The Distilled Spirits Council (DISCUS) reported that U.S. spirits maintained its market share while revenues slipped in 2024 and warned that tariffs on spirits would further curtail industry growth.
“While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024,” said DISCUS President and CEO Chris Swonger during DISCUS’ annual economic briefing for media and analysts.
Swonger reported that spirits supplier sales in the United States were down -1.1% in 2024 totaling $37.2 billion, while volumes rose 1.1% to 312.2 million 9-liter cases.
For the third year in a row, the spirits sector maintained its market share lead in 2024. Spirits market share totaled 42.2%, with gains for more than two decades. The spirits sector has gained more than 13 points of market share since 2000. Each point represents $880 million in supplier revenue.
Swonger noted that spirit sales were still continuing to normalize following the robust sales spikes during the pandemic, and economic headwinds including high prices and inflation rates created additional challenges for the industry.
“Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,” said Swonger. “Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends.”
Swonger noted that higher interest rates also impacted the three-tier supply chain with wholesalers and retailers continuing to deplete inventory build ups and cautiously restock products.
Presenting an overview of the spirits sales trends in 2024, Christine LoCascio, DISCUS chief, policy, strategy & membership, reported that despite the overall slowdown, spirits ready-to-drink (RTD) products and Tequila/Mezcal continued to grow in popularity in 2024, with sales up 16.5% and 2.9%, respectively.
TOP 5 SPIRITS CATEGORIES BY REVENUE IN 2024:
Vodka sales flat totaling $7.2 billion
Tequila/Mezcal sales up 2.9% totaling $6.7 billion
American Whiskey sales down -1.8% totaling $5.2 billion
Cordials sales down -3.6% totaling $2.8 billion
Premixed cocktails including spirits RTDs up 16.5% to $3.3 billion
During the briefing, DISCUS discussed the recent tariff threats impacting spirits imports and exports, and sounded the alarm over the scheduled reimposition and doubling of the EU’s tariff on American Whiskey to 50% on April 1 related to the steel and aluminum trade dispute.
“One of the most critical issues facing U.S. distillers in 2025 is the threat of tariffs,” said Swonger. “Since the suspension of the EU’s tariffs on American Whiskey, our exports have rebounded to record highs. The reimposition of these tariffs at a 50% rate would gut this growth and do irreparable harm to distillers large and small. It would be a catastrophic blow that will force many distillers out of our largest export market.”