Ready-to-drink cocktails were the “bright spot” in an otherwise depressed US alcoholic beverages market as tight consumer budgets hit spirits sales and volumes, new findings show.
Volumes in “core” spirits categories fell an annualized 4.4% in the first quarter of 2026, while revenue fell 5.7%, according to the latest US industry data from Wine & Spirits Wholesalers of America (WSWA).
There was a “continuing contraction between major spirits and wine,” the WSWA said, noting that the gap between major spirits volumes and revenue was the “widest” in its historical SipSource data.
The differential, he added, “underscores consumers’ continued movement toward lower-priced products,” with volumes of spirits priced between $50 and $99.99 falling 8.8% in the quarter. Those over $100 fell 9.3%.
SipSource analyst Danny Brager said RTD cocktails offset volume declines, but added a note of caution about the potential risks of an overcrowded category.
“The current environment reflects tighter portfolio management, continued SKU rationalization and more value-oriented consumer behavior,” Brager said.
“At the same time, spirit-based ready-to-drink (RTD) cocktails remain a bright spot, but in an increasingly crowded segment where innovation, positioning and disciplined execution are more important 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 volumes in the off-premise channel.
The increase outpaced the 14% dollar growth of wine-based RTDs, while malt equivalents “continued to decline.”
“Among the clearest growth stories of the quarter were spirits-based RTDs, which continue to significantly outperform broader alcoholic beverage trends,” the WSWA said.
“The segment now represents a significant and growing part of the alcohol landscape, but with more than 750 spirit-based cocktail brands in an increasingly crowded category, competition is intensifying as suppliers pursue sustained consumer demand for taste and convenience…”
Wine volumes and revenue also fell (by 8.3% and 5.3%, respectively) due to “premium pressure in key categories” in spirits and wines, the WSWA said, using tequila in the $50+ price range as an example.
The trade organization added: “While table wine volume declines continue to fall faster than their revenue trend, higher end price tiers are only doing relatively better than those at the lower end, but are not yet growing, and significant discounts are still evident at the high end, raising new questions about the strength of wine premiumization.”