Japanese whisky up 44% as Cognac slumps

Data from IWSR revealed spirits volumes rose by 6% in 2025 while value increased by 7%.

Whisky was the growth driver for GTR last year, with value up by 12%.

IWSR called Japanese whisky the “standout” of all categories, with 44% value growth and volumes up by 37%.

Scotch and American whiskey both posted 10% value gains, while Irish whiskey rose by 11%.

Addressing Japanese whisky’s boom, Charlotte Reid, IWSR senior insights manager GTR, said: “Growth was driven by strong cultural cachet, traveller curiosity and a genuine willingness by consumers to spend at or above the premium tier.

“Irish whiskey is also experiencing broad momentum, supported by a growing number of new distilleries successfully gaining traction with curious travellers.”

Another strong performer in GTR 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,” Reid explained of Tequila/mezcal.

She noted that while Japanese whisky and agave spirits “surged”, the Cognac segment had “one of its worst declines in several decades”.

Cognac/brandy volumes fell by 6%, while value was down by 8% due to “structural pressures”.

Reid added: “The premium XO segment was hit hardest in 2025, as traditional gifting occasions weakened, but VS benefitted from growing use in cocktails.

“Recovery will depend on engaging travellers through experiential retail, accessible entry-level expressions and repositioning beyond gifting into self-purchase and on-trip consumption occasions.”

Travellers ditch gin for vodka and RTDs.

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 also decreased as consumers shifted to vodka and ready-to-drink (RTD).

Boosted by flavoured products, vodka saw an increase of 7% in volume and a double-digit value gain.

Meanwhile, rum volumes fell 6%, but value increased, though IWSR did not say by how much. IWSR noted that this suggests the category is benefiting from drinkers trading up, led by dark variants.

Speaking about spirits more generally, Reid warned that traditional categories “are being challenged by rapid shifts in consumer preferences”.

Collectively, spirits and wine volumes rose by 6% in 2025, with the latter category seeing a 5% value rise.

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.

Asia Pacific: ‘lacklustre spirits performance’

For both wine and spirits, all four regions covered by IWSR recorded value growth, led by 11% gains in both Europe and Africa/Middle East, followed by the Americas (up 7%) and Asia Pacific (up 2%).

IWSR pointed to Asia Pacific as having a “lacklustre spirits performance” despite strong gains in India. The Americas was divided, with IWSR noting a “buoyant Latin America and a softer North America”.

For its 2025-27 forecasts, IWSR says 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 said to be highly exposed to the Middle East disruption, with its recovery expected to be the slowest of the regions in the years ahead.