Let’s talk cocktails. Not just because they’re delicious (though they are), but because they’re one of the most exciting and lucrative segments in the U.S. on-premise right now. Whether you’re running a bar, managing a restaurant group, or supplying spirits to the trade, cocktails are where the action—and the money—is.
At CGA by NIQ, we’ve been tracking the numbers, and the data tells a compelling story. Cocktails aren’t just surviving—they’re thriving. In a market where beer and wine are struggling to keep pace with shifting consumer habits, mixed drinks are riding a cultural high. Think celebrity mixologists, cocktail competitions, and entire streaming shows dedicated to the art of the pour. This isn’t just a trend—it’s a movement.
The Cocktail Crowd: Young, Curious, and Ready to Spend
Roughly one in three Americans aged 21 to 54 are cocktail drinkers, with Gen Z and late millennials leading the charge. These consumers are adventurous, brand-aware, and willing to pay for quality. That’s a golden trifecta for anyone in the business.
And the revenue potential? Huge. According to our BeverageTrak data, cocktails account for 34% of total spirits value in the on-premise, generating over $14,000 in average outlet revenue over just 12 weeks. With an average price of $13.75 per serve, they’re outpacing wine, neat spirits, and nearly doubling beer. If you’re not prioritizing cocktails, you’re missing out on serious margin.
Taste Reigns Supreme—But It’s Not the Only Factor
Unsurprisingly, taste is the top driver of cocktail choice, with 71% of drinkers saying it’s their main consideration. But price, quality, and brand recognition also play big roles. Nearly half of consumers say quality is a deciding factor, and over a quarter are brand-sensitive. That means your menu needs to do more than list ingredients—it needs to sell the experience.
Two-thirds of cocktail drinkers check the menu before ordering, especially younger guests. That means your menu isn’t just a list—it’s a sales tool. Nearly half of cocktail drinkers say quality is a deciding factor, which they’re likely gauging based on the listed ingredients, unless they’ve tasted it before. Over a quarter are particularly brand sensitive, meaning the appeal of specific ingredient names can strongly sway their choices. For operators, this underscores the need to ensure that cocktail descriptions and ingredient lists are not only informative, but enticing. Be clear, be descriptive, and don’t be afraid to name-drop premium brands.
When guests are unsure, 72% turn to the bar staff for guidance. CGA by NIQ’s 2025 Global Bartender Report reveals that four in five (79%) bartenders say they suggest specific drinks to consumers on every shift, making them one of the biggest influences on decision-making in the on-premise. That’s a huge opportunity for upselling—if your team is trained and confident. A knowledgeable bartender can turn a hesitant guest into a high-margin sale with just a few well-placed words.
Spirit Preferences: Tequila Takes the Crown
When it comes to base spirits, tequila is the undisputed leader, preferred by 46% of cocktail drinkers. Followed by flavored vodka, and whiskey, each preferred by nearly one in three. Plain vodka, light rum, sparkling wine, gin, and flavored or spiced rum follow closely behind.
These spirits should be staples on any back bar, as their popularity is also reflected in the top-performing classic cocktails. The Margarita remains the undisputed champion across all age groups, with a remarkable 55% of over-55s choosing it when drinking out. The mimosa follows, resonating strongly with under-35s, alongside other younger crowd favorites like the daiquiri and piña colada.
Profitability vs. Popularity: Know the Difference
Cocktail performance can vary significantly depending on the metric considered. While the margarita wins on volume, it doesn’t top the charts for spend. That honor goes to the Caipirinha, which drives the highest average check value. Meanwhile, the Manhattan and negroni command the highest prices per serve—nearly double that of a Sex on the Beach. Guests are clearly willing to pay more for a well-made classic.
And then there’s the old fashioned—the Swiss Army knife of cocktails. It doesn’t top any single metric, but it performs consistently well across the board. If you’re looking for a reliable, high-performing drink to anchor your menu, this is it.
Timing Is Everything — Pay Attention to the Clock
Friday and Saturday are the big hitters, with Saturday leading in volume and check value. But don’t overlook the weekdays. Thursday is the most lucrative non-weekend day across most dayparts, with the margarita and old fashioned performing particularly well.
Dissecting consumption times further, our data reveals that cocktail velocity increases throughout the day, peaking in the early evening. Cocktail sales peak between 6pm and 10pm, but there’s money to be made earlier in the day, too. Drinks like the bellini and mimosa shine between 11am and 3pm, perfect for brunch and daytime sipping. And if you’re looking to drive weekday traffic, consider pushing juleps and Collins-style drinks—they perform better early in the week than on weekends.
Strategy Over Guesswork
At first glance, the cocktail category might seem unpredictable. Different drinks perform better at different times, on different days, with different audiences. But that’s actually its greatest strength. With such a wide range of flavors, formats, and price points, cocktails offer unmatched flexibility.
The key is strategy. Know your audience. Understand your peak times. Train your staff. And most importantly, use data to guide your decisions. Whether your goal is to drive volume with crowd-pleasers or maximize revenue with high-margin classics, there’s a cocktail strategy that fits.
Bottom line?
Cocktails aren’t just a trend—they’re a business opportunity. And with the right approach, they can be your most profitable pour.
Want to dig deeper into the data? CGA by NIQ’s Cocktail Sales Tracker and On Premise Cocktails Report offer a comprehensive view of what’s working, where, and why.
Matthew Crompton is the Vice President of Beverage Alcohol On Premise (Americas) for CGA by NielsenIQ (NIQ). Since joining CGA Strategy in January 2010, Matt has risen through the CGA ranks, becoming an expert in all things On Premise. He has managed and provided consultancy for some of the largest BevAl manufacturers across Europe and the Americas. Originally from the north of England, Matt has embraced American life at every opportunity since relocating to Chicago in 2015.
CGA by NIQ provides definitive On Premise consumer intelligence that reveals new pathways to growth for the world’s most successful food and drink brands. With more than 30 years of best-in-class research, data, and analytics, CGA by NIQ provides the Full View(TM).
CGA by NIQ works with food and beverage suppliers, consumer brand owners, wholesalers, government entities, pubs, bars, and restaurants to protect and shape the future of the On Premise experience. Using the most complete and clear understanding of measurement and insights, CGA by NIQ provides a competitive edge to guide winning strategies for On Premise businesses.
NIQ was founded in 1923 and is an Advent International portfolio company. For more information, visit NIQ.com or www.cgastrategy.com.
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