By Lori Wickett
MWBC follows the annual US Alcohol Market State of the Industry report, produced by S&D Insights for Beverage Industry. While barley continues to take a hit in the domestic market, analysts predict that industry demand has “found the trough” and will improve in 2026.
Highlights from the report:
- Mergers & acquisitions are up
- Concern over shrinking distributors, although small mom and pops have ability to be nimble
- New products entering the market, particularly high proof ready-to-gos (RTGs) you’ll find in your grocery or convenience store, and hard teas; interest in hard hydration drinks
- Cannabis-infused products showing less viability as a competitive factor due to varied regulation environment
- Large company CEO changes have caused some disruption
- High diesel costs producing price shocks
- 2026 Q1 returns showing a degree of improvement, giving hope to a rebound in demand
Legacy beer, such as Coors Banquet, is finding new footing. While younger consumers have contributed heavily to the decrease in beer demand, analysts agree that this might be changing as new fads emerge. That does not alter history, however; spirits, wine and beer all fell to dramatic lows in 2025 while recording the worst sales of the 21st century.
For barley growers, spirits continue to keep their head above water. This is only due to the great demand in RTGs; traditional spirits such as blended whiskeys are not outpacing competitive products. Medical concerns continue to grow, also affecting consumer attitudes which prompts the question, “Shouldn’t the barley industry consider a PR campaign?” The good news is the forecast of 1.8% growth in this market for 2026 and renewed hope for craft beer and imported products.
Other interesting stats:
- Since 2020, adult beverage servings have declined 10.3%; analysts predict this to slow greatly in 2026
- Blame Covid: the largest drain on beer and spirits consumption occurred since the pandemic, as compared to moderate increases in a fairly stable market from the previous five years; spirits are the winner here, holding on at 1.5% growth for 2025 (again, due to the innovation of RTGs)
- Expectations for imports (example: Constellation Brands) were higher than what was achieved in 2025; only NA beer sustained sizeable growth out of all adult beverages at better than 21%