Spirits sales fall 2.2% in US in 2025
US spirits sales declined by 2.2% in value last year, with only ready-to-drink (RTD) cocktails in growth, according to a new report.
During its annual economic briefing yesterday (5 February), the Distilled Spirits Council of the US (Discus) reported the spirits-based RTD cocktails segment maintained its position as the top spirits category, with 16.4% sales growth last year.
Chris Swonger, Discus president and CEO, shared that spirits supplier sales in the US totalled US$36.4 billion in 2025, down by 2.2% from the year before, while volumes rose by 1.9% to 318.1 million nine-litre cases.
In an overview of the spirits sales trends in 2025, Discus shared that the RTD cocktail category was a ‘bright spot’ for the industry, nearing a US$4bn valuation.
Swonger said: “While total US spirits sales edged down 2.2% in 2025, the spirits industry remains resilient, driven by innovative products that continue to spark consumer interest.
“Against a challenging backdrop of weakening consumer confidence and persistent economic pressures, American adults continue to choose distilled spirits, with ready-to-drink cocktails standing out as a clear favourite.
“Consumers are showing a strong preference for spirits ready‑to‑drink cocktails because they’re made with real spirits, offer great convenience and flavour, and include lower‑alcohol options,” he added.
Pre-mixed cocktails, including spirits RTDs, reached US$3.8bn, an increase of 16.4% year over year.
The report found that spirits RTDs have more than doubled their market share since 2021.
In addition, the category has nearly quadrupled its sales by volume over the past five years, leaping from 23.5m nine-litre cases to 85.6m.
Meanwhile malt-based seltzers are down by 14 percentage points.
For the fourth consecutive year, the spirits sector has maintained its market share lead, reaching 42.4% in 2025.
It has also has gained more than 13 points of market share since 2000, with each point representing US$860m in supplier revenue.
Furthermore, spirits revenues have more than doubled in the last 20 years, reaching US$36.4bn in 2025 – an increase of US$20bn in 20 years.
Top spirits categories
While cocktail RTDs saw growth, all other major categories showed declines.
The vodka category saw total revenue drop by 3%, with sales totalling US$7bn, while Tequila and mezcal sales fell to US$6.4bn – a decline of 4.1%.
American whiskey sales took a smaller hit, dipping by 0.9% to US$5.1bn, while cordial sales declined by 3.2% to reach US$2.7bn.
The four categories also witnessed volume declines, with vodka dropping to 72.5m nine-litre cases – a fall of 2.2% – while Tequila and mezcal fell by 0.3% to 32.1m nine-litre cases.
American whiskey dropped by 1% to 30m nine-litre cases, and cordials fell to 19.5m nine-litre cases – a fall of 2.7%.
During the briefing, Swonger shared that global trade tensions continue to weigh on distillers, including unresolved retaliatory tariff threats, the removal of American spirits from most Canadian retail shelves, and broader uncertainty that hinders long‑term planning.
“The unpredictability surrounding global trade issues continues to weigh heavily on the US spirits sector,” said Swonger.
He also noted that the council’s most recent data showed American spirits exports had declined by 9% year over year in the second quarter of 2025. “Reinstating zero-for-zero tariffs on distilled spirits must be a priority to get our American distillers back on a path to growth and prosperity.”
Guest speaker, Robert Cullins, CEO of Disaronno International USA, highlighted how his spirits businesses, which include Maryland-based Sagamore Spirit Distillery, have been impacted by the ongoing trade tensions.
“Canada once accounted for 10% of our American rye whiskey exports, and overnight that business disappeared,” Cullins explained. “We spent nearly three years working through the regulatory process to bring our whiskey to Canadian shelves, so having the market close without warning has been incredibly discouraging.
“While provincial prohibitions have kept our products off the shelves, we remain committed to our Canadian consumers. Our products are meant to be shared and bring people together, and we look forward to the day, hopefully soon, when we will be back in Canadian stores,” Cullins said, adding that “securing permanent, tariff-free access to international markets will allow us to keep investing in our community and our future.”
Swonger noted that despite these challenges, 2025 also marked some positive trade developments, including the continued protection of American spirits from retaliatory tariffs and reduced tariffs in India and Turkey.
Furthermore, he highlighted a number of important victories in 2025 at the federal and state levels, including third-party delivery secured in Arizona and Virginia; cocktails to-go permanency in Nevada and Vermont, bringing the total to 32 states plus Washington DC; and RTD market access improvements in Connecticut, Indiana, Maine and Virginia.
Looking ahead to 2026, Swonger confirmed Discus’ priorities will include securing the permanent return to zero-for-zero tariffs on all spirits and advocating for the return of American products to Canadian shelves.
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