Overview: Japanese whisky emerged as the standout spirits segment in global travel retail last year, posting significant value growth while Cognac experienced one of its worst declines in several decades. Spirits volumes rose by 6% globally with a 7% value increase, driven largely by whisky which saw a 12% value rise.
The Full Story
Japanese whisky was the standout category in global travel retail (GTR) last year, with value growth reaching 44% and volumes up by 37%. Charlotte Reid, IWSR senior insights manager GTR, noted that this growth was driven by strong cultural cachet, traveller curiosity, and a genuine willingness by consumers to spend at or above the premium tier. Scotch and American whiskey both posted 10% value gains in 2025, while Irish whiskey rose by 11%. Irish whiskey momentum is supported by a growing number of new distilleries successfully gaining traction with curious travellers.
In contrast, the Cognac segment suffered one of its worst declines in several decades. Cognac/brandy volumes fell by 6%, while value was down by 8% due to structural pressures. The premium XO segment was hit hardest in 2025 as traditional gifting occasions weakened, though VS benefitted from growing use in cocktails. Another strong performer was agave spirits, which recorded a 10% volume gain and a 28% value rise. Sales were driven by brand loyalty rather than category exploration, with consumers entering duty free knowing which brand they want to buy.
Gin was flat in volume terms but value grew by 7%, driven by craft and local products in Nordic countries, the UK and Asia Pacific. Flavoured gin decreased as consumers shifted to vodka and ready-to-drink (RTD). Vodka saw an increase of 7% in volume and a double-digit value gain. Meanwhile, rum volumes fell 6%, but value increased, suggesting the category is benefiting from drinkers trading up, led by dark variants. For both wine and spirits, all four regions covered by IWSR recorded value growth, with Europe and Africa/Middle East leading at 11% gains.
What This Means
Looking to 2030, IWSR believes Scotch will dominate the growth opportunity in GTR, while Japanese whisky and Irish whiskey will lead momentum. Cognac/brandy is projected to be essentially flat in value terms. The industry faces significant challenges including the Middle East conflict, airspace closures, flight disruption, fuel costs, and cost-of-living pressures. IWSR expects Africa and the Middle East to take the biggest hit, with the region facing a single-year volume decline of up to 22%, and recovery unlikely before 2028. Europe is highly exposed to the Middle East disruption, with its recovery expected to be the slowest of the regions in the years ahead.
Consumer Takeaway
This market data offers insight into shifting consumer behavior within duty-free environments. The standout performance of Japanese whisky indicates a willingness among travellers to spend at premium tiers driven by cultural interest. Agave spirits highlight the importance of brand loyalty over category exploration, while the Cognac segment suggests recovery depends on engaging travellers through experiential retail and repositioning beyond gifting into self-purchase occasions. Scotch is positioned to dominate growth opportunities by 2030, providing a stable outlook for future availability.
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