The U.S. alcohol industry had another sobering year in 2025.
Spirits supplier revenue fell 2.2% to $36.4 billion for the year, according to new data by industry trade group the Distilled Spirits Council of the United States (DISCUS). The decline came as economic pressure and weaker consumer confidence weighed on discretionary spending.
“While total U.S. spirits sales edged down 2.2% in 2025, the spirits industry remains resilient,” said Chris Swonger, DISCUS CEO and president, in a statement.
Overall volumes for the year rose 1.9% to 318.1 million 9-liter cases, indicating growing demand. But the revenue decline suggests that while Americans are still drinking, they are also trading down — opting for lower-priced spirits and pulling back on premium purchases.
Nearly every major spirits category posted revenue declines. Vodka sales fell 3% to $7 billion. Sales of tequila and mezcal — the industry’s fastest growing segment for several years now — slipped 4.1% to $6.4 billion. American whiskey and cordials revenue dipped 0.9% and 3.2%, respectively.
