According IWSR data, duty free continues to present opportunities for brand owners, as it is outperforming most domestic beverage alcohol markets.
Combined spirits and wine volumes in GTR increased by 5% in 2025. Spirits value grew by 7%, while wine value rose by 5%.
All four regions covered by IWSR recorded value growth, led by Europe (+11%) and Africa/Middle East (also +11%), followed by Americas (+7%) and Asia-Pacific (+2%).
However, IWSR said these figures mask “pronounced” regional variations, including a “lacklustre” spirits performance in Asia-Pacific alongside continued strong growth in India. IWSR also highlighted a split between a “buoyant Latin America” and a “softer North America.”
Whisky was the dominant growth driver in GTR during 2025, with value rising by +12%.
Scotch whisky and American whiskey both recorded +10% value growth, while Irish whiskey rose by +11% but Japanese whisky stood out with a +44% value rise, with volumes up +37%.
Agave spirits recorded double-digit growth, with volumes up +10% and value outstripping this with a +28% gain. Vodka benefitted from demand for flavoured variants and consumers switching across from gin in core European markets, with a +7% volume rise and double-digit value growth.
Rum volumes declined by 6%, although value growth indicated consumers were trading up within the category.
Gin volumes were broadly flat in GTR during 2025, but value rose by 7% as local and craft brands performed well in markets including the Nordics, the UK and Asia-Pacific.
Wine also enjoyed a positive year with volumes increasing by +2% and value by +5%. Still wine spearheaded this growth but light aperitifs were the standout sub-category, expanding volumes by +16% and value by +25%.
Champagne experienced a mixed year, with volumes down but value rising while there were signs of ‘Prosecco fatigue’ as both volume and value fell. But Cognac and brandy struggled as volumes dipped by -6%, with value declined by -8%.
Charlotte Reid, IWSR Senior Insights Manager, GTR, said: “In global travel retail, traditional spirits categories are being challenged by rapid shifts in consumer preferences.
“Spirits delivered aggregate volume growth of +6% and value growth of +7% in 2025, with considerable divergence in performance between sub-categories.”
Reid added: “Japanese whisky and agave spirits surged, while Cognac suffered one of its worst declines in several decades. Flavoured gin also fell as consumers migrated towards vodka and RTDs.”
IWSR future predictions
- For spirits, Scotch whisky dominates the growth opportunity to 2030 while Japanese and Irish whiskies lead in terms of momentum.
- Future value growth for wine will be anchored by still wine and Champagne, alongside smaller gains for fortified wines and other sparkling wine. Prosecco faces continued pressure and is poised for a slight decline to 2030. Light aperitifs remain the fastest-growing sub-category here.
- Forecasts for the 2025-27 period in GTR are weighed down the continued conflict in the Middle East, airspace closures, flight disruption, elevated fuel costs and cost-of-living pressures. Africa and the Middle East will take the biggest hit, with IWSR predicting a single-year volume decline as steep as -22%, and recovery unlikely before 2028. The Americas and Asia-Pacific are less impacted, but Europe is also highly exposed to disruption in the Middle East, and its recovery is expected to be the slowest of the regions in the years ahead.
