Global beverage alcohol volumes declined for a third consecutive year in 2025, with wine volumes falling below spirits for the first time and ready-to-drink (RTD) products emerging as the sector's main growth driver, according to new data from IWSR.
Total beverage alcohol (TBA) volumes fell by 2 per cent last year, equivalent to around 500 million nine-litre cases, as beer, wine and spirits all recorded declines amid what IWSR described as a "major reset" in consumer drinking habits.
Wine volumes dropped 5 per cent in 2025, extending a long-term downward trend, while spirits volumes fell 3 per cent and beer declined 2 per cent. RTDs were the only major alcohol category to register growth, with volumes rising 3 per cent.
"The global beverage alcohol market is undergoing a major reset," said Marten Lodewijks, managing director and president of IWSR.
"Consumers aren't abandoning alcohol, but they are being more intentional about the frequency and intensity with which they drink it. While volumes are still broadly declining, hotspots of growth and opportunity persist."
The RTD category continued to outperform the wider market despite recording its first annual decline in the US since 2015. Premium-and-above RTD volumes increased by more than 15 per cent, while the UK was identified as one of the leading growth markets alongside Spain and the Netherlands.
"RTDs remain the most dynamic space in beverage alcohol," said Lodewijks. "The category is maturing in its biggest markets, while simultaneously igniting in new ones."
Within spirits, performance was mixed. Global whisky volumes rose 2 per cent, driven largely by continued growth in Indian whisky, while Irish whiskey also increased 2 per cent and Tequila volumes grew 2 per cent. However, Scotch whisky volumes declined 2 per cent, Japanese whisky fell 3 per cent and vodka was down 2 per cent.
India remained the strongest growth market globally, with total beverage alcohol volumes increasing by 4 per cent in 2025. Currently the world's eighth-largest beverage alcohol market, the country is forecast to become the fifth largest by 2035.
Beer volumes declined by 2 per cent globally, although premium beer continued to perform well, recording 1 per cent growth thanks to strong demand in markets including India, Vietnam, China and South Africa.
Despite wine's overall decline, IWSR highlighted growth in sparkling wine segments such as Prosecco and Crémant, alongside continued momentum in alcohol-free wine.
The moderation trend also continued to support growth in no-alcohol categories, with volumes of no-alcohol beer and spirits both increasing by 8 per cent, while no-alcohol still and sparkling wines each recorded 13 per cent growth.
The findings follow IWSR's recent research showing strong growth in no- and low-alcohol wine across major global markets, driven largely by younger consumers seeking alternatives that align with health and wellness trends.
Lodewijks said the performance of no-alcohol products underlined a lasting shift in consumer behaviour.
"No-alcohol is still small in volume terms, but the growth rates and the speed of premiumisation within these segments tell us something important: the mindful drinking consumer is here to stay, and they're willing to pay for quality alternatives."