SipSource 2025 Q2 Report Highlights Persistent Category Headwinds, Shifting Consumer Trends, and Signs of Continued Stabilization

WASHINGTON, Aug. 18, 2025 /PRNewswire/ -- Last week, Wine & Spirits Wholesalers of America (WSWA) released the SipSource 2025 Q2 Report, offering a comprehensive look at U.S. wine and spirits depletion trends through the first half of the year. Data in the report underscores ongoing category challenges, evolving consumer behaviors, and areas of cautious optimism as the industry navigates persistent macroeconomic and market headwinds. 

"Consumer confidence right now is fragile, and continued trade volatility including concerns over tariffs and supply chain instability is adding to the pressure facing the industry," said SipSource analyst Dale Stratton. "These factors are shaping purchasing patterns, slowing recovery, and forcing industry stakeholders, everyone from producers to importers to wholesalers and retailers, to rethink inventory, pricing, and promotional strategies." 

Wine and Spirits See Steep YTD Declines
Demand remained soft across categories in the first half of the year with Spirits falling -6.0% in volume and -5.0% in revenue, while wine posted sharper drops of -8.7% in volume and -8.5% in revenue. On a rolling 12-month basis, Spirits dropped a more modest, but significant -4.1% and -3.8% in volume/revenue trends, and wine is down -7.2% and -6.6% in volume/revenue trends. 

WATCH: SIPSOURCE ANALYSTS BREAKDOWN Q2 2025 INDUSTRY TRENDS

Wine Faces Ongoing Struggles
In June 2025, Wine's sustained downturn reached its 52nd consecutive month of negative volume growth. Declines in premiumization and distribution remain a concern, particularly in on-premise channels where local purveyors continue to optimize wine lists and prioritize cash flow over large selections and inventories. Dining, which accounts for more than half (56%) of wine revenue and 58% of Wine Points of Distribution (PODs) is down -7.2% and -7.0%, respectively. Prosecco and Champagne are notable exceptions, showing modest to strong growth mid-year. 

WATCH: SIPSOURCE ANALYSTS CONSIDER THE FUTURE OF WINE IN U.S. MARKET

Premiumization Shows Signs of Return in Spirits
After multiple months of volume growth outpacing revenue, premiumization trends are reemerging in key categories. Revenue declines are now consistently less severe than volume declines, particularly in Premium+ price tiers. While overall spirits performance remains negative, Tequila/Agave Spirits remain a bright spot, up +1.1% in volume and +0.7% in revenue in the latest 12-month rolling data.

WATCH: SIPSOURCE ANALYSTS DISCUSS PREMIUMIZATION IN SPIRITS

RTD Growth Slows but Remains a Net Driver of Category Growth 
"The RTD category continues to be a net growth driver, albeit at lower rates than in recent years," said SipSource analyst Danny Brager. "And according to other industry data sets like NIQ scans, we've seen a focused shift away from malt-based beverages to spirits-based ready-to-drinks." 

According to NIQ data, during the first six months of 2025, the total RTD category is up +1.7% in revenue but down -3.2% in volume. While overall growth is slowing, spirits-based RTDs were up +19.6%, with wine-based up +12.4% and malt-based products down -0.8%. 

Interested in SipSource?
The SipSource Q2 2025 Industry Overview is available to subscribers along with the full SipSource database through the iDIG platform, offering category, channel, and price-tier trend data to help industry stakeholders make informed business decisions. Contact Eric Schmidt ([email protected]) to learn more about subscribing to SipSource. 

For members of the media who wish to talk with a SipSource analyst, please contact [email protected].

About WSWA's SipSource
Wine & Spirits Wholesalers of America's (WSWA's) SipSource is the ONLY source for aggregated distributor depletion data, built from unique items sold to individual stores. Since wholesalers distribute to all types of retailers, SipSource has unrivaled channel segmentation. It also covers the largest volume of bona fide alcohol sales and does not need to rely on estimates, samples or projections. WSWA's SipSource uses an industry leading platform: VIP's iDIG to deliver timely, transparent and trusted data. In addition to the reporting tool, subscribers have access to quarterly and annual reports that leverage powerful collaboration with industry leaders and provide high-level insights into the wine and spirits marketplace.

MEDIA CONTACT
Michael Bilello
Executive Vice President, Strategic Communications & Marketing 
[email protected] | (202) 716-4805

SOURCE Wine & Spirits Wholesalers of America