How is the beverage industry doing—and what lies ahead? While the answers are complex, the overall outlook is optimistic, according to IWSR, the leading authority in global drinks market analysis.
Where We Left Off
In 2024, IWSR reported stagnation in traditional markets such as Europe, Japan, and Canada, all experiencing widespread declines. In contrast, strong growth was forecasted in emerging regions like India, China, Mexico, Brazil, and South Africa.
Emerging Markets and Premiumisation
Data from 2025 confirms an ongoing trend: as developing countries see rising average incomes, the beverage industry gains ground. At the same time, we’re witnessing a general drop in consumption volumes but an increase in revenue—driven largely by premiumisation. In short: people are drinking less, but drinking better. In 2024, global alcohol volume fell by 1%, but total value rose by 1%.
A Promising Outlook
According to IWSR, the global market is expected to grow by $16 billion over the next five years—and by $34 billion over the next ten. This is the first time the company has extended its forecasting this far. Despite geopolitical uncertainty complicating strategic planning, the projections remain largely positive.
India, South Africa, and Brazil Lead the Way
India posted a 6% growth in alcohol volumes and a 9% rise in value in 2024, with beer and whisky as standout performers—confirming the country’s central role in the global beverage industry. South Africa (+3% volume, +10% value) and Brazil (+1% volume, +5% value) also showed strong momentum.
Spirits: Mixed Results
The spirits category faced a mixed year in 2024, with global volumes down 2%. However, scotch whisky and tequila were key in holding the sector steady. Once again, India proved vital: scotch sales there rose 6% in volume and 7% in value. IWSR forecasts that India will become the largest scotch whisky market in the world by 2027. Tequila also showed strength beyond its native Mexico, growing by 2% in volume and 4% in value across international markets.
Beer: A Win for Premium and No-Alcohol
Premiumisation played a crucial role in beer’s performance. While overall consumption declined, the “drink better” trend drove gains in key markets. In China, premium beer volumes rose 1%, while super-premium beer grew by 2% in the U.S. Among beer styles, stout stood out: +15% in the UK and +5% in the U.S. (volume).
No-alcohol beer also performed exceptionally well, driving growth in the non-alcoholic beverage segment with a global 9% volume increase in 2024. Based on current trajectories, IWSR predicts that no-alcohol beer will surpass ale by the end of 2025 to become the world’s second-largest beer category.
Winners and Losers: Hard Tea Up, Hard Seltzer Down
2024 was a good year for ready-to-drink beverages (+2% in volume, +5% in value) and especially for hard tea, which grew 31% in volume in the U.S. On the other hand, hard seltzers continued to decline globally. Finally, there was good news for cocktails and long drinks, which saw gains across most major markets.
