Global alcohol market analysts, IWSR, has said that RTDs continue to be the growth category to watch in beverage alcohol as consumers widen their purchase channels and occasions and drink more frequently.
According to IWSR’s RTDs Strategic Study 2025, volumes in 10 of the world’s leading markets (Australia, Brazil, Canada, China, Germany, Japan, Mexico, South Africa, UK, US) – accounting for 82 per cent of global volumes – grew by two per cent in 2024. Category value rose by four per cent over the same timescale and RTDs now have a 3.5 per cent share of total beverage alcohol (TBA) servings in these markets, up from 1.1 per cent in 2014.
IWSR’s Head of RTD Insights, Susie Goldspink said: “In an increasingly competitive TBA market, RTDs are the beacon of hope.
“The biggest growth opportunities lie in established markets where RTDs already hold a TBA volume share of more than five per cent. Despite a recent slowing of growth, RTDs will continue to gain share of TBA, particularly in the strongholds of the US and Canada, which are more diverse RTD markets, and in Japan, although it offers less product diversity.”
Across the 10 key markets, IWSR forecasts predict that RTDs’ share of TBA servings will reach four per cent by 2029, up from two per cent in 2019. The category has a particularly strong TBA servings share in the US (eight per cent in 2024), Canada (eight per cent), Australia (nine per cent) and Japan (13 per cent).
The IWSR report also highlights key drivers within the RTD category:
- Frequency not recruitment driving growth
“Contrary to previous insights suggesting moderation and reduced consumption among younger demographics, Gen Zs are actually driving higher consumption frequency across RTD categories,” Goldspink said. “Thus, they are an expanding consumer base that presents opportunities for brands to capture long-term market share.”
As the RTD market matures consumer recruitment into the category has slowed, with just five per cent of RTD drinkers being new to the category in 2024. Volume growth is currently being driven by increased consumption by existing RTD drinkers.
- Flavour is crucial
Flavour is the most influential factor in RTD purchase decisions across all age groups, ahead of price. According to IWSR research, citrus flavours – especially lemon – continue to be most popular, but there has been a reduction in lime and grapefruit launches, giving way to NPD focused more on tropical and strawberry flavours.
“Beyond flavour, alcohol content has become a more significant driver of choice among RTD consumers, with buyers seeking out both high- and low-ABV products,” adds Goldspink. “As brand innovation moves away from mid-range ABVs, producers should prioritise diversifying strength options to cater to different occasions and preferences.”
- The threat to wine
Since 2019, across the 10 key markets, the beer category’s loss of servings to RTDs has slowed, while the shift away from wine has accelerated. “While beer is the beverage most buyers consumed before switching to RTDs, wine is substituted more on a relative basis across markets, except in Australia and Germany,” says Goldspink.
However, the line between canned wine and RTDs has become increasingly blurred, with the rival categories often sharing shelf space. Goldspink added: “This convergence creates opportunity in the struggling wine category. Canned wine products offer the same convenience as RTDs and, often, the same appealing branding, convenience and positioning.”
- On-premise growth
As the RTD category continues to expand and mature, growth is increasingly coming from the on-trade, as well as on-the-go and ecommerce channels. These segments tend to attract younger consumers who favour impulse purchases and immediate consumption.
According to IWSR data, the on-trade accounted for eight per cent of RTD volumes across the 10 key markets in 2021, rising to 12 per cent in 2024.
- Brand extensions
The IWSR research conducted in seven markets, including Australia saw a generally positive view of RTD extensions of spirit brands. But the data suggests there could be some cost to the image of premium brands.
Goldspink said: “Across most markets, RTD extensions of spirits brands are seen as cool, fun products that consumers want to try.
“However, such extensions can compromise a brand’s premium positioning and special-occasion appeal, suggesting that it may be beneficial to use mainstream brands for RTDs instead of premium ones.”