Ready-to-Drink Cocktails Drive U.S. Spirits to 303 Million Cases, Surpassing Wine for First Time in 40 Years

The U.S. spirits industry is expected to post a modest growth of less than 1% this year, according to the latest data from Shanken’s Impact Databank Review & Forecast for 2025. This marks the 30th consecutive year of gains for the category, and for the first time in more than four decades, spirits volume is set to surpass that of wine in the United States.

The report highlights that the main driver behind this continued growth is the surge in ready-to-drink (RTD) and ready-to-serve (RTS) cocktails. Without these pre-mixed beverages, the U.S. spirits market would have experienced its fourth straight year of volume declines. The Impact Databank report, which spans 282 pages, shows that while the industry has seen slight declines in control states through September, total spirits volume in NielsenIQ channels rose 2.9% for the year-to-date period ending October 11. Excluding pre-mixed cocktails, however, the industry would have fallen 2.8% at retail.

Tequila remains a strong performer in the market, and dealcoholized spirits are gaining attention, though from a small base. However, it is the RTD and RTS segments that are making the most significant impact. Sazerac, the leading U.S. spirits company by volume, has expanded its presence in this category, more than tripling its volume in pre-mixed spirit cocktails after acquiring the Buzzballz line last year.

Spirit of Gallo, which markets High Noon—the top-selling spirits brand by volume—has also increased its footprint in the RTD sector. The company launched VMC nationally last year and introduced Lucky One Lemonade in 2025. Britt West, Gallo’s chief commercial officer, noted that VMC is performing well and that Lucky One Lemonade has seen strong demand, especially as it taps into the premium lemonade trend and the no- and low-carbonation space. On the West Coast, Gallo’s Salt Point RTD, acquired last year, is also gaining momentum.

Other major players are expanding their RTD and RTS offerings. Suntory Global Spirits has added the fast-growing -196 vodka soda brand to its On the Rocks line. Pernod Ricard’s Absolut brand extended both its RTD and RTS products earlier this year. Diageo has seen growth with its Cocktail Collection of ready-to-serve drinks, recently adding a Bulleit Whiskey Sour to its lineup.

The biggest volume gainer in the RTD space is Stateside Brands’ Surfside line of non-carbonated iced teas and lemonades. Surfside is projected to approach 12 million cases in the U.S. this year, making it the third-largest spirit by volume, behind only High Noon seltzer and Tito’s vodka.

According to Impact Databank, Sazerac leads the U.S. spirits market with 43.2 million 9-liter case depletions in 2024 and a 3.2% growth in control states for 2025 year-to-date. Diageo follows with 40.2 million cases but saw a 2.6% decline. Spirit of Gallo holds third place with 37.2 million cases and a 2.5% increase. Other top companies include Suntory Global Spirits, Heaven Hill Brands, Bacardi USA, Pernod Ricard USA, Proximo Spirits, Fifth Generation Inc., and Brown-Forman. The top ten companies together account for 226.1 million cases, while other companies make up 77.3 million cases.

The overall spirits market reached 303.4 million 9-liter cases, with a slight decline of 0.9% year-to-date through September. The data underscores the importance of innovation in the RTD and RTS categories for maintaining growth in a mature market. As consumer preferences continue to shift toward convenience and new flavor experiences, industry leaders are investing heavily in these segments to capture demand and offset declines in traditional spirits categories.