Despite maintaining its title as the largest spirits category by volume, vodka has been softening steadily for several years, and 2024 offered no reprieve. The top 20 vodka brands in the U.S. fell 3% in 2024, and nearly every brand within that group experienced declines, according to Impact Databank. The once-vibrant category reached its peak in 2021 at over 80 million cases and has been falling ever since, down 3.5% to 75.4 million last year, according to Impact Databank.

Tito’s Handmade vodka is by far the star player of not only the vodka category, but the spirits business as a whole. The brand saw a whopping $2.6 billion in sales at retail last year and volume of some 12 million cases. However, even the king of the category experienced some trouble in 2024. For the first time in the brand’s history, Tito’s fell 1.5% to 12 million cases, down from 12.18 million in 2023. The decline was small, but notable, as the brand’s exponential growth has buoyed the category for years. Now, all eyes are on Tito’s, as another decline could signal a turning point for the category.

“Tito’s ($30 a 1.75-liter) is the top selling SKU in the store by far, and it’s interesting to note that it brings in 400% the revenue of Ketel One ($35), our No.-2 vodka SKU,” says Maximilian Girardin, liquor department manager at Hazel’s Beverage World in Boulder, Colorado. “When accounting for every format of Tito’s that we carry, the brand accounts for a quarter of all of our vodka sales. The only way Tito’s could ever slow down enough that another brand could catch up would be if it increased its shelf price enough to force more customers to look elsewhere.”

Value’s Declines

The No. 2 vodka brand in the U.S. is Diageo-led Smirnoff, which also suffered declines in 2024. The brand fell a slightly more significant 6% to 7.9 million cases in 2024, trailing behind Tito’s by 4 million cases. “In the sub-premium category, Smirnoff remains a consistent performer,” says Sadr Amir, CEO of Seattle retail store Downtown Spirits. Three other unde $25 vodka offerings, New Amsterdam, Svedka, and Absolut, ranked in the No. 3, No. 4, and No. 5 spots, respectively, according to Impact Databank. And out of the top five brands, only New Amsterdam remained steady at 5.3 million cases, with Svedka falling 6.2% to 3.45 million cases and Absolut dropping 4% to 2.68 million cases. The softening of these sub-premium brands points to the premiumization trend that is emerging throughout the beverage industry, as consumers continue to trade up when it comes to spirits.

“We observed a noticeable lift in the super-premium and premium vodka categories, particularly around the holidays and larger social gatherings. Grey Goose continues to lead this category in our stores, with Ketel One and Belvedere following closely behind as popular choices,” says Amir. “On the lower end, Smirnoff demonstrated strong velocity throughout the year, maintaining its position as a top-performing brand in the under $25 category. This trend highlights the consumer shift toward premium options for special occasions, while value-oriented options like Smirnoff remain staples for everyday purchases.”

Bacardi-owned Grey Goose was quick to capitalize on the premiumization trend, which shows no sign of slowing. “We anticipate the premiumization trend to continue across the spirits industry beyond 2026, but especially when it comes to vodka,” says Aleco Azqueta, Grey Goose’s vice president of global marketing at Bacardi. “To meet this growing desire, Grey Goose released a new prestige expression this past summer called Grey Goose Altius, which is crafted with water from the French Alps and is available exclusively in global hotspots from Ibiza, Spain to Aspen, Colorado. We’re incredibly excited to be pioneers in the prestige vodka space and have already seen considerable demand for the product during high-energy and special occasions.” Grey Goose, which ranks sixth among the top 20 U.S. vodka brands, softened slightly to 2.65 million cases in 2024, according to Impact Databank.

Ketel One, also owned by Diageo, fared much the same as New Amsterdam, basically flat at 2.5 million cases. The brand, which is well situated in the premium price tier at $35 a 1.75-liter, has seen several slight declines since 2020 as drinking habits have changed, but has remained fairly steady, hovering around the 2.5 million case mark. In 2018, the brand aimed to appeal to health-conscious drinkers by extending its stable with Ketel One Botanicals, a line of low-abv, low-calorie, and zero-sugar vodkas featuring natural botanical and fruit essences. The line won the Market Watch Leaders “Best New Product” award in 2019.

While premium offerings are typically faring much better than many of the value-priced brands in today’s market, there are some anomalies. One value brand has seemingly avoided the headwinds that most vodka brands have weathered in the past four years, experiencing year over year growth. Platinum 7X, handled by Sazerac, saw solid growth in 2024, jumping 7.8% to 2.2 million cases. The vodka, which is distilled seven times, is hailed as being a smoother, more palatable vodka at an economic price point of just $16 a 1.75-liter.

Changing Focus

There are several factors at play when it comes to vodka’s overall decline. The category has certainly been hampered by the exponential growth of Tequila and whisk(e)y as well as the wild success of the emerging spirits-based RTD category. In addition, the appetite for alcoholic beverages has changed significantly in recent years as the better-for-you trend continues to sweep the nation, leading many consumers to turn away from spirits as a whole in favor of zero-proof options. Those who are still drinking are increasingly seeking out low-calorie or gluten-free options with clean ingredients and eco-friendly production processes.

While the behemoth category will always be a mainstay, vodka brands will need to change their approach in order to recapture consumer attention and avoid further decline. Not only will the price point of each bottle be considered by consumers, but also the ingredients inside of it. “In today’s market, consumers are highly discerning and seek authenticity in brand messaging. Vodka brands aiming to capture attention must ensure that their marketing resonates with today’s values and focus on transparency and integrity,” says Downtown Spirits’ Amir. “Additionally, to stand out in the category, brands should emphasize the quality of their ingredients and production methods. Consumers are increasingly aware of what they consume, so highlighting these aspects will help differentiate a vodka brand.”

Retailers all over the country are experiencing this phenomenon. At Molly’s Spirits in Denver, chief administrative officer Crystal Marine says her customers are shopping with keen eyes. “The Colorado consumer is increasingly health-conscious and environmentally aware,” says Marine. “Brands can tap into this by highlighting eco-friendly production processes; offering lower-calorie, gluten-free, or organic options that cater to those seeking healthier alternatives; and marketing clean, simple ingredients, with transparency about sourcing and production.”

One emerging brand that is doing this particularly well is Weber Ranch 1902 vodka, the first launch of Round 2 Spirits, a new brand stable created by Patrón veterans John Paul DeJoria, Ed Brown, Lee Applbaum, and Dave Wilson, as well as Brad Vassar, a former Southern Glazer’s executive. The vodka, which retails for $28 a 750-ml., is distilled from 100% Blue Weber agave. Weber Ranch launched in the summer of 2024 and has seen significant traction amongst both vodka and Tequila drinkers.

“Agave is not only a higher-quality base ingredient, it also imparts a natural, light sweetness and citrus notes to our vodka, and creates a silky and smooth mouthfeel without any aftertaste or ‘bite,’” says Applbaum, who serves as president and COO at Round 2 Spirits. “In terms of our production method, it takes about seven years from garden to glass to create Weber Ranch vodka, versus just months for vodka and other unaged spirits made from wheat or corn. This exclusive process combines methods used to craft Tequila with the complexity of transforming agave into a premium vodka of extraordinary character, with zero additives, ensuring a clean, pure taste.”

This innovation has not only been well-received by vodka drinkers, but has also brought Tequila drinkers into the category as the distilling processes are so similar and offer a familiar drinking experience. “We launched the brand a little more than six months ago, so it’s still very early days, but I couldn’t be more pleased with the universal, positive feedback we’ve received from distributors, retailers, bartenders, and of course, consumers,” says Applbaum. “People are intrigued by the idea of a vodka distilled exclusively from agave, and they’re excited about something new and innovative in the vodka space.”

The Name Of The Game

Innovation is the name of the game these days across the beverage industry as producers from every spirits category battle to create the “next big thing,” and vodka certainly has a hand in that fight. The latest beverage craze is spirits-based RTDs, with brands like High Noon Sun Sips, Truly, and Cutwater, among others, including real spirits in their ready-to-drink cocktails. High Noon has seen unprecedented success with their vodka-based seltzers, leading many of the biggest vodka brands to jump on the bandwagon and launch their own vodka RTDs.

Category leaders like Grey Goose, Smirnoff, Absolut, and more have shuffled out RTD expressions that feature their vodka in an attempt to entice new people, specifically younger consumers in Gen Z, into the category. “Vodka-based RTDs are successfully recruiting many new consumers into the vodka segment as a whole,” says Grey Goose’s Azqueta. “So it’s been an invaluable gateway for those who are new to the category to trade up to Grey Goose during more elevated drinking occasions.”

Philadelphia-based Stateside Brands has seen their line of vodka-based RTDs skyrocket in the U.S. market. While Stateside vodka sodas were their initial release, the star of their stable is Surfside, a line of vodka-based teas and lemonades. Surfside offers a variety of flavors and has only 100 calories per can with just two grams of sugar, appealing to health-conscious consumers. The brand’s RTDs have only aided sales of Stateside vodka, which is used in each canned Stateside offering, and will continue to do so through the launch of Surfside Green Teas later this year.

“Vodka based RTD cocktail sales are at a record high in our store with High Noon leading the charge, bringing in as much revenue as the Tito’s 1.75-liter,” says Hazel’s Beverage World’s Girardin. “People are searching for the lowest calorie tasty options, and vodka-based RTDs dominate the category for all demographics.” Amir of Downtown Spirits agrees, noting that, “Vodka RTDs continue to perform well, particularly among younger consumers. Their versatility drives strong year-round sales, with peak demand during the summer months.”

While it’s unclear whether or not vodka’s downturn is a blip on the category’s radar or a warning sign of further decline, it’s evident that the vodka category could use a shake-up to reinvigorate consumers. However, this incredibly versatile spirit isn’t going anywhere anytime soon. “With so many quality brands available lately, I doubt vodka will ever flounder completely as a category,” says Girardin. “I think the future of the category rests almost solely in the hands of the giant producers and the decisions they make.”

Other retailers seem to be on the same page. “There’s still work to be done in educating consumers that vodka isn’t just a tasteless, generic spirit,” Amir notes. “By highlighting the unique qualities of different vodkas, brands can engage consumers and grow their appeal with new consumers.” Brandon Luck McDuffey, general manager at Sopris Liquor & Wine in Carbondale, Colorado, agrees. “Vodka is certainly not going anywhere. Never will,” he says. “Tito’s is one of the largest brands in the world and doesn’t do any variations. Personality, exposure, and fantastic ingredients are some of the best ways for brands to gain that same respect.”