How bad was 2025 for American whiskey? Distilled spirits data released
Total U.S. spirits sales were down 2.2% last year, a drop of $814 million to sales of $36.4 billion in 2025, according new data released by the Distilled Spirits Council of the U.S.
This essentially doubled the decline seen in 2024, when revenue fell by 1.1% or $424 million, indicating a worsening overall economic situation.
While sales were down, volume actually increased 1.9%, to 318.1 million 9-liter cases, DISCUS reported. This was attributed to climbing sales in lower-priced ready-to-drink cocktails.
“While total U.S. spirits sales edged down 2.2% in 2025, the spirits industry remains resilient, driven by innovative products that continue to spark consumer interest,” said Chris Swonger, DISCUS president & CEO in a news release. “Against a challenging backdrop of weakening consumer confidence and persistent economic pressures, American adults continue to choose distilled spirits, with ready-to-drink cocktails standing out as a clear favorite.”
RTD cocktails were the bright spot, growing 16.4% to $3.8 billion in sales. This is the second year in a row that RTD cocktail growth topped 16%, and in 2025 sales volume topped even vodka, formerly the leading spirit for U.S. sales.
Total RTD sales was nearly 86 million 9-liter cases. Of that, spirits-based RTDs accounted for 19% of the total; the majority (77%) are malt-based products such as White Claw.
“Consumers are showing a strong preference for spirits ready‑to‑drink cocktails because they’re made with real spirits, offer great convenience and flavor, and include lower‑alcohol options,” said Swonger.
Sales of American whiskey, including Kentucky bourbon, fell by a little less than 1%, declining about $100 million, according to the industry organization. This was the second year in a row that American whiskey showed a decline. In 2024, domestic whiskey sales fell from $5.3 billion to $5.2 billion, and now, in 2025, to $5.1 billion.
Spirits council economist Hasan Bakir said there is little evidence that the long-term trend toward premiumization, important particularly in whiskey and bourbon, has ended. He noted that, excluding RTD sales, the declines in American whiskey sales are across the board at similar rates in each price category, from super premium to value.
And in terms of volume, sales dropped by the largest percentage for value-priced American whiskey and the least for super premium.
In fact, except for RTDs, the top spirits categories were down in sales in 2025. Vodka sales were down 3% to $7 billion; tequila/mezcal sales were down 4.1% to $6.4 billion and cordial sales were down 3.2% to $2.7 billion.
Christine LoCascio, chief of policy, strategy and membership for the spirits council, attributed the declines to historic lows in consumer sentiment.
Consumers have seen persistent inflation on essentials, younger adults have lower purchasing power and overall consumers have less for discretionary spending, she said.
These numbers account for domestic sales; the distilled spirits council will present full export numbers in March in Louisville during its annual meeting.
But the group indicated that President Trump’s ongoing trade war continues to weigh on distillers, who have been impacted by the removal of American spirits from most Canadian retail shelves and broader uncertainty that hinders long-term planning. But there were positive trade developments, especially in India and Turkey, where tariffs were reduced, DISCUS reported.
“The unpredictability surrounding global trade issues continues to weigh heavily on the U.S. spirits sector,” said Swonger, noting that the Council’s most recent data showed American spirits exports declined 9% year-over-year in the second quarter of 2025. “Reinstating zero-for-zero tariffs on distilled spirits must be a priority to get our American distillers back on a path to growth and prosperity.”
Swonger said export markets have become increasingly important for U.S. spirits makers, which exported more than $2.4 billion in 2024.
Midyear, through the second quarter, the spirits council reported exports had declined 9%.
Hardest hit were exports to Canada, which pulled American spirits off the shelves last March to protest President Trump’s calls to annex Canada. Through October, exports were down 73%, or $124 million.
But Alberta and Sasketchewan recently began restoring some U.S. spirits to shelves, and Swonger said they will continue to work toward re-establishing the market.
Robert Cullins, CEO of Disaronna International, which owns the familiar amaretto as well as Sagamore Rye, a whiskey made in Baltimore, said the uncertainty has become a bigger problem even than higher costs.
The European Union recently delayed imposing retaliatory tariffs by another six months. That, Cullins said, is actually more disruptive than if they’d imposed the tariff.
“If the EU were to come out and say there is a retaliatory tariff, deal with it, we could plan for it and make a strategy. By delaying an additional six months, it creates more uncertainty,” he said. “So our international export plans for Sagamore to the EU are still on hold. ... We just need clarity from the administration on what’s going forward, specifically for our two major trading partners, Canada and EU.”
This story was originally published February 5, 2026 at 11:02 AM.
