Spirits-based RTDs surpass $2.7bn
The spirits-based ready-to-drink (RTD) segment is now worth US$2.7 billion in the US off-premise, almost three times its size in 2021.
Citing NIQ off-premise data, the Wine & Spirits Wholesalers of America (WSWA)’s SipSource tool revealed spirits-based RTDs were worth US$2.72bn in the 52 weeks ending 14 June 2025.
The segment was valued at US$2.58bn in 2024, US$2.16bn in 2023, US$1.56bn in 2022 and US$1bn in 2021.
Wine-based RTDs have grown much more slowly, rising to a value of US$1.37bn in the year to date, up from US$1bn in 2021.
Meanwhile, malt-based RTDs declined over the period. In 2021, the segment was worth US$9.42bn, and now it is worth US$9.3bn.
The RTD segment as a whole, including malt- and wine-based variants, is valued at US$13.4bn, up from US$11.4bn in 2021.
Spirits-based RTDs are driving total category growth, according to SipSource.
According to NIQ data, during the first six months of 2025, the total RTD category rose by 1.7% in revenue but was down by 3.2% in volume.
While overall growth is slowing, spirits-based RTDs increased by 19.6%, with wine-based variants up by 12.4% and malt-based products down by 0.8%.
The latest SipSource 2025 Q2 report revealed that spirits volumes in the US fell by 6% in the first half of this year, while revenue declined by 5%.
Wine was hit harder with a decrease of 8.7% in volume and 8.5% in revenue.
For the 12 months to the end of June 2025, spirits were down by 4.1% in volume and by 3.8% in revenue.
Tequila growth slows
The Tequila/agave segment was the only spirit category in growth, but it grew by only 1.1% in volume and by 0.7% in revenue in the 12 months to June 2025.
Vodka was down by 4.8% in revenue over those 12 months, while American whiskey dipped by 2.8% and Canadian whisky fell by 3.9%. Gin also decreased by 4.4%.
Meanwhile, there were steeper revenue declines across Scotch (down 6.7%), brandy/Cognac (down 10.4%), rum (down by 8.6%) and Irish whiskey (down by 10.8%).
“The spirits category in the longer term is still larger than it was in 2020,” said SipSource analyst Danny Brager during a webinar for its Q2 report.
“It has been a tough first half of the year. The agave category is still doing OK – not to the levels it was back two to three years ago, but anytime we see something growing, at least that’s something to highlight as a positive. And that’s the case for Tequila.”
In terms of price segments for spirits, Brager said the middle tiers seem to be performing best, between US$30 and US$49.99 and US$50 and US$100. The luxury tier (US$100-plus) is experiencing the biggest drop, down by 7.5% in the 12 months to June 2025.
“Luxury Tequilas are not growing like they were two to three years ago. The economics are likely playing into that as consumers feel that pinch on their budgets,” Brager added.
‘Crowded’ RTD category
Brager noted that spirits-based RTDs are “now the largest [spirit] segment – bigger than whisky or vodka”.
For the year to date, the leading ‘prepared cocktail’ brand in the US off-trade (NIQ data) was Gallo’s spirit-based seltzer High Noon, a position it also held in 2021. It was followed by BuzzBallz, Cutwater, Surfside, Monaco, On the Rocks, Nutrl and Jose Cuervo.
In terms of leading RTD brands, Brager says half were not in the top 15 in 2021, including Surfside, Nutrl, Long Drink, Sun Cruiser, VMC and Jack Daniel’s.
Despite overall category growth, Brager pointed out that not all brands are performing well. “Over half of today’s top 50 brands are declining and two-thirds of that half are declining by double digits,” he explained.
“The question is, as new brands are introduced, how do you make the next RTD different in terms of differentiation from what’s already out there? It’s a crowded space that’s getting more crowded over time.”
Looking ahead, SipSource expects to see improvements for spirits from 2026.
“We feel more positive heading into 2026 that we start to see the spirits category turn the corner and start to show some improvement,” said SipSource analyst Dale Stretton. “We don’t expect to see either wine or spirits go into any sort of real further retreat.”
The spirits industry is facing challenges such as tariffs and supply chain instability.
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