July 17, 2025

Premium Spirits Gain Share On-Premise as Consumers Trade Up

U.S. bars, clubs, and restaurants are witnessing significant premiumization as consumers increasingly trade up from value and mid-tier spirits, according to CGA by NIQ's latest data. Premium category brands now capture 35.6% of total spirits volume—up 0.4 percentage points year-over-year—while ultra segment brands gained 0.5 percentage points to reach 6.2% share.

The growth comes at the expense of lower-priced options, with value brands dropping 0.2 percentage points to 17.3% and mid-priced products falling 0.5 percentage points to 22%. Nightclubs lead the ultra category expansion with a remarkable 2.2 percentage point share increase, while casual dining and bars gained 0.5 and 0.4 percentage points, respectively.

Tequila drives the ultra segment's stellar performance, stealing 3.7 percentage points from gin, whiskey, and cordials. California remains the largest ultra spirits market, with a 9.7% volume share and a 0.3 percentage point annual growth rate.

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