U.S. wine and spirits sales decline in Q1 2026 – WSWA
The U.S. alcohol market remained under pressure in Q1 2026 as consumers traded down to cheaper products while ready-to-drink cocktails continued recording strong growth.
USA – The Wine & Spirits Wholesalers of America said the U.S. wine and spirits market remained under pressure during the first quarter of 2026 as inflation, rising fuel costs and cautious consumer spending continued to weigh on alcohol sales across the country.
According to new SipSource data released by the trade group, core spirits volumes declined 4.4% on a 12-month basis during the quarter, while revenue fell 5.7%. Wine recorded an even sharper decline, with volume dropping 8.3% and revenue decreasing 5.3%.
The report pointed to a growing shift toward lower-priced alcohol products as consumers adjusted spending patterns amid economic uncertainty.
In spirits, the gap between declining volume and revenue reached its widest level since SipSource began tracking the market, indicating increased demand for lower-cost brands and products.
Premium spirits categories continued to weaken during the period. Products priced between US$50 and US$99.99 declined 8.8%, while bottles priced above US$100 recorded a 9.3% decline.
Tequila and agave spirits, which had been among the strongest-performing alcohol categories in recent years, also softened during the quarter.
The trade association reported that tequila and agave spirit volumes fell 3%, while revenue declined 6.6%. Luxury tequila revenue had previously recorded annual growth of 4.2% a year earlier.
Wine sales followed a similar pattern. While revenue improved slightly compared to late 2025, overall volume remained weak. The sub-US$5 category, which accounts for more than 22% of total wine volume, declined 19.1% during the quarter.
Higher-end wine categories performed relatively better but still failed to return to growth, with discounting remaining common across premium segments.
March provided limited signs of stabilization, particularly within wine revenue and on-premise channels. However, WSWA noted that one additional shipping day compared with the first quarter of 2025 may have supported those results. On-premise wine and spirits volume fell 3%, while off-premise volume declined 7.4%.
Distribution activity also remained under pressure, falling 3.2% during the latest period, although this represented an improvement from the 5% decline recorded during 2025. Total retail accounts declined 0.5%.
Ready-to-drink cocktails remained the strongest-performing segment in the market. WSWA said spirits-based RTDs grew 30% in dollar sales and now account for 28% of total spirits volume in off-premise retail channels. Wine-based RTDs rose nearly 14%, while malt-based RTDs continued to decline.
Danny Brager said the market is increasingly being shaped by tighter portfolio management, SKU rationalization and more value-focused consumer behaviour. Eric Schmidt added that the latest data highlights where pressure remains persistent and where growth opportunities continue to emerge across categories and price tiers.
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