High-end spirits plunge 28% in China
Luxury spirits saw nearly US$1 billion wiped off their sales value last year, while the US overtook China as the segment’s second-biggest market.
IWSR’s 2025 Status Spirits Strategy Study revealed that the value of ‘status spirits’ – products retailed at over US$100 per bottle – declined by 8% in 2024.
“Having grown consistently since 2015, barring a dip during the Covid-19 pandemic, the overall value of status spirits fell by 8% last year,” said Guy Wolfe, IWSR senior insights manager.
“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.”
Sales of high-end spirits in China plummeted by 28% in value last year.
After duty free, the US became the second-biggest market for status spirits, despite a value decline of 5% last year.
Global duty free sales of status spirits grew by 5% in value last year, with IWSR forecasting a compound annual growth rate (CAGR) increase of 3% between 2024 and 2029.
In comparison, China is forecast to see a 3% CAGR decline for status spirits over the same five-year period, while the US is predicted to drop by 3% due to ‘anticipated reduced demand’ for agave spirits.
Category performance
High-end Cognac suffered a 14% value decline in 2024, due to ‘tough trading conditions’ in China, IWSR noted. Sales were hit by China’s anti-dumping investigation, which led to the removal of Cognac from the country’s travel retail channel.
Cognac’s value share of status spirits decreased from 51% in 2019 to 36% last year, lagging behind Scotch’s 38% share.
IWSR noted a 8% value drop for Scotch whisky in 2024, which it described as ‘remaining resilient’ with blends slightly outperforming malts.
“Having become the leading status spirits category in 2023, Scotch consolidated its position in 2024,” Wolfe said. “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.”
IWSR noted that demand for high-end Tequila appears to have peaked, with the number of new product launches significantly down last year.
Meanwhile, Japanese whisky saw growth driven by travel retail and new channel exclusive.
American whiskey and Irish whiskey both expanded but these categories ‘face risks of future oversupply’, IWSR warned.
Scotch to lead future growth
“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,” Wolfe added. “Weaker US demand will see agave spirits fall back.”
High-end baijiu continues to lead the status spirits category, with 85% of total global value in 2024. The Chinese spirit saw a 6% value gain last year, but IWSR expects ‘major challenges’ for the sector in the future, including economic uncertainty and new government austerity rules announced in May 2025.
Wolfe says new product development is key to driving growth of status spirits.
“With the current challenges of oversupply, it is essential that brand owners limit both the number and volume of new releases,” he explained.
“In today’s market, status spirits buyers are more selective and value-driven, seeking not just scarcity and prestige but also a compelling story that reinforces quality and authenticity.
“To succeed, brand owners must go beyond age statements and packaging to deliver products that genuinely connect with consumer values and aspirations.”
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