US spirits hold market share lead as RTD cocktails drive growth
US spirits retained their lead in beverage alcohol market share in 2025 despite a fall in overall revenues, according to Discus. Ready-to-drink cocktails continued to expand rapidly, emerging as the category’s main source of growth.
US spirits maintained their market share lead in 2025 despite the overall beverage alcohol market softening, according to the Distilled Spirits Council of the United States.
In its annual report, the trade body said ready-to-drink cocktails (RTDs) continued to surge in popularity, emerging as the industry’s strongest growth category.
Sales of spirits in the United States totalled US$36.4 billion in 2025, a fall of 2.2% from the previous year despite volumes increasing by 1.9% to 318.1 million 9-litre cases.
The revenue decline suggests that while Americans are still drinking, they are also trading down — opting for lower-priced spirits and limiting their purchases of premium-priced items.
Market share continues to climb
For the fourth consecutive year, Discus said, the spirits sector maintained its market share lead, reaching 42.4% in 2025.
It has gained more than 13 points of market share against beer and wine since 2000. It calculates that each point gained represents US$860 million in revenue.
“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,” said Chris Swonger, the Discus President & CEO.
“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,” he said.
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Ready-to-drink cocktails surge to US$4bn category
Ready-to-drink spirit cocktails were a bright spot for the industry, Discus said, growing to a nearly US$4 billion category.
“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,” said Swonger.
The bright spot was premixed cocktails, including spirits RTDs, which achieved sales of US$3.8 billion, up 16.4% in the year.
Spirits RTDs have more than doubled their market share since 2021 and gained 11 percentage points in market share in 2025; malt-based seltzers fell by 14 points. All other major categories showed declines.
Major spirit categories record declines
At US$7 billion, vodka shed 3% of its sales, while Tequila and mezcal, at $6.4 billion, were 4.1% lower. The US$5.1 billion of American whisky sales were just under 1% lower.
Trade tensions weigh on sector outlook
Discus said the sector was being hit by global trade tensions, 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, noting that the latest data showed American spirits exports declined 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,” he said.
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