the only categories to experience growth, with beer volumes down by 2% and wine plunging by 21%.

The top 20 markets combined fell short of their forecast TBA volumes of 1%-2% growth in 2024, which equates to more than 300 million nine-litre cases. The US, China, India and Europe were named as underperforming markets.

“On-trade closures and economic weakness prompted a 4% downturn in China TBA volumes last year, hitting the global market for beer, Cognac and, to a lesser extent, Scotch,” said Emily Neill, chief operating officer research and operations, IWSR.

“A vibrant Indian market had been expected to partially offset some of these losses. But, while the country certainly posted better results than elsewhere, its performance was nonetheless below expectations.”

Spirits volumes in 2024 declined by less than 1% (excluding national spirits), which IWSR described as the ‘best category performance after RTDs and cider’.

Last year, spirits volumes suffered a 3% drop with the inclusion of national spirits, which has seen a ‘long-term decline’.

In comparison, wine volumes fell by 4% last year and beer dipped by 1%.

The performance of spirits was hit by a 4% volume drop in the US, where agave spirits were the only major subcategory to grow. Volume losses were also seen across most of Western Europe and Latin America, as well as China, where the market was ‘depressed by a weak economic outlook and low consumer sentiment’, IWSR noted.

However, spirits managed to grow in other Asia Pacific countries, with India and the Philippines singled out.

Only five of the top 20 markets – India, Russia, the Philippines, Japan and Thailand – posted an increase in international spirits volumes in 2024, with India adding the most volume and the Philippines showing the highest percentage growth.

“Excluding national products, the spirits category outperformed wine and beer, but most volume growth was localised, derived from entry-level Indian whisky in its home market and value gin in the Philippines,” said Neill.

“The super-premium-and-above segment experienced the largest volume decline at 3% as consumers cut back on luxuries and traded down. Weak sentiment pervaded among even the most affluent of buyers.”

IWSR noted that while agave spirits have been losing momentum in the US and Mexico, the category continues to expand.

Meanwhile, Indian whisky is also seeing success, with the single malt subcategory making ‘big gains’ in its home market. The popularity of the Spritz serve is also helping to boost apéritifs.

Furthermore, the no-alcohol ‘spirits’ category continues to experience ‘strong growth’ across the top 20 markets, outpacing full-strength spirits, despite only holding a small share of total spirits volumes.

RTDs posted a volume gain of 2% in 2024, with all of the top 20 markets expanding, except for Australia, China, India and the UK.

“The RTD category is a broad church of segments, concepts and products, with varied results for the year,” explained Neill. “Overall, though the category has recorded another year of expansion.

“RTDs in 2024 have again been a focus of considerable activity from brewers looking beyond beer, as well as diversification from wine and spirits players, and collaborations between spirits franchises and soft drinks brands.”

Neill continued: “Despite some glimmers of hope, the low points were more evident than the positives during 2024.

“The shift away from super-premium-plus spirits, the ongoing economic weakness in China depressing demand, and the continued plight of wines in key markets all combined to mean that the alcohol category failed to meet modest expectations last year.

“What is more, 2025 looks set to bring choppier waters, with the sector on the front line of a trade war. The outlook remains unpredictable for the year as the threat of tit-for-tat tariffs could potentially trigger dramatic shifts in alcohol choices.”

After months of threats, US president Donald Trump unveiled an economic plan that includes a global 10% tariff.

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