The global market for high-end “status spirits”—defined by IWSR as those priced at USD 100 or more per bottle—endured one of its most challenging years in recent memory.
According to the latest IWSR 2025 Status Spirits Strategic Study, nearly USD 1 billion in value was wiped out from the segment in 2024, marking an -8% overall decline.
The downturn reflects the broader difficulties facing the beverage alcohol industry, from weakened consumer confidence to inflationary pressures, tariffs, and shifting consumption habits. Yet, while the current environment is harsh, experts stress that the setback is cyclical rather than structural, with opportunities for future growth emerging in duty free and new markets such as India, Vietnam, and Malaysia.
China Falters, U.S. Slips, Duty Free Rises
China, traditionally the world’s largest market for status spirits, saw sales plummet -28% in 2024—its second consecutive year of steep losses. This collapse pushed the U.S. into second place globally, despite its own -5% decline.
The standout performer was the duty free channel, which grew +5% in 2024 as global travel and luxury spending continued to recover post-pandemic. IWSR projects duty free sales to achieve a +3% CAGR from 2024 to 2029, making it the leading driver of future growth.
Smaller, fast-growing markets also present bright spots. India is expected to record a remarkable +9% CAGR in status spirits over the next five years, with Japanese whisky (+11%), Scotch (+9–11%), and agave spirits (+13%) leading the charge. Vietnam and Malaysia, too, are forecast to post solid gains, highlighting a geographical diversification of demand.
Cognac in Decline, Scotch More Resilient
By category, Cognac endured the sharpest downturn, sliding -14% in 2024. Its struggles stem largely from China, where sales were disrupted by an anti-dumping investigation and restrictions on duty free restocking. Cognac’s value share of the status segment has fallen dramatically, from 51% in 2019 to just 36% in 2024.
Scotch whisky, now the world’s leading high-end spirit, showed greater resilience with a -8% decline. Blended Scotch performed slightly better than malts, and duty free sales offered a rare bright spot. Favorable trade developments, such as reduced U.S. tariff exposure and the UK-India free trade agreement, are expected to support Scotch in the years ahead.
High-end agave spirits, meanwhile, appear to have peaked in the U.S. Market saturation, falling launch numbers, and consumer fatigue suggest weaker future demand. Japanese whisky, on the other hand, gained momentum, driven by duty free channels and new exclusives. Irish and U.S. whiskey expanded as well, though oversupply risks loom.
Baijiu continues to dominate, accounting for a staggering 85% of global status spirits value in 2024, thanks to a +6% increase. Yet even Baijiu faces headwinds, including economic uncertainty and new austerity rules announced by the Chinese government in May 2025.
The New Buyer: Selective, Value-Driven, Story-Focused
As status spirits portfolios have proliferated, consumer expectations have risen. Buyers are no longer swayed by rarity and luxury alone—they now seek authenticity, storytelling, and a tangible connection to quality. “With oversupply an issue, it is vital that producers limit the number and scale of new launches,” says IWSR Senior Insights Manager Guy Wolfe.
Future winners will be the brands that invest during the downturn, focus on limited but high-quality innovation, and align their offerings with consumer values. In an increasingly fragmented market, where Scotch, Japanese whisky, and emerging agave categories compete for attention, differentiation will depend as much on narrative and cultural resonance as on production and age statements.
Outlook: Short-Term Pain, Long-Term Gain
Despite the USD 1 billion value loss in 2024, the outlook for high-end spirits remains cautiously optimistic. IWSR forecasts moderate growth across the next five years, with Scotch leading the way, Cognac rebounding from 2027, and new opportunities in India, Southeast Asia, and duty free channels.
The high-end spirits sector has always been closely tied to economic cycles, but its appeal as a luxury, experiential category ensures resilience. For brand owners, the task now is clear: weather the downturn, invest in innovation, and build authentic stories that resonate with a more selective global buyer.
Source: IWSR