From tequila takeovers to whiskey wins, GTR Magazine reports on the state of the spirits category

Experts forecast strong growth for the global spirits market in travel retail through 2025. The resurgence of international travel, combined with a consumer shift toward premium products, exclusivity, and experiences, have been setting the stage for a profitable year. Passenger traffic picked up pace in 2024 and continues to climb in 2025, driving healthy sales. In the meantime, shoppers are showing up with more defined tastes and a clear willingness to spend on what feels premium or different.

Raising the bar

Travel retail shoppers are adopting a “less, but better” mindset, buying fewer, higher-quality spirits as personal treats or standout gifts. Distillers are responding by expanding portfolios with premium expressions aimed at selective buyers.

Brown-Forman is leaning into the upper end of the whiskey spectrum by investing in exclusive releases, age-statement whiskies, and high-impact airport activations. “Our growth strategy for Jack Daniel’s centers around being a Tennessee whiskey, with Old No. 7 at the core,” comments Laura Smith, Global Marketing Manager, GTR at Brown-Forman. “But increasingly, we’re shifting focus to the super-premium category and expanding our range to meet the evolving tastes of modern whiskey drinkers.”

Smith acknowledges that Jack Daniel’s has relied on core offerings and hasn’t historically played in the super-premium space. “That’s changing,” she says. “We’re now seeing real traction at home in the U.S. and now in Asia, where there’s significant room for growth.”

One of the brand’s major moves is reintroducing age-statement whiskey to the Jack Daniel’s GTR portfolio, marketing a milestone not reached in over a century. “This is the first time we’ve launched aged statement Tennessee whiskey internationally,” shares Smith. “It’s incredibly special, not just for us as a brand, but for the entire category.”

Stirred, shaken and surging

Cocktail culture is gaining momentum in travel retail, with consumer preferences shifting toward spirits suited for mixed drinks. “60% of Americans prefer spirits or cocktails while on holiday,” says Andrew Cowan, Managing Director at Diageo Travel Retail. “Educating consumers on serving suggestions, not just the bottle itself, is becoming increasingly commonplace.” As a result, brands are positioning their products as essential cocktail ingredients, not just standalone spirits.

This trend is also driving quiet but steady growth in Ready-to-Drink (RTD) and Ready-to-Serve (RTS) formats, though the segment remains relatively under the radar. “No major brand has pierced in Europe yet on this segment,” shares Thibault Touchais, Head of Category Management – Beverages at Lagardère Travel Retail, who notes that the company is still deciding whether to regroup these products into a dedicated category or place them alongside their base spirits.

The cocktail wave is also fueling tequila’s rise. “At the moment, Don Julio is the number one tequila in duty free,” Cowan shares, “thanks in part to the rise of tequila-based cocktails such as margaritas and palomas.” Lagardère is seeing similar momentum. “We significantly expanded our tequila range last year and gave it dedicated shelf space,” adds Touchais. He notes that while sales have doubled, tequila still represents a small share of overall volume.

Meanwhile, whiskey continues to perform. “Johnnie Walker Black Label remains the number one Scotch whiskey in travel retail, a position it has held for the past three years,” says Cowan. Bourbon is also gaining ground at Lagardère, particularly in the premium and craft segments. “It’s growing at the expense of single malt Scotch, leading us to reallocate shelf space between the two in certain shops,” says Touchais.

For Brown-Forman, variety remains a major strength. “We’re increasingly talking to customers about the breadth of the Jack Daniel’s range and how it offers different products for different needs and price points,” Smith says. The company has built a clear progression for consumers, starting with approachable Jack Daniel’s Tennessee flavors such as Honey, Fire, and Apple to higher-tier options such as Gentleman Jack, the Bonded Series, and Single Barrel. The American Single Malt, launched recently, now expands the portfolio even further.

Other categories are also gaining momentum. Barry Geoghegan, Founder of Duty Free Global, notes growing interest in aged and tawny port along with premium burgundy wines. Gin also holds promise when supported by innovation. “Gunpowder Irish Gin with their new innovative flavor called Brazilian Pineapple is a prime example,” says Geoghegan.

High spirits, higher expectations

The travel retail channel has expanded beyond selling bottles to becoming a place for discovery, with consumers seeking products not available at home. This desire for novelty and urgency has paved the way for travel retail exclusive editions that help brands meet this demand.

“This is true for all categories in travel retail, but especially spirits,” Cowan notes, adding that exclusivity, memorability and local heritage matter deeply to global travelers. “You have the most discerning consumers in the world, as well as a very captive audience. This presents huge opportunities to build brands and get consumers excited about the spirits category, but you need to be able to demonstrate that they are getting something different from a shop at home.”

Brown-Forman’s Single Barrel 100 Proof, a bottled-in-bond expression matured in handcrafted oak barrels, stands out as a global travel retail exclusive and flagship product. As Smith explains, “We're focusing on top airport locations for brand activations to maximize visibility and bring this story to life.”

Still, Touchais warns on some of the setbacks and difficulties with exclusives and limited editions. “Excusive editions are sought after by landlords, but they usually come at a premium,” he says, noting that travelers aren’t always willing to pay more. “The most flexible solution seems to remain exclusive sleeves or outer packaging,” he explains, adding that full exclusive editions take up shelf space and mostly make sense for major international brands and high-traffic airports that can meet minimum production volumes.

Limited editions pose other challenges. “We use six-month planograms, which aren’t very flexible, so leftover stock is frequently a concern,” Touchais notes. Still, he acknowledges their value. “They add energy to the assortment and usually interest passengers, especially when tied to brands with high reputations and desirability.” Touchais also explains that they perform best when supported by trained staff and dedicated, flexible brand spaces.

To reduce barriers for brands, Lagardère recently introduced the “Launchpad,” a permanent retail space for new product introductions. “It lightens the investment needed from suppliers at a time when marketing budgets are decreasing,” says Touchais.

Pouring on the action

Memorable activations continue to remain an important part of converting casual browsers into loyal customers.

Cowan highlights Diageo’s recent partnership between Don Julio and cultural icon Peggy Gou. “By combining a limited-edition product with a cultural icon and hosting events at hotspot cities, we were able to drive excitement and visibility around the Don Julio brand.” He also points to the Singleton Gardens of Abundance travel retail exclusive launch, which used omnichannel tactics such as a Changi Airport pop-up and 3D anamorphic screens to showcase Singleton Malts’ flavor profiles.

Experience is central to every activation. “That can mean tastings, scent trials, personalization, gifting, concerts, and more,” says Touchais. Lagardère favors activations with seasonal or cultural relevance, from Formula One (F1) tie-ins and Cannes Film Festival collaborations to end-of-year holiday themes like branded Christmas trees.

One of Brown-Forman’s standout initiatives is its ongoing Jack Daniel’s partnership with the McLaren Formula One team, continuing into 2025 with a limited-edition release timed to the F1 season. “We’re telling the partnership story in travel retail through activations in key race markets, especially the Middle East and Latin America, where F1 enthusiasm is booming,” says Smith. The activation schedule includes major events in Abu Dhabi, Mexico, and São Paulo, following the brand’s recent presence in Miami.

This collaboration delivers strong global visibility for Jack Daniel’s. “There are over a billion F1 fans worldwide,” Smith notes. “When we first started the partnership, McLaren was mid-table. Now they’re right at the front. More camera time, more brand exposure. We like to think Jack has a little influence there!”

As travel retail evolves, so too does the spirits category. Brands that raise the bar with quality, relevance and experience will be primed to leave a lasting pour.

Passport to preferences

Understanding today’s traveler requires nuance. “We carefully evaluate growing trends and what passenger profiles are looking for,” says Duty Free Global’s Geoghegan.

These details matter more than ever as regional dynamics shift. In 2025, Asia Pacific is expected to drive much of the category’s growth, fueled largely by the return of Chinese travelers. Known for their interest in luxury goods and premium spirits, their presence is anticipated to significantly lift sales.

Bourbon is gaining traction in Europe and Asia, with high-end expressions seeing rising demand. And long popular in the U.S., agave-based spirits are expanding into Europe and Asia as awareness and interest in tequila and mezcal grow.

Understanding consumers goes beyond national or regional preferences. According to Geoghegan, how and where a product is marketed matters. “If the brand is more likely to be consumed on vacation, we position it in holiday destination travel retail stores such as Stanstead, Luton, and Gatwick,” he explains. “If it’s aimed at business travelers, we focus on Heathrow and other established Tier 1 airports.”

Distilling future success

The spirits category in travel retail is not without its challenges. The “T-word” continues to weigh on the sector, and Geoghegan says the situation remains open-ended. “When it comes to tariffs, there is no clear pattern at this stage and it’s just a matter of waiting.”

At the same time, price polarization is reshaping the market. “We’re seeing growth either at the entry-level or in luxury,” says Lagardère’s Touchais. “The premiumization trend that carried growth these last years has peaked.”

Shifting attitudes around health and wellness are also impacting consumption, with more travelers choosing to moderate their alcohol intake. Geoghegan points to Duty Free Global’s response: a partnership with no-alcohol brand Caleño. “They offer a fantastic non-alcoholic gin and a spiced rum alternative,” he says.

Looking ahead, the forecast is cautious. “Our overall five-year forecast is less optimistic than before, mainly due to the overall economic situation and rising awareness of the health impact of drinking, specifically among the younger generation,” Touchais adds.