IWSR report highlights India and Southeast Asia as emerging bright spots in Asia-Pacific alcohol market

Latest IWSR data reveals that India and Southeast Asia's alcohol market growth has partially compensated for China's ongoing downturn. While the Asia-Pacific region faced tough trade conditions in 2024, total alcohol volume fell by 2%, with value dropping 3%. RTDs were the sole category with growth, though only by 1%. Beer sales declined by 3%, spirits (including local varieties) by 2%, and wine by 4%.

China's market remained particularly weak, with total alcohol volume down 5% year-on-year in 2024. Cognac, Scotch whisky, and local baijiu all saw declines. Cognac imports suffered due to unresolved EU-China trade disputes, with both volume and value falling. China was previously one of cognac's top two global markets, second only to the US.

However, the Asia-Pacific region still had bright spots. India's total alcohol volume grew by 6%, with premium categories surging 19%. The Philippines, Thailand, and Vietnam each recorded 2% volume growth. Emily Neill, IWSR Research Director, noted that India and the Philippines are leveraging demographic advantages for market expansion, with stabilizing inflation and GDP growth as key factors.

In contrast, Japan and Thailand saw minimal growth, while China continued to underperform due to its real estate crisis and bleak economic outlook. Neill emphasized that despite slowing premiumization trends globally, Southeast Asia retains potential for value growth through tourism recovery, cocktail culture, and rising incomes. In this slow-growth, value-driven environment, continued investment in Asia's alcohol market remains crucial as new opportunities emerge.

Japan, South Korea, and Australia saw milder declines of 1%, 1%, and 3% respectively in alcohol volume.

2025-06-16

Source - https-//www.thedrinksbusiness.com/2025/06/iwsr-india-and-se-asia-are-the-regions-next-bright-spots-alcohol/