The Martini comes for the Margarita’s crown
Although the Margarita remains the most popular cocktail in the US on-trade, the Martini is becoming a serious challenger.
In its latest BeverageTrak Cocktail Report, NielsenIQ revealed that the dollar velocity of the Margarita fell by 16% year-on-year in the final quarter of 2025.
‘Dollar velocity’ means the average amount of money generated by a particular cocktail per on-trade outlet.
The Martini, meanwhile, achieved an upswing of 29% in dollar velocity in the fourth quarter.
The Espresso Martini also made gains, growing by 10%. Other cocktails making ground on the Margarita include the Old Fashioned (up by 12%), Bellini (up 31%) and Mimosa (up 35%).
The On-Premise User Survey also revealed that the number of consumers choosing the Margarita dropped by 6% between spring 2025 and spring 2026.
A similar proportion of consumers moved out of the cocktail category altogether.
Switches were particularly prevalent in the 21- to 34-year-old demographic, where the number typically consuming Margaritas has fallen by 28% in the past two years.
Interest in Tequila in the on-trade remains robust, with sales by value in the 12 months to mid-April down by only 2%. This was led by white/blanco varieties, which represent 56% of all sales.
NIQ said this data suggests consumers are looking beyond the Margarita for other Tequila-based cocktails and shots.
Matt Crompton, vice-president for the on-premise at NIQ, said: “The US cocktail market is constantly evolving, with major consequences for all brands and venue operators.
“While the Margarita is still the country’s top cocktail, sales may have reached their peak as consumers widen their horizons and explore other categories. It’s leading to a diversification of the cocktail market with a new range of winners led by the Martini.”
Data also showed a rise in the ready-to-drink (RTD) category in the on-trade, with value velocity rising by 24% year-on-year. RTD options are now available in around 96,000 venues in the US.
Sales of functional beverages have also rocketed by 49% in the past year, although they remain a small proportion of on-trade spending. NIQ noted they may take more share from cocktails in the years to come.
“The challenges now are to understand consumers’ changes in tastes, pivot quickly and stay relevant. Brand evolution and innovation will be essential,” added Crompton. “In a competitive market, suppliers and operators that invest in market knowledge and precision-target the new opportunities will get a crucial head start in the race for sales and share.”
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