IWSR report: Alcohol premiumisation shifts from price to value

Analysis from IWSR, an international company specializing in alcoholic beverage markets, indicates that the concept of ‘premiumisation’ in the alcohol industry is undergoing a significant shift. While the industry previously linked growth in high-end segments to higher prices and prestige, much of the value growth recorded between 2022 and 2025 has actually been driven by inflation rather than organic premium demand.

Data shows that global average prices per liter for alcoholic beverages have often trailed behind inflation rates. For example, in 2022, prices decreased by 1% while inflation rose by 8%. In 2023, prices rose by 3% against 6% inflation, and in 2025, prices rose by 1% against a 4% cost-of-living increase. Luke Tegner, Global Head of Consulting at IWSR, noted that the success of premiumisation strategies must be re-examined by stripping away the effects of inflation.

Consumer preferences are also evolving from ostentation toward experience. Buyers are increasingly looking for concrete justifications for higher spending, such as provenance, genuine rarity, perceived quality, and specific consumption occasions, rather than just high price tags. This shift is further influenced by a ‘K-shaped’ economic dynamic, where wealthier consumers continue to support prestige products while other segments face different economic pressures.