Wine and Spirits Declines Narrowed for Third Straight Month in Q2 2026, WSWA SipSource® Data Shows

WASHINGTON, D.C., August 12, 2026 - Combined U.S. wine and spirits volume and revenue declines continued to moderate during the second quarter of 2026, narrowing for a third consecutive month in the second quarter of 2026, according to SipSource® data released today by the Wine & Spirits Wholesalers of America (WSWA). While the industry remains below prior-year levels across every major measure, the pace of decline has moderated, and distribution trends and on-premise performance point to a market that is gradually becoming more stable.

Combined wine and spirits rolling 12-month volume was down 6.5% through June, improving from a 6.9% decline in May and 7.1% in April. Revenue followed the same pattern, improving to a 5.5% decline through June from 5.9% in May and 6.1% in April.

The latest three-month trends also outperformed the rolling 12-month results, suggesting the pace of decline has continued to moderate heading into the second half of 2026. While one quarter does not establish a trend, the recent improvement provides an encouraging indication that market conditions may be stabilizing.

"This data tell a story of a market finding greater stability, not one that has turned a corner just yet," said Francis Creighton, President and CEO of WSWA. "The decline hasn't reversed but it's clearly decelerated - the more favorable trends we're seeing in on-premise performance and the pace of decline narrowing suggest the market is finding a more sustainable path forward."

On-Premise Continues to Outperform

Channel performance remained one of the clearest themes of the quarter. On-premise volume declined 2.5% over the rolling 12 months, substantially outperforming a 7.3% decline off-premise. Wine on-premise revenue was nearly stable, down just 1.0%, compared with a 5.5% decline in retail; spirits on-premise revenue declined 3.6%, compared with 6.7% off-premise. Because the off-premise channel represents roughly 73% of combined wine and spirits points of distribution, a broader industry recovery will ultimately depend on stronger retail demand.

Wine and Spirits: Different Categories, Converging Trend

While wine and spirits continue to follow different recovery paths, both categories showed modest improvement during the quarter. Spirits remained more resilient on volume, down 4.9% over the rolling 12 months compared with an 8.2% decline for wine, and now represent roughly 51% of combined volume across the aggregated depletion database. Wine outperformed on revenue, down 4.6% compared with a 6.1% decline for spirits, which continue to represent nearly two-thirds of combined category revenue.

Distribution trends continued to improve in both categories, reinforcing signs that assortment rationalization may be stabilizing. Wine Points of Distribution (PODs) were down 3.3%, improved from a 3.8% decline at the end of 2025; spirits PODs were down 2.2%, a 120-basis-point improvement since January. Total accounts sold - a measure of the retail and on-premise locations wholesalers are servicing nationally - declined just 0.4%, with off-premise accounts sold up 0.9%. Wine strength was concentrated in imported wines - led by Italy and France - along with Champagne, sparkling wine, White Table Wine and alternative package formats. In spirits, Unflavored Vodka and Tequila Añejo showed measurable improvement, with Tequila Añejo's revenue decline narrowing from 15.6% over the trailing 12 months to 6.6% over the latest three months.

Improvement Is Broadening Across Consumers and Regions

Demographic data suggests the recent moderation is not concentrated within a single generation. June was the first month in 2026 in which all three major age demographics - 21-39, 40-59, and 60+ - posted positive revenue growth in both wine and spirits, providing an early indication that improving trends may be broadening beyond any one consumer group, though additional months of data will be needed to confirm whether the pattern holds.

Regional performance remained uneven. The Pacific, South Central, Northeast and South Atlantic divisions outperformed the national trend for wine, while the Northeast, Pacific and South Atlantic led for spirits - a reminder that while national indicators are improving, stabilization is not occurring at the same pace everywhere.

A Cautious, Data-Driven Read

WSWA cautions against reading a single quarter as a definitive trend reversal. Rolling volume declines were near 5.2% in late summer 2025 before deteriorating through the second half of the year and into early 2026 - meaning June's results reflect meaningful progress from the cycle's weakest points, but not yet a return to prior-year performance. WSWA expects third-quarter trends to show modest further improvement, helped by more favorable year-over-year comparisons, but a sustained recovery will depend on stronger off-premise demand and continued improvement in consumer confidence.

The SipSource Q2 2026 Industry Overview is available to subscribers through the iDIG platform. Contact to learn more.

About SipSource^®
SipSource is WSWA's proprietary market intelligence platform, providing wholesaler-reported depletion data and inventory analytics across the U.S. wine and spirits industry that help industry stakeholders make informed business decisions. SipSource covers 70% of wholesale volume across all 50 states sourced directly from WSWA members. WSWA releases SipSource findings on a quarterly basis and a 12-month Forecasting Report based on 9-liter case depletion growth rates across seven major spirits categories and the total spirits market. Learn more at sipsource.com.

About WSWA

Wine & Spirits Wholesalers of America (WSWA) is the national trade association representing the wholesale tier of the wine and spirits industry. WSWA member companies are family-owned and operated, distributing over 80% of all wine and spirits sold in the United States.  To learn more, please visit www.wswa.org or connect with us on LinkedIn, Facebook or Twitter. 

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