The global high-end spirits category has suffered a sharp downturn, with almost US$1bn wiped from its value in 2024, according to new data from IWSR’s 2025 Status Spirits Strategic Study.
High-end, or ‘status’ spirits, which IWSR defines as those retailing for more than US$100 per bottle, have not been immune to the pressures impacting the wider beverage alcohol market.
Guy Wolfe, Senior Insights Manager at IWSR said: “Having grown consistently since 2015, barring a dip during the Covid-19 pandemic, the overall value of status spirits fell by eight per cent last year.
“Underlying macroeconomic weakness in most major markets, combined with greater uncertainty due to the threat of US tariffs, kept consumer and investor confidence low during the year and restricted spend. In contrast to the previous year, virtually all price bands experienced declines, even the very highest.”
China remains the largest single market for high-end spirits but continues to drag down global performance. Status spirits sales there fell by 28 per cent in value during 2024 allowing the United States to overtake it in value terms despite its own five per cent drop.
Duty free sales, meanwhile, are rebounding, up five per cent in value last year. IWSR forecasts a three per cent compound annual growth rate (CAGR) for the duty free channel between 2024 and 2029, compared with a projected flat performance for China and a three per CAGR decline for the US, largely due to weaker demand for high-end agave spirits.
“The duty free channel is benefitting from a broader trend toward experiential luxury, and is expected to be a major contributor to future value generation to 2029,” Wolfe said.
“Meanwhile, smaller markets like India, Vietnam and Malaysia are also set to play a greater role in future status growth.”
Cognac and Scotch
Cognac continues to struggle under the weight of weak Chinese demand, with status-level Cognac sales falling 14 per cent in 2024, following an anti-dumping investigation and restrictions on restocking in China’s duty free sector.
Wolfe said: “Having become the leading status spirits category in 2023, Scotch consolidated its position in 2024.
“Despite losing value as most key markets struggled, duty free was a bright spot. Lower US tariff exposure and the recent UK/India free trade agreement should help support sales moving forward.”
Scotch saw value decline by eight per cent, with blended Scotch outperforming malts. The US market for high-end Tequila, once a standout performer, also appears to have peaked, with new product launches slowing amid consumer fatigue. Japanese whisky continued to grow, supported by duty free sales and channel exclusives, while US and Irish whiskey expanded but IWSR says these segments now face the risk of oversupply.
“Scotch is expected to lead future prestige and prestige-plus spirits growth, with US and Japanese whisky also making progress, and Cognac set to recover from 2027,” said Wolfe. “Weaker US demand will see agave spirits fall back.”
Looking ahead
Despite the downturn, IWSR notes that the longer-term outlook for the category remains positive, with sales expected to return to moderate growth over the next five years.
Wolfe said: “Nonetheless, softer demand and greater availability of product means competition is now inevitably fiercer.
“A wider range of players with aged stocks and the rise of newer status categories like agave have created a more fragmented marketplace. Space on shelf and in buyers’ minds is thus very limited.
“Brand owners who invest through the downturn and focus on limited, high-quality innovation will be best positioned to grow and gain share in the future.”