Consumer shift to lower-priced alcohol drives decline in premium spirits, while ready-to-drink cocktails gain market share.
US spirits volumes fell 4.4% annually in Q1 2026, with revenue down 5.7%, as budget-conscious consumers traded down. The gap between volume and revenue was the widest in historical data, reflecting demand for cheaper products.
Spirits priced between $50 and $99.99 dropped 8.8%, while those above $100 declined 9.3%. Wine and core spirits categories also saw contraction, underscoring broader industry pressure.
Ready-to-drink cocktails bucked the trend, rising 30% in dollar terms and accounting for 28% of off-premise spirits volume. Analysts warned of risks in an increasingly crowded RTD segment.