While inflation, higher tariffs, and inventory issues persist, continued growth from RTDs, Tequila, and higher-priced spirits in general will propel the market to its 30th consecutive annual gain this year, according to the 2025 edition of The U.S. Spirits Market: Shanken’s Impact Databank Review & Forecast. Ultra-premium priced spirits (about $55 a 750-ml. on average) rose 5% in NielsenIQ channels for the 52-week period ending September 6.

The spirits industry is projected to continue gaining share from the wine and beer categories, both of which are expected to decline this year in volume and value terms. In fact, total spirits volume is expected to surpass that of wine by the end of 2025, for the first time in over 45 years, according to the 282-page Impact Databank report. Sazerac Co. is the industry’s largest supplier by volume in the U.S., but Diageo remains the market leader in dollar terms, bolstered by high-priced Don Julio Tequila.

Although Tequila ranks just fifth among all spirit types by volume, it became the largest single category in dollar terms for the first time ever in 2024, according to Impact Databank. The upscale Tequila segment remains resilient—last year, $25 and over Tequila brands advanced by a combined 4.5% by volume.