Overview: Global travel retail (GTR) remains an exception to the alcohol industry’s current premiumisation downtrend according to new IWSR data. While total beverage alcohol value fell for the first time since 2020 by 4%, the channel saw value grow by 7% in 2025, outpacing volume growth of 5%. Scotch whisky is highlighted as the primary driver of this resilience within the spirits sector.
The Full Story
According to IWSR data, global travel retail (GTR) is an exception to the alcohol industry’s current premiumisation downtrend. Value is ‘clearly outpacing’ volume in global travel retail, IWSR has revealed. In a new report, IWSR revealed that global inflation has outpaced growth in alcohol price per litre (PPL) measure since 2020. IWSR believes inflation has had a distorting effect on the impact of premiumisation in the drinks industry.
Scotch whisky was highlighted for volume growth in GTR in 2025 with an increase of 10%. Japanese whisky (up 37%) and agave spirits (10%) were also noted for strong gains. Cognac (down by 11%) and flavoured gin (down by 7), however, both declined. IWSR projects Scotch whisky as the biggest incremental value opportunity in GTR spirits leading to 2030, ahead of agave spirits, gin, and Japanese whisky. IWSR projects Scotch to see an RSV (retail sales value) gain of more than US$400 million.
IWSR data also found that the ready-to-drink (RTD) and beer segments are showing the ‘strongest evidence’ of premiumisation in the alcohol industry. For RTDs, premium-plus volumes were up by 15% last year in 14 markets compared to 2024 volumes, while value was up by 21%. It is the only major alcohol category experiencing growth. The data for premium-plus RTDs was measured across 14 nations: Argentina, Australia, Brazil, Canada, China, Germany, Japan, Mexico, Russia, South Africa, Spain, Ukraine, the UK and the US.
What This Means
IWSR projects Scotch to see an RSV (retail sales value) gain of more than US$400 million. The super-premium tier stood out with a 10% increase, however IWSR pointed out a ‘ceiling’ for premiumisation in GTR with both ultra-premium and prestige declining. Charlotte Reid, IWSR senior insights manager, said that “it’s clear that GTR is experiencing genuine, rather than inflation-driven premiumisation; the GTR environment invites genuine premiumisation through dwell time, retail theatre or brand ambassadors giving a prompt to purchase.” She added: “The occasion is also different: in GTR, the consumer need is about buying something nice, different or unique for oneself or as a gift.”
IWSR forecasts 6% volume growth in premium-plus servings between 2025 and 2030. In what IWSR classifies as major developing markets (including India, China, Mexico and Brazil), premium-plus servings are expected to see growth of 13% over the same period. The US market is said to dominate volume growth prospects for premium-plus in the period, for Tequila, no-alcohol still and sparkling wine, American whiskey, cocktails and long drinks. In major developing markets, Tequila is listed for Mexico, Scotch whisky for Türkiye and India, and Indian whisky in India. For the latter, Indian whisky is now ahead of Scotch single malt in volume and value.
Consumer Takeaway
IWSR’s global head of consulting, Luke Tegner, noted that “the premium-and-above decline for spirits is a sign that consumers are scrutinising expensive spirits lines more closely than they are for beer or RTDs.” He added: “This might mean, for example, choosing a no-age-statement single malt from a known distillery over a 12-year-old expression,” he added. The average gap between the price of an average spirits serve and that of the average RTD serve is US$0.74, according to IWSR, with RTDs having the highest price per serve globally out of all alcohol categories. IWSR noted that RTDs can justify its premium price through how the category aligns with various consumer needs, from convenience to flavour variety and flexibility. “This challenges the argument that volume decline of spirits or wine is purely a price sensitivity issue,” said Tegner. “Consumers are looking for value in the truest sense, not cheapness. The outlay for an RTD may be, say US$5, which means less money spent per purchase versus, for instance, US$20-30 for a bottle.”
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