Global spirits volumes fall 3% as Indian whisky and ultra-premium tequila advance

National spirits deepen the global decline

Global spirits volumes declined 3% in 2025, according to IWSR data published in 2026 and reported by HorecaNews. The contraction was steeper than the 2% fall across all alcoholic beverages, equivalent to about 500 million nine-litre cases. It was the third consecutive year of lower total alcohol volumes.

The headline spirits figure was heavily influenced by national spirits, particularly Chinese baijiu. Excluding these products, global spirits volumes were broadly stable. That distinction points to a market in which results depend increasingly on category, price tier and geography rather than a uniform retreat in demand.

India carries whisky while Scotch retreats

Whisky was among the categories that expanded, with worldwide volumes rising 2%. Growth came almost entirely from Indian whisky sold in India, where the segment advanced 4% in 2025. IWSR also identified gains in premium tiers and rising interest in Indian single malts, although lower-priced products continued to account for most of the market.

Performance elsewhere was mixed. Irish whiskey increased 2%, while Scotch whisky declined 2%, Japanese whisky fell 3% and Canadian whisky lost 1%. The overall growth number therefore reflects the scale and momentum of India rather than broad-based improvement across the principal whisky-producing origins.

Tequila volumes also rose 2% globally. Growth was slower than during the strong expansion of 2021 and 2022, but the top end continued to outperform: ultra-premium tequila gained 8%. For producers and distributors, the result indicates that consumers remain willing to spend on selected high-end agave products even as the wider spirits market contracts.

Gin growth shifts toward value segments

Global gin volumes increased 1%, but the drivers differed from those of the category’s earlier boom. IWSR said growth came mainly from locally produced low-price and value gin in emerging markets. Premium-plus gin declined 2% worldwide, despite positive results in Brazil, India, Japan and France.

Bitters and spirit aperitifs increased 2% by volume. Lower-priced and standard bitters led growth in sub-Saharan Africa and South America, while spirit aperitifs continued to expand globally. Europe remained central to the latter category, accounting for more than two-thirds of worldwide spirit aperitif consumption and delivering a positive performance in 2025.

Cognac records the steepest contraction

Several large international categories remained under pressure. Vodka volumes fell 2% and rum declined 1%, although IWSR noted that the rum market was still above its 2019 level. Cognac and Armagnac recorded the sharpest fall, down 7%, following similar contractions in 2023 and 2024.

Regional exceptions show why global averages provide only a partial guide for suppliers and traders. South Africa delivered double-digit growth in both rum and Cognac/Armagnac during 2025, even as their worldwide totals declined. Across the market, premiumisation was similarly uneven: it supported Indian whisky and tequila, but did not prevent a global fall in premium-plus gin.

The 2025 data divide the industry into distinct pockets of resilience and weakness. India was the main engine for whisky, Europe retained its weight in spirit aperitifs, and emerging markets supported accessible gin and bitters. Producers, importers and distributors therefore face a market where portfolio exposure to individual countries and price points may matter more than the 3% global decline alone suggests.