Asia Pacific: Alcohol volumes in Asia Pacific drop by 2% in 2024

The latest insight from the IWSR has found that alcohol volumes in the Asia Pacific (APAC) region dropped by 2% in 2024, Drinks Retailing News reported on June 13.

There were also value declines across all categories except RTDs. Beer fell in value by 3%, spirits by 3% and wine by 4%.

Looking at specific countries, the IWSR found that China fared particularly poorly, with total beverage alcohol (TBA) volumes down 5%, due to declines in Cognac, Scotch whisky and baijiu.

In contrast, India’s TBA volumes grew by 6% and consumption of premium-plus products increased by 19%.

According to the IWSR, category experimentation also continued to grow in India, illustrated by a 58% volume increase in Irish whiskey and a 17% increase in vodka.

Scotch whisky likewise remains consistently on the rise. IWSR forecasts suggest that Scotch whisky volumes will grow at a CAGR of +7% between 2024 and 2029.

Jason Holway, senior consultant for India at the IWSR, said: “The consumer appetite for Scotch in particular is set to drive growth for status spirits in India, and reduced tariffs are key to unlocking the market’s potential.

“Confidence levels among upper-middle-class urban Indians remain high, thanks to growing disposable incomes. There is some evidence of a moderation trend emerging, but the net effect is small at present, with the rising number of new consumers entering the market.”

Considering the APAC region as a whole, the IWSR expects spirits volumes to continue to decline this year and into 2026 before staging a recovery in 2027–29.

The insight provider also noted that wines will continue to decline through to 2029, albeit at a progressively slower rate. However, sparkling wines present a bright spot, with volume growth expected in Australia, China, India and Japan.

Beer is expected to continue its decline for the rest of the year before returning to growth in 2026. The IWSR predicts this growth will be led by India, Vietnam, Thailand, the Philippines, Indonesia and Singapore.

Finally, the strongest area of growth is in RTDs, led by Japan, which has a predicted 2024–29 CAGR of +3%.