US Spirits Market Trends Reveal Mixed Signals Amid De-Premiumization Shift

The latest update from Mark Brown’s Industry News Update shows that the US spirits market trends are shifting rapidly. For the four weeks ending October 4, ready-to-drink (RTD) beverages gained 420 basis points in market share compared to last year.

This surge in RTDs has weighed on overall price and mix, masking areas of premiumization across distilled spirits. AB InBev’s Cutwater led the growth not only within RTDs but across the entire spirits category — underscoring how convenience and innovation continue to reshape consumer preferences.

As Mark Brown’s Newsletter notes, the US beverage alcohol sector is currently “going through a correction,” part of a broader recalibration discussed in the publication’s Future of Alcohol series.

Distilled Spirits Growth Falls Below Historical Trends

Industry performance remains under pressure. Nielsen data shows distilled spirits value down around 4%, lagging behind long-term trends. According to DISCUS, the 2024 run rate excluding RTDs and cocktails was slightly better at -3.0% in volume and -2.6% in value.

Within this challenging context, downtrading is visible in vodka and rum, while categories such as whisky, gin, and tequila maintain signs of premiumization. However, tequila’s growth has shifted toward affordable premium brands instead of high-end prestige labels.

Key Challenges: 27 Headwinds for Beverage Alcohol

Mark Brown’s team identified 27 headwinds affecting the beverage alcohol sector. The report groups them into four major themes:

1. Macroeconomic Pressure: Alcohol, as a discretionary staple, faces consumer spending cuts amid prolonged inflation.
2. Health and Moderation: Post-pandemic lifestyle shifts, stricter regulations, and the rise of GLP-1 weight-loss drugs have softened demand.
3. Cultural Relevance: The role of alcohol in social settings continues to evolve, with competition from cannabis impacting the inflow of new consumers.
4. Marketing and Innovation Gaps: The industry’s limited experience navigating downturns highlights the need for smarter, adaptive marketing strategies.

These factors collectively explain the uneven performance across US spirits market trends and categories.

Price and Mix Reveal Contrasting Patterns

While aggregate pricing trends remain mixed, certain categories continue to show resilience in premiumization. Here’s a snapshot of price/mix changes for October versus the prior month:

• Tequila: -1.5% (vs -1.8%)
• Gin: +1.9% (vs +2.4%)
• Vodka: 0.0% (vs +0.3%)
• Rum: -0.7% (vs -0.7%)
• Bourbon: +0.2% (vs +0.8%)
• Canadian Whisky: -0.9% (vs +2.3%)
• Cognac: -1.2% (vs -2.7%)
• Scotch: +1.8% (vs +1.6%)

Despite weaker pricing, several categories—especially whisky and gin—continue to attract consumers seeking value-driven premium options.

Category Spotlight: Tequila and Whisky Drive Diverging Stories

Tequila sales dropped 4.0% in October (vs -4.4% in September), with volume down 2.5%. Don Julio led the declines at -5.6%, followed by Casamigos (-17.9%) and Patrón (-10.4%)—the steepest losses in the category.

In contrast, Scotch and Irish whiskey retained their premium positioning. Scotch volumes fell 11.0%, but price/mix improved to +1.8%, driven by Lagavulin’s single malt. Irish whiskey remained steady, with Jameson showing stable volume trends at -1.7% over 12 weeks.

American and Canadian Whisky: Diverging Paths

Premiumization continues to define American whiskey, led by high-end brands such as Colonel Taylor. Meanwhile, mass-market labels Jack Daniel’s (-4.6%) and Jim Beam (-6.3%) softened.

Canadian whisky told a different story. Crown Royal saw an 8.7% decline in October after previously growing 6%, though this may reflect uneven data as the brand cycles through innovation launches.

White Spirits and RTDs Maintain Momentum

In vodka, price and mix flattened, with growth largely sustained by Tito’s and a range of lower-priced competitors.

RTDs remained the fastest-growing segment, up 28.4% year over year, nearly unchanged from last month’s +28.7%. Cutwater once again dominated, soaring 86.8%, while Surfside, Sun Cruiser, and BuzzBallz posted strong performances.

Major spirits producers remain heavily tied to the US spirits market trends—with about 50% exposure for Diageo, 40% for Rémy Cointreau, 25% for Campari, and a similar share for Pernod Ricard.

A Market in Transition

The US spirits market is clearly undergoing transformation. As RTDs reshape drinking occasions and inflation pressures consumer wallets, brands must find a balance between accessibility and aspiration.

While premiumization isn’t over, it’s evolving — shifting from prestige labels toward attainable luxury. In this new era, flexibility and innovation will determine which brands emerge as leaders.

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Source of Information

Mark Brown’s Industry News Update — US Spirits, De-premiumisation Tracker October 2025

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