The Distilled Spirits Council of the United States (DISCUS) revealed that spirits ready-to-drink cocktails grew 16.4% to $3.8 billion in 2025, emerging as the industry’s strongest growth category. Despite overall U.S. spirits sales declining 2.2% to $36.4 billion, the sector maintained its beverage alcohol market share lead at 42.4% for the fourth consecutive year.
Volumes increased 1.9% to 318.1 million 9-liter cases, according to data presented at DISCUS’s annual economic briefing in Washington.
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“While total U.S. 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, DISCUS President & CEO.
The council reported that spirits have gained more than 13 points of market share since 2000, with each point representing $860 million in supplier revenue.
“Consumers are showing a strong preference for spirits ready-to-drink cocktails because they’re made with real spirits, offer great convenience and flavor, and include lower alcohol options,” Swonger added.
Spirits RTDs have more than doubled their market share since 2021 and gained 11 percentage points in 2025, while malt-based seltzers dropped 14 points.
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Vodka remained the largest category by revenue at $7 billion, down 3%. Tequila and mezcal followed at $6.4 billion, declining 4.1%.
American whiskey generated $5.1 billion in sales, down 0.9%. Cordials reached $2.7 billion, falling 3.2%.
Global trade tensions continue impacting the sector, with American spirits exports declining 9% year-over-year in the second quarter of 2025.
“The unpredictability surrounding global trade issues continues to weigh heavily on the U.S. spirits sector,” Swonger noted. “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.”
Robert Cullins, CEO of Disaronno International USA, which owns Maryland-based Sagamore Spirit Distillery, highlighted the impact of Canadian market restrictions.
“Canada once accounted for 10% of our American rye whiskey exports, and overnight that business disappeared,” said Cullins. However, he also expressed optimism that Sagamore would soon be seen in Canada once more: “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.”
Additionally, Chris Swonger pointed out a number of wins for the American spirits category in 2025. He noted that American spirits are currently experiencing no retaliatory tariffs amid ongoing turbulent trade relations and that the RTD market now has increased access in Connecticut, Indiana, Maine, and Virginia.
Swonger also outlined a number of priorities for DISCUS in 2026, including the desperately needed return of zero-zero tariffs for distilled spirits, the reintroduction of American spirits to the Canadian market, and minimizing the federal and state tax increases on distilled spirits.
