The global premium beer segment, long supported by a robust premiumisation trend, experienced a setback in the first half of 2025.
According to new IWSR data, premium-and-above beer volumes fell by -2% in the world’s top 20 beverage alcohol markets, reflecting mounting macroeconomic pressures, weaker consumer confidence, and intensifying competition across categories.
This decline marks a pause after four consecutive years of growth since 2020 and reveals a broader softness across the total beverage alcohol (TBA) sector.
Softness Across Total Beverage Alcohol
IWSR’s mid-year figures show that TBA volumes in the top 20 markets declined by -1% year-on-year between January and June 2025. Value performance (excluding national spirits) also dipped marginally.
Segment performance varied significantly:
- Spirits: +1% (excluding national spirits)
- Wine: –5%
- Beer (total): –1%
- Premium-and-above beer: –2%
Despite premiumisation shaping the global beer landscape since 2019, 2025’s first half marks a turning point.
A Break in Premiumisation After Peaking in 2024
“Since 2019, there has been a sustained premiumisation trend in beer… but premium-and-above beer peaked in the first half of 2024,” notes Marten Lodewijks, Managing Director and President at IWSR.
While super-premium and above tiers remain slightly more insulated, several factors have weighed heavily on premium offerings:
- Declining consumer confidence
- Uncertainty across global markets
- Poor early-year weather in some regions
- Competition from RTDs
- Closure of craft breweries
- Rising price sensitivity across income groups
One category stands out as a positive exception: no-alcohol beer, which continues to outperform despite the broader decline.
United States: Inflation Pressures and Declining Mexican Beer Imports
In the U.S., premium beer faces a combination of structural and economic challenges:
- Strong competition from RTDs, now a fixture in American consumption habits
- Ongoing closures of craft breweries, reducing premium offerings
- Tariff-related disruptions to Mexican beer imports
- Reduced spending among Hispanic consumers
- Broad cost-of-living pressure pushing drinkers toward value options
Premium beer prices in the U.S. are now about 20% higher than four to five years ago — a jump that is increasingly difficult for many consumers to absorb.
China: Economic Weakness and On-Trade Decline
Premium beer in China posted a -3% decline in H1 2025, a stark reversal from the +1% growth in H1 2024.
Key drivers include:
- Reduced frequency of going out
- Permanent closures of restaurants
- Weaker-than-expected economic recovery
- Lower discretionary spending
A similar decline is reported in Brazil, Germany, and other major markets.
Where Premium Beer Is Still Growing
Despite setbacks, the global picture is far from uniformly negative. Of the top 20 markets, 12 posted volume growth for premium-and-above beer.
India
India stands out as a powerhouse:
- Total beer: +7%
- Premium-and-above beer: +8%
Growth was driven by strong southern markets and favourable weather conditions until June rains slowed consumption.
South Africa and Mexico
Both markets saw:
- Strong expansion across multiple price segments
- Particularly strong performance from non-alcoholic beers
United Kingdom
Premium beer growth in the UK has been supported by:
- Ongoing popularity of world beers
- Strong performance of stout
- Consumers trading up despite economic caution
Japan
Japan’s premium segment benefitted from:
- Increased tourism
- Consumers shifting from value beers due to tax harmonisation with traditional beer
Europe: Premium Beer Stays Resilient
Across Europe, total beer volumes declined –3% in H1 2025, facing economic tension, cautious consumer behaviour, and a sluggish on-trade.
Yet premium-and-above beer proved resilient, with growth across nearly all major markets — except Germany and Spain.
A Reversal — But Not a Collapse
“The global growth of the premium beer category went into reverse in the first half of 2025,” says Lodewijks, “but the fact that most major markets still recorded gains shows that many growth opportunities remain.”
While macroeconomic headwinds, shifting preferences, and price sensitivity are dampening premium beer’s momentum in 2025, underlying consumer interest in higher-quality, differentiated products remains strong — suggesting room for recovery once economic pressures ease.
Source: IWSR