Ready-to-drink cocktails were the “bright spot” in an otherwise downbeat US alcohol market as tight consumer budgets hit spirits sales and volumes, new findings show.
Volumes in “core” spirits categories were down 4.4% on an annualised basis in the first quarter of 2026, while revenue dropped 5.7%, according to the latest US industry data from Wine & Spirits Wholesalers of America (WSWA).
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There was a “continued contraction across core spirits and wine”, the WSWA said, noting the gap between core spirits volumes and revenue was the “widest” in its historical SipSource data.
The spread, it added, “underscores continued consumer movement toward lower-priced products”, with volumes in spirits priced in the $50 to $99.99 range down 8.8% in the quarter. Those above $100 fell 9.3%.
SipSource analyst Danny Brager said RTD cocktails bucked the volume declines but added a note of caution on the potential risks of an over-populated category.
“The current environment reflects tighter portfolio management, ongoing SKU rationalisation and more value-oriented consumer behaviour,” Brager said.
“At the same time, spirits-based ready-to-drink cocktails (RTDs) remain a bright spot – but in an increasingly crowded segment where innovation, positioning and disciplined execution matter more than ever.”
Citing market data from NIQ, the trade body said spirits-based RTDs rose 30% in dollar terms during the quarter to account for 28% of total spirits volume in the off-premise channel.
The increase outpaced the 14% dollar growth in wine-based RTDs, while malt equivalents “continued to decline”.
“Among the quarter’s clearest growth stories are spirits-based RTDs, which continue to significantly outperform broader beverage alcohol trends,” the WSWA said.
“The segment now represents a meaningful and growing share of the alcohol landscape but with more than 750 spirits-based prepared cocktail brands in an increasingly crowded category, competition is intensifying as suppliers chase sustained consumer demand for flavour and convenience…”
Wine volumes and revenues also fell – down 8.3% and 5.3%, respectively – linked to “premiumisation pressure in key categories” across spirits and wines, the WSWA said, using Tequila in the $50-plus price bracket as an example.
The trade organisation added: “While table wine’s volume decline continues to fall faster than its revenue trend, the higher end price tiers are only performing relatively better than the lower end but still not growing, and significant discounting is still apparent at the higher end, raising fresh questions about the strength of premiumisation in wine.”
Meanwhile, total spirits volumes dropped 5.1% in the first quarter and revenue declined 5.9%. Tequila and agave spirits fell 3% and 6.6%, respectively, as opposed to a year ago when “luxury tequila revenue trends were growing at 4.2%”, the WSWA said.
In terms of channels, on-premise sales volumes of wines and spirits fell a combined 3%, while off-premise volumes dropped 7.4%.
“Despite higher rates of inflation [for] ‘away from home’ compared to ‘at home’, on-premise trends have improved gradually over the past year, while off-premise softness has remained more persistent,” the WSWA added.
On-premise wine revenue declined 2.3% versus a 6% drop in the off-premise channel.
