Spirits Overtake Beer in U.S. Alcohol Market Share for First Time

Americans are drinking more spirits but spending less on them, according to new data from the Distilled Spirits Council of the United States (DISCUS). The annual economic briefing, released on February 6, 2026, shows that ready-to-drink cocktails (RTDs) are driving this shift. In 2025, Americans bought 17.1% more RTDs by volume compared to the previous year, while sales of every other type of spirit declined.

RTDs, such as canned cocktails, are much cheaper than traditional aged spirits like whiskey. This trend comes as Americans report the lowest consumer confidence in 65 years, according to a University of Michigan study. With economic concerns rising, consumers are looking for better value in their alcoholic beverages.

Despite the increase in overall spirits sales volume by 1.9% in 2025, the total sales value dropped by 2.2%. When RTDs are excluded from the data, both volume and value of all other spirits categories fell at similar rates. DISCUS officials argue that this does not mean “depremiumization,” a term used to describe a shift away from higher-priced products. Hasan Bakir, DISCUS senior director of economic studies, said that premiumization—where consumers buy more expensive spirits—paused in 2025 after two decades of growth.

The broader alcohol market is also changing. Wine sales dropped about 3% in 2025, according to analyst Jon Moramarco, and many wineries are now for sale. Beer sales fell by 3.7% in value, based on NIQ data. As a result, Americans are not only moving from bottled whiskey and rum to canned cocktails but also switching from beer and wine to these convenient drinks.

Rob McMillan, a wine industry analyst, noted last month that wineries hoping to attract new customers will need to win them over from beer and spirits. While the three industries often work together on issues like tariffs and health messaging, they are competing for consumer dollars—and right now, spirits are winning.

For the first time in U.S. history, spirits surpassed beer in market share by revenue in 2025. Americans spent 42.4% of their alcohol dollars on spirits, compared to 41.8% on beer and just 15.7% on wine. In contrast, back in 2000, beer accounted for 55.5% of alcohol spending while spirits made up only 28.7%.

Value is a key factor behind this shift. Cocktails offer better bang-for-the-buck than wine at restaurants today, which appeals to cost-conscious consumers. Spirits brands have also succeeded in attracting younger adults with new flavors and innovative products. RTDs offer a wide range of options—from Hot Honey Canned Margaritas to Cara Cara Orange Bottled Old Fashioneds—that appeal to drinkers seeking variety beyond traditional wine or beer.

Chris Swonger, president of DISCUS, said that bringing new flavors and products to market has helped capture the attention of consumers aged 21 and older. The major spirits producers operate internationally and offer diverse portfolios that include brandy, rum, and more.

However, international trade remains a challenge for the industry. The ongoing U.S. trade war has led to higher tariffs on imported spirits and retaliatory measures from other countries. U.S. importers paid over $200 million in tariffs through October last year alone. Exports have also suffered; U.S. spirits exports to Canada dropped to one quarter of previous levels after Canada responded to new tariffs imposed by President Donald Trump’s administration.

Within the spirits category itself, only RTDs saw significant growth in 2025. Vodka sales fell by 2.2% by volume; Tequila and mezcal dropped by 0.3%; American whiskey declined by 1%. However, American whiskey performed better than most non-RTD categories as its value sales decline was smaller.

Vodka remains the top-selling bottled spirit in the U.S., with Americans buying about 2.25 times as much vodka as Tequila or mezcal—the second most popular category. Tequila had been growing rapidly but saw consumers pull back from expensive bottles last year; its value sales fell faster than its volume.

Swonger acknowledged the tough environment facing all alcohol producers but said that spirits continue to perform well despite these challenges. He emphasized that stories behind cocktails help drive interest and that while competition with beer and wine exists, the goal is for consumers who want an alcoholic beverage to choose spirits instead.

The rise of RTDs reflects changing tastes and economic realities for American drinkers as they seek affordable options without sacrificing variety or convenience.