The U.S. spirits market grew 2.1% in the first quarter of 2026 compared to the same period last year, according to preliminary data from the Distilled Spirits Council of the United States (DISCUS). Total category sales reached $8.47 billion, up from $8.29 billion in Q1 2025.
Bourbon and American whiskey led growth, posting 4.3% year-over-year gains. The category benefited from continued consumer demand for premium and ultra-premium expressions, with bottles priced above $75 representing 18% of total bourbon volume sold, up from 15% in Q1 2025.
Tequila followed with 3.8% growth, driven by spring season consumption patterns and cocktail bar expansion in urban markets. Mezcal remained a smaller but faster-growing subcategory, increasing 12% year-over-year though representing less than 2% of total agave spirit sales.
Vodka faced the quarter’s primary headwind, declining 1.2% compared to Q1 2025. Market analysts attribute the decline to shifting consumer preferences toward category-specific spirits rather than neutral-grain alternatives. Flavored vodka subcategories, once growth drivers, saw 4% volume reduction.
Gin remained relatively stable, posting 0.8% growth. The category’s flatness reflects market maturation following explosive expansion between 2015-2022. Craft gin producers continue gaining shelf space in independent retailers, though mass-market brands dominate wholesale channel volume.
Texas spirits consumption data shows regional variance. Bourbon preference exceeds national averages by 8 percentage points. Tequila consumption aligns with national trends but benefits from geographic proximity to production centers. Gin consumption in Texas runs 3% below the national average, according to Nielsen data analyzed by market research firm IRI.
Off-premise retail (package stores, grocery, liquor warehouses) drove 68% of quarterly volume, while on-premise venues (bars, restaurants) accounted for 32%. The on-premise channel showed stronger margin preservation compared to off-premise, reflecting pricing power in full-service establishments.
DISCUS projects continued 2-3% annual category growth through 2027, contingent on economic stability and consumer spending patterns. Luxury segment performance remains the primary upside variable, with high-net-worth consumer spending volatile and sensitive to market sentiment.