DISCUS: Spirits volume up even as revenues fall

RTDs and premium trends help sustain demand, annual briefing says

8:55 p.m. Feb. 9, 2026

DUANE CROSS
MCO Publisher•Editor

In 2025, the U.S. distilled spirits sector kept its lead in the nation’s beverage alcohol market, even though total industry revenues dipped a bit due to broader economic challenges, according to the Distilled Spirits Council of the United States’ Annual Economic Briefing.

The briefing provided analysts, journalists, and industry stakeholders with a comprehensive overview of the 2025 U.S. spirits market, highlighting both ongoing strengths and new challenges.

• DISCUS Annual Economic Briefing

Market Share and Industry Performance

Supplier revenues fell by 2.2% in 2025, but the industry remained the largest part of the U.S. beverage alcohol market. Spirits accounted for over 42% of total supplier revenue, continuing a trend of market-share growth that has lasted more than 20 years.

Volume showed even more growth, with total spirits volume rising by almost 1.9% compared to last year. This indicates steady consumer demand despite economic pressures.

DISCUS’s analysis indicates this steady demand stems from the breadth of spirits categories and the industry’s focus on innovation, particularly in ready-to-drink and premium products that attract consumers.

Economic Impact and Sector Size

The spirits industry is still a major driver of the economy. According to DISCUS, the U.S. is the world’s second-largest spirits market, contributing about $250 billion annually to the economy and supporting over 1.7 million jobs across production, distribution, retail, and hospitality.

Domestic production is also important for agriculture. In 2024, the industry used 2.7 billion pounds of grain, showing strong ties to U.S. farming and supply chains.

Consumer Preferences and Category Trends

Ready-to-drink (RTD) products continued to drive growth within the spirits category. These pre-mixed cocktails and convenient spirit-based drinks have become especially popular with younger consumers and have helped offset declines in some traditional spirits categories.

Vodka, tequila/mezcal, and American whiskey remain among the top sellers by both revenue and volume, though their performance can vary from year to year.

Policy Environment and Industry Priorities

The Annual Economic Briefing also provides DISCUS with an opportunity to share key legislative and policy priorities for the spirits sector. In 2026, a key goal is to secure zero-for-zero tariff status in key global markets to boost exports and reduce trade disruptions, particularly following recent changes in international spirits shipments.

The presentation also highlighted policy wins at both the state and federal levels, including expanded access to RTD products in several states and the permanent availability of cocktails-to-go in some areas.

Industry Outlook

With consumer sentiment still low due to ongoing economic pressures, DISCUS leaders stressed that innovation and smart policy will be key to continued growth. The industry’s history of adapting to changing tastes, from premium products to convenient options, should keep it competitive in 2026.