Wine & Spirits Wholesalers of America’s (WSWA) SipSource released its Q4 2024 Industry Report, providing an in-depth analysis of 2024 year-ending market trends and projections for 2025. The beverage alcohol industry encountered one of its most challenging years in collective memory, with all three categories experiencing volume declines. According to data, spirits depletions fell -3.7% and wine fell -7.2% in December-ending data. The overall decline signals a broader challenge facing the industry: changing consumer behaviors trending away from alcohol consumption. Unlike in recent years, revenue trends also followed a downward trajectory, with spirits revenue declining -4.3% and wine revenue falling -6.3% in 2024. Consumers are not trading up as they consume less: The premiumization trend is all but dead with the exception of a few categories. Another key factor driving this downturn is the rapid rise in popularity of spirits-based premixed cocktails, which, while contributing to growth in their segment, disrupted traditional distribution channels and impacted the revenue of conventional spirits. Despite overall industry declines, SipSource revealed a +0.7% expansion in total accounts selling wine and spirits in 2024, largely driven by the growth of spirits-based premixed cocktails.