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RTDs up 14% in US as spirits fall in 2025

Spirits volumes fell by 4% in the US last year, but ready-to-drink (RTD) variants soared by 14%, according to IWSR.

High Noon Vodka Iced Tea
Spirit-based RTDs, like Gallo’s High Noon, are booming in the US

According to new data from IWSR’s US Navigator, total beverage alcohol (TBA) volumes fell by 5% last year.

Beer and wine volumes both decreased by 6%, while RTDs dipped by 1%.

The RTD decline was led by a 5% drop for malt-based options, while spirit-based RTDs grew by 14%.

Volumes of ‘national spirits’ – of which 80% is represented by Korean spirit soju – grew by 18% in the US. Soju accounted for less than 1% of US spirits volumes in 2024.

Another recent report by IWSR predicts that soju will rise at a compound annual growth rate (CAGR) of 16% between 2024 and 2029 in the States. US spirits volumes are expected to drop by 2% over the same period.

In terms of US states, TBA volumes declined in 49 markets, except for Nevada, where volumes were up by 4% last year.

Spirits volumes were down in 37 states, IWSR noted. Most volume increases were relatively small, but volumes were up by 4% in Minnesota and Idaho, and up by 2% in Oregon.

Beer declined in every state except Illinois and Nevada, while wine was down everywhere apart from West Virginia.

There was a mixed performance for RTDs across US states, with volumes in California down by 8%, flat in Texas, and up by 7% in Florida.

IWSR president and managing director Marten Lodewijks said: “Affordability concerns are forcing many consumers to cut discretionary spending, and this is putting the beverage alcohol industry under pressure.

“According to IWSR data, the number of people drinking is not changing. Instead, we’re finding that more people are drinking less often, and enjoying fewer drinks when they do.

“Moderation trends are also playing a role, but when consumer confidence rebounds, we expect volumes in many categories currently in decline to start growing again.”

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