U.S. Liquor Sales Decline in 2024 as Tariffs and Inflation Threaten Industry

Tequila and mezcal see growth, but trade disputes and economic pressures pose significant challenges for spirits producers.

The U.S. spirits industry saw a 1.1% revenue decline in 2024, marking its first drop in over two decades, while total volume grew by 1.1%.
Tequila and mezcal were the only major spirits categories to grow, with a 2.9% increase in revenue, reaching $6.7 billion.
Inflation and higher interest rates reduced consumer spending on premium and super-premium liquors, with buyers opting for slightly less expensive options.
Tariff disputes with Mexico, Canada, and the European Union threaten to disrupt exports and increase costs for spirits producers, with potential 50% EU tariffs on American whiskey looming in April.
Ready-to-drink cocktails emerged as a bright spot, with a 16.5% revenue increase, reflecting shifting consumer preferences toward convenience-focused products.