US wine and spirits face tough Q1 as volumes and revenues slide

New Q1 2025 data from SipSource reveals sharp declines in both wine and spirits in the US, with volume and revenue down across the board. The US wine and spirits market endured a difficult first quarter in 2025, according to the latest SipSource data, with both volume and revenue declines accelerating across categories. Spirits volumes dropped by -6.3% in Q1, while revenue slid by -5.1%. On a rolling 12-month basis, volume now sits at -3.8%, with revenue close behind at -3.9%.

Wine volumes dip nearly 10%

The wine category fared worse than spirits, with Q1 volumes down -9.9% and revenue down -10.5%. While premium wines priced over $50 are showing some volume growth, revenue remains weak as inventory continues to be worked through. Meanwhile, previously improving trends for lower-priced Table Wines have faltered once again. This shift points to a notable change in premiumisation patterns. Where wine had previously seen revenue growth outpace volume, the latest figures show volume now leading revenue - a reversal that analysts say will be important to watch in the months ahead. For spirits, however, revenue is beginning to rebound faster than volume, further signalling changes in consumer purchasing behaviour. The latest projections suggest that Core Spirits rolling 12-month volume will end Q2 at -3.83%, indicating some stabilisation in trend lines even as overall volume remains in negative territory.

Industry giants feeling economic effects

For industry giants like LVMH, their Moët Hennessy organic sales fell 9% in the first quarter of 2025, making it the weakest performing division at LVMH, where overall across the business organic sales were down 3%.

Deputy CEO Alexandre Arnault, who joined the division alongside Guiony in February, acknowledged to staff that this crisis was unusual in scope. “Usually at LVMH when wines and spirits are not going well, fashion is doing well or some [other part of the business] is performing differently. Right now things are not going extremely well,” he said.