DISCUS Report: Spirits Sales Flat in 2024
During its annual economic briefing for media and analysts, the Distilled Spirits Council of the United States (DISCUS) reported today that U.S. spirits maintained its market share while revenue slipped in 2024, and also 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.
Swonger reported that spirits supplier sales in the U.S. fell 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 buildups 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.
The top five spirits categories by revenue in 2024 were:
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
In the public policy arena, Swonger highlighted a number of important victories in 2024 at the federal and state levels including:
The suspension of the EU’s retaliatory tariff on American Whiskeys until March 31, 2025
Wins on spirits RTDs in three states
Defeated tax threats in 11 states
Third party delivery enacted in Delaware & Maryland
Tastings laws expanded in Ohio & West Virginia
Cocktails to-go permanency in five new states, plus a 5-year extension in New York
Swonger also outlined DISCUS’ priorities for 2025 including:
Advocating for the permanent suspension of retaliatory tariffs on spirits products
Ensuring the Dietary Guidelines for Americans are based on the preponderance of scientific evidence
Fairer tax treatment and increased retail access for RTD products in the states
Defending against hospitality tax threats
Expanding marketplace modernizations including cocktails to-go and direct-to-consumer shipping
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.”
Special guest speaker, Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago, underscored the devastating impact tariffs have had on small craft distillers.
“These tariffs have wreaked havoc on our craft distilling community,” said Birnecker Hart. “Many craft distillers have expended great time, effort and resources to expand into international markets only to see their dreams shattered by tariffs that have absolutely nothing to do with our industry. The return of tariffs will not only hurt my distillery but my local farmer too, and this pain will be felt in towns and cities across the country where 3,000 small craft distilleries are boosting jobs, tourism and agriculture.”
Swonger said the global spirits industry is united in urging their respective governments to continue to negotiate to ensure that spirits products do not get caught up in trade disputes.
“The global spirits associations are working side-by-side to urge our governments to exclude distilled spirits from these trade disputes,” said Swonger. “Tariffs on spirits not only harm distillers, they also severely impact farmers and hospitality businesses including restaurants and bars, which are continuing their fragile recovery after the pandemic. We are making our case to the Trump administration that our industry has thrived with zero-for-zero tariffs and that distilled spirits’ ‘distinctive products’ status, which is recognized by the U.S. and our trading partners, means that these special spirits can only be made in their designated countries.”
Feature photo by Katherine Conrad on Unsplash.
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