Minneapolis, Minn., (July 7, 2026) — The U.S. distilled spirits industry demonstrated remarkable resilience in 2025, posting its 28th consecutive year of volume growth despite one of the most challenging operating environments in recent memory. Total spirits volume increased 1.9%, adding 6.0 million 9-liter cases to reach a record 312.2 million cases, matching the category's growth rate from 2024. Once again, spirits outperformed both beer and wine, reinforcing its position as the growth engine of the U.S. beverage alcohol industry, fueled largely by the continued momentum of RTDs.
Underlying the industry's overall growth, the market became increasingly concentrated. Ready-to-drink cocktails and tequila were the only major spirits categories to deliver volume gains in 2025, while much of the traditional spirits business faced mounting pressure. American whiskey declined 1.9%, imported whiskey fell 6.5%, and vodka continued its multi-year slide as consumer preferences shifted toward convenience, flavor innovation, and premium experiences. Collectively, non-whiskey categories increased 3.5%, highlighting the changing dynamics of the marketplace.
RTDs not only fueled category growth but also reshaped the competitive landscape among the industry's biggest brands. Within the Beverage Information Group's Top 150 Distilled Spirits Brands rankings, six brands improved their position within the Top 20 during 2025, with all but one belonging to the RTD category—underscoring just how dramatically convenience-driven products are redefining consumer demand.
While RTDs captured the spotlight, vodka remained a cornerstone of the spirits business, accounting for 23.5% of total industry volume. Even so, the category continued to face structural challenges as volumes declined 4.3% in 2025, following a 2.5% decrease in 2024. Vodka's share of the overall spirits market has steadily contracted as consumers increasingly gravitate toward RTDs, tequila, and other flavor-forward alternatives. Despite the broader category decline, Tito's Handmade Vodka further strengthened its leadership position. Although brand volume slipped modestly, Tito's expanded its share of the vodka category to 16.2%, solidifying its position as America's leading vodka and the nation's second-largest distilled spirits brand.
The industry's performance was especially noteworthy given the unprecedented headwinds facing beverage alcohol throughout 2025. Producers, distributors, retailers, and on-premise operators all navigated a marketplace shaped by shifting consumer behavior and heightened economic uncertainty. Consumers increasingly embraced a "drink less, but drink better" mindset, becoming more selective with both their alcohol consumption and discretionary spending. Persistent inflation, economic uncertainty, the rapid emergence of THC-infused beverages, growing use of GLP-1 weight-loss medications, tariff concerns, and heightened attention to health and wellness all combined to create one of the most complex business environments the industry has faced in decades.
Yet despite these challenges, the spirits industry once again proved its resilience.
About the 2026 Liquor Handbook
The Beverage Information Group’s 2026 Liquor Handbook is a comprehensive source of information on U.S. spirits and sales trends. It includes consumption and projection information by category and by market, tracks leading brands, and reports historical data.
You may order the 2026 Liquor Handbook at www.epgspecialtyinformation.com or by contacting Sherai Falcon at sfalcon@epgacceleration.com or 763-383-4400 ext. 4423.
