Global travel retail report 2025 part one
Global travel retail flourished in 2024, with rising international passenger numbers driving a boost in spirits sales. Melita Kiely, Joe Bates and Kevin Rozario explore the key trends and standout categories powering the channel’s recovery.
*This feature was originally published in the September issue of The Spirits Business magazine.
Good news for the global travel retail (GTR) sector: international traveller numbers were up in 2024. Data from the International Air Transport Association (IATA) showed total air passenger traffic in 2024 (including both international and domestic flights) grew by 10.4% in 2024 compared with 2023, and is now 3.8% above pre-pandemic (2019) levels.
Furthermore, the IATA’s annual World Air Transport Statistics Report, which covers more than 240 international airlines, showed that both business and first-class travel was up (11.8%), along with economy travel (up by 11.5%).
More travellers obviously means more spending opportunities in duty free. Spirits reaped the rewards of this last year, with sales up by 6% in value and 5% in volume in GTR. This outperformed the domestic market, with 0% value and 2% volume, IWSR figures show. But with the cost-of-living situation continuing to stretch household incomes, what impact is this having on GTR sales?
“Consumer spending was more polarised in 2024, with 56% of revenue coming from entry-level and prestige price tiers,” notes Charlotte Reid, IWSR senior insights manager – GTR. “The highlights shift towards both affordability and indulgent consumption. This trend is expected to continue for the next four to five years. 2024 saw a ‘squeeze’ in the core premium segment, but super-premium-and-above remains resilient as shoppers continue to use the GTR channel for purchasing indulgent treats.”
A strong year
Perhaps it’s something to do with the holiday occasion, but liqueurs and bitters/apéritifs had a particularly strong year in GTR. The categories continued to grow in all regions by 11% in value sales, and 9% in volume from 2023 to 2024. “These categories have taken advantage of the ‘aperitivo moment’, and provide an easy-to-prepare drink, lower-ABV and perceived better value for money,” Reid adds. “Anecdotally, some brand ambassadors say travellers are buying these to take and drink on holiday.”
Geographically, and despite multiple geopolitical tensions, Europe “remains resilient”. The UK, Ireland, Türkiye, and Spain all performed well, partly due to Europeans prioritising travel in the EU and other neighbouring countries.
However: “Scandinavia markets are under pressure due to currency fluctuations, with travellers reducing spend or trading down,” Reid notes. “Growth is muted in North America, but opportunities are evident in the rest of the Americas due to increased tourist traffic, Caribbean cruises, and investment. Asia Pacific’s slower recovery continues. Instability has led to less consumer spending, and depressed demand for international travel – noticeably in China, South Korea and Hong Kong.” Leading the charge in Asia Pacific is India, followed by Singapore, Australia and New Zealand. This has been aided by international travellers spending in the prestige-plus price bracket.
Meanwhile, Africa and the Middle East grew by 5% in value, but dropped by 1% in volume, because of increased transit flights into Qatar and Dubai, with Indian and Chinese passengers seeking luxury purchases.
There have been some surprising developments for Reid in the past 12 months, too. “Lately I’ve been impressed by the volume growth and emerging opportunities in Japan, the UAE, South America, and the Caribbean,” she notes. “In Japan, depreciation of the yen to a 40-year low against the US dollar has made the country more affordable for foreign travellers. Inbound tourism is expected to reach nearly 48 million visitors this year (source: Tourism Economics).” There has also been double-digit growth in traveller numbers to Middle Eastern nations like the UAE, Egypt, and Saudi Arabia, which Reid says is down to the region’s “rich cultural heritage, world-class hospitality, and unique experiential attractions”.
Reduction in activity
She continues: “Additionally, I’ve been seeing clear signs that middle price points are being squeezed. Compared with 2023, 2024 saw a noticeable reduction in promotional activity, accompanied by shifts in traveller spending behaviour. We’re seeing a growing polarisation in spend, with travellers either trading up to prestige and prestige-plus tiers, or seeking strong value at standard and entry-level price points. This trend was persistently observed throughout the last research cycle, and it’s expected to persist over the coming years.”
By 2034, spirits in GTR are forecast to grow at a compound annual growth rate of 3%. So, what does the future of spirits look like in GTR? Reid highlights four categories that will do well in the channel: Japanese whisky, liqueurs, Cognac, and sparkling wine.
“The growing popularity and success of Japanese whisky is evident in GTR, as more travellers engage with the category,” says Reid. “It is the fastest-growing whisky category, at a 34% volume year-on-year change. The rise of liqueurs and bitters/apéritifs and desire for signature/craft cocktail drinking and ‘affordable indulgence’ will continue. Cognac is moving away from traditional occasions, such as gifting, particularly in markets like China, towards more social, image-led settings, including nightlife and clubs in regions such as South Africa, the US and Italy.”
It looks like a mostly positive outlook – which in a turbulent era will be hugely welcomed by the industry, no doubt.
In the first half of our annual GTR report below, we delve into whisky, Tequila, Cognac and brandy for a closer look at their performances.
Whisky: Scotch struggles but GTR investment continues
Scotch whisky in travel retail, as well as single malts such as The Singleton and Talisker, recorded a substantial 24.3% drop in its Asian travel retail sales in the 12 months ending 30 June 2025, a decline the UK multinational attributed to softer consumption and continued inventory destocking by retailers.
Despite these challenging market conditions, Scotch whisky players continue to invest in the travel retail channel, especially in the premium-plus price tiers. The Macallan, one of the best-selling single malts in travel retail, has been particularly active in the first half of 2025, opening new boutiques at London Heathrow and Los Angeles airports in May and July, respectively. In January, the Speyside distillery also unveiled the fourth expression in the brand’s Harmony Collection, the travel retail-exclusive Guardian Oak, which was matured in Sherry-seasoned American and European oak casks.
Inclement market conditions notwithstanding, new single malt releases will also not be in short supply at this month’s TFWA World Exhibition. For example, William Grant & Sons will be leveraging Glenfiddich’s recent partnership with motoring brand Aston Martin’s Formula One team, with the release of Glenfiddich 19 Years Old, a 43% ABV whisky matured in a combination of European and American oak casks, and priced at around £130 (US$175).
US whiskey recorded high-single-digit growth in travel retail last year, according to IWSR Drinks Market Analysis, outpacing Scotch. But the outlook for this subcategory has worsened considerably in 2025, largely as a result of the aggressive position on tariffs and geopolitics taken by the US Republican administration. International tourist arrivals to the US have tumbled, and Canadian border store operators have reported significant declines in sales.
Jack Daniel’s owner Brown-Forman reported a 7% decline in travel retail sales in the company’s full-year results ending 30 April 2025, noting that higher-priced super-premium expressions of Jack Daniel’s had been struggling. Nevertheless, the company continues to pursue a premiumisation strategy for its flagship brand, launching an exclusive Jack Daniel’s collection of single barrel bottles for Carnival Cruise Line customers in May, in collaboration with cruise retailer Harding+.
Irish whiskey sales rose by nearly 12% in travel retail last year, the highest rate recorded by any brown spirits category. The progress of Proximo Spirits-owned Bushmills single malt is typical of a growing sector enjoying significant success. “Our Bushmills Irish whiskey business has been going great guns so far this year,” insists Roy Summers, the company’s head of GTR.
“In May, during TFWA Asia Pacific, we launched the Bushmills World Wood Series Travel Retail Exclusive 18 Years Old Single Malt, which follows the releases of the 12-year-old in 2024, and the 15- and 21-year-old expressions in 2023,” he adds. “This brings our channel-exclusive range to six expressions, answering the shopper need for something different in the channel.”
He adds: “In April, we partnered with [distributor] Monika Alcobev in India for a travel retail-exclusive Bushmills range, and we are now working closely with Hyderabad Duty Free, Delhi Duty Free and Ospree Duty Free in Mumbai, to build the brand’s presence in this rapidly growing market.”
Tequila powers ahead in GTR
Tequila was by far the fastest-growing white spirit in travel retail last year, according to IWSR, as the category continues to grow quickly outside its North American stronghold, with the UK, India, Thailand and South Korea all delivering strong sales of premium-plus Tequilas.
The category’s momentum in 2025 has been boosted by sizeable omnichannel campaigns by larger players such as Diageo (Don Julio) and Bacardi (Patrón).
Patrón’s latest prestige innovation, Patrón El Alto, a blend of extra añejo, añejo, and reposado Tequilas, launched last year, has already become the second best-selling prestige-plus Tequila in the channel, commanding almost a 30% market share. In the first half of 2025, El Alto was introduced into the fast-growing India duty free market, with high-profile activations at Delhi and Mumbai airports in collaboration with Punjabi music star Karan Aujla.
In Europe, the focus of the El Alto campaign switched to dance music during the peak summer holiday months, with promotions at UK and Spanish airports running in partnership with top Ibiza nightclub Ushuaïa Ibiza. Anyone buying a bottle of Patrón El Alto was offered the chance to win a two-night stay at the Ushuaïa Ibiza Beach Hotel during the 2026 season, including backstage access to the iconic ANTS party nights, which is revered by club goers.
Meanwhile, in April, Diageo Global Travel partnered with Korean DJ-turned-fashion-designer Peggy Gou to launch a limited edition Don Julio 1942 bottle at airports globally. Gou, known for her edgy style and influence across music, fashion and art, left her distinctive mark on the bottle design. Presented in packaging that includes a bespoke illustration by Gou on the inner carton, the design blended a streetwear-inspired theme with sophisticated motifs.
In the US in July, Campari Group showcased its Espolòn Tequila brand at Miami airport in partnership with Duty Free Americas. As the official Tequila of local football club Inter Miami CF, Espolòn chose a football theme for the activation, which featured in-store tastings, immersive displays with digital video content, brand ambassador-led storytelling and gifts with purchase, including Espolòn-branded jerseys.
The culmination of the activation took place on 7 July, when travellers were surprised with a live appearance by Inter Miami CF player Ryan Sailor. Fans who bought a bottle of Espolòn, Blanco, Reposado, Añejo, or Cristalino had the opportunity to meet the player and receive a signed jersey.
Beyond airports, Tequila is also demonstrating its potential in the fast-growing cruise channel, which is forecast to carry 37.7 million guests in 2025 (according to the Cruise Lines International Association). In July this year, Starboard Group, one of biggest onboard cruise retailers in the world, partnered with Casa Maestri and Switzerland’s Invicta Watch Group to launch a new expression, Invicta Tequila, on 26 cruise ships.
“Luxury Tequila has become our third-largest category in the liquor segment, and is growing at over 30% year over year,” says a Starboard spokesperson. “A key driver of this growth is the cultural connection. Many of our itineraries include Mexico as a destination, and guests are eager to bring home a piece of that experience.
This has led to strong performance from artisanal brands like Casa Maestri, which resonate with guests seeking authenticity and craftsmanship,” she adds. “The rise of sipping Tequilas, particularly aged expressions like añejo and extra añejo, has also contributed to the category’s premiumisation onboard.”
Cognac battles China duty free ban
The duty free Cognac business has faced an incredibly challenging 2025, having effectively been shut out from its largest travel retail market, China, since December 2024. In January last year, the Chinese Ministry of Commerce (Mofcom) launched an investigation into whether EU-made brandies were being sold in the Chinese domestic market at artificially low prices, undercutting locally produced brands.
In the West, the investigation was widely perceived to form part of a wider dispute between China and the EU over tariffs on Chinese electric vehicles. The investigation broadened as the year went on, and in December 2024, duty free retailers were prevented from resupplying their stores with Cognac, their most profitable international spirit category.
The impact of the move has been sizeable, as duty free accounts for 20% of the entire Cognac business in China, according to the Bureau National Interprofessionnel du Cognac. In its Q1 2025/26 results, for instance, Rémy Cointreau noted a 6.5% drop in its Asia Pacific duty free sales due to “disruptions in the China duty free channel”, while Pernod Ricard, the owner of Martell Cognac, attributed a 13% global travel retail sales drop in the year to 30 June 2025 because of the same issue.
In July, Mofcom ended its long-running anti-dumping investigation, introducing five-year tariffs on EU brandies ranging from 27.7% to 34.9%. However, many leading producers, including Hennessy, Martell and Rémy Martin, struck a deal on minimum import prices. As business normalises, industry experts predict duty free supplies will resume, but no official announcement of a lifting of the ban has been announced. In its 2025 results, Pernod expects this space to return to growth in the next fiscal year when Martell is able to re-enter China’s airports in its second quarter (October-December 2025).
Outside of China, the major Cognac houses have run some eye-catching airport activations this year, focusing on the more affordable but still premium VSOP quality. For example, in May, Moët Hennessy leant into its partnership with National Basketball Association (NBA) star LeBron James by creating an immersive promotion campaign at key Asian airports to support the launch of the travel-retail exclusive expression, Hennessy x LeBron James VSOP.
The commemorative release celebrated James’ 20th NBA season, playing with his son, Bronny, the first time a father and son have played in the NBA together, and his 40th birthday last December. The limited edition VSOP showcased James’ image and a custom logo, highlighting the partnership between the Cognac house and the basketball star.
In the same month, Rémy Martin unveiled a collaboration with contemporary artist Anish Kapoor, introducing a limited edition Rémy Martin XO decanter alongside an exclusive artwork. Travel retail was at the heart of the launch, with the Rémy Martin XO Anish Kapoor Limited Edition being showcased through immersive activations in global hubs.
The rollout began in Hong Kong with high-profile displays at the West Kowloon High Speed Rail Link station, linking the Special Administrative Region to the Chinese mainland, and Hong Kong International Airport, in partnership with Avolta and China Duty Free Group. Further activations followed at London Heathrow, Zayed International, and Paris Charles de Gaulle airports. Featuring Kapoor’s ‘Mirror Infinite Possibilities’ theme, the installations invited travellers into a sensorial journey combining digital engagement, striking visual displays, and experiential tastings.
Brandy: Tourism boom gives the spirit momentum
Brandy might lack the globally recognised brands that Cognac boasts, but more value-conscious shoppers travelling in key markets who have an eye on price as well as quality have given this less showy brown spirit category a boost over the past year.
It’s an opportunity brandy producers are keen to seize, as travel retail’s upscale environment and more eclectic, affluent customers afford them the opportunity to persuade them to trade up to higher-priced expressions.
For instance, Bruno Teixeira, global travel retail director at Spanish wine and brandy producer Familia Torres, reveals its brandy portfolio has enjoyed “consistent growth” this year in key European and Asian hub airports. “In terms of product, we’ve experienced strong demand for flagship products such as Torres 10 and Torres 15, appealing to both returning and new travellers,” he says. “We also noted resilience in premium segments, with higher-value SKUs outperforming expectations as travellers seek quality and authenticity.”
For rival Spanish brandy producer Osborne Group, a key challenge for the brandy category is to rejuvenate its fusty image among younger legal-drinking-age consumers. According to GTR manager Cathy Rolland, at the TFWA World Exhibition the company will unveil a refreshed visual identity for its Carlos I brandy range, which aims to “balance heritage with contemporary appeal”. Also making its debut at the show is Veterano & Cola, a ready-to-drink (RTD) version of another Osborne-owned brandy.
In tourism terms, Italy enjoyed a record-breaking year in 2024, receiving 65 million international visitors, a total the ever-popular Mediterranean country is likely to match or exceed this year.
Grappa, Italy’s traditionally potent grape spirit, has benefitted from this travel trend, with Food Accademia, the travel retail distributor of Castagner Grappa, revealing the brand’s year-to-date sales have risen by 40% in 2025.
“Castagner’s attention to ageing produces elegant, refined expressions that are perfectly suited to the premium positioning expected in travel retail,” says Food Accademia CEO Fabrizio Canal. “Its packaging is also eye-catching and travel-friendly, with formats that comply with security regulations, which is a key factor in airport sales.”
Like Italy, Greece is also experiencing its own tourist boom, with the country’s airports enjoying a 10% increase in travellers in the first half of 2025. Rémy Cointreau-owned Metaxa, Greece’s brandy-based flavoured spirit, has capitalised on these propitious market conditions by launching several new products aimed at travellers in August, the peak month for holidays throughout Europe.
The new additions include: Metaxa 12 Stars Zeus Limited Edition, which features packaging targeted at younger legal-drinking-age consumers; the more premium travel retail-exclusive Metaxa 7 Stars Greek Riviera Limited Edition, with its holiday-themed packaging aimed squarely at tourists; and finally, two new Metaxa RTD variants: Peach Spritz and Ginger & Lime Long Drink, again aimed at the younger adult crowd.
Related news
Sierra takes RTDs to UK travel retail
