The Surge of the Ready-to-Drink Premixed Cocktails Market: Key Developments and Trends to Watch in 2024
The global market for ready-to-drink (RTD) premixed cocktails is witnessing explosive growth, as consumer demand shifts toward convenience without compromising on quality. As the preference for easy-to-consume, high-quality cocktails continues to rise, the RTD market is being shaped by new trends, innovations, and emerging consumer behaviors. In this article, we’ll explore the key developments in the RTD premixed cocktails market, why this category is so appealing to today’s drinkers, and how brands are adapting to keep up with demand.
A New Era for Cocktails: The Rise of RTDs
Ready-to-drink (RTD) premixed cocktails—also referred to as “canned cocktails,” “bottled cocktails,” or “pre-mixed drinks”—are quickly becoming a staple in the alcohol industry. What was once a niche offering, confined mostly to sugary, mass-produced drinks, has now evolved into a dynamic and rapidly expanding market offering a wide array of premium, flavorful options. The reasons for the surge are many, ranging from busy lifestyles to the desire for higher-quality, authentic cocktails without the need for bartending skills.
In fact, the global RTD cocktail market was valued at USD 23.12 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 12.6% from 2023 to 2030, according to market research data. But what’s driving this explosive growth? Let’s dive into the key factors and developments that are shaping the RTD cocktail market.
1. The Convenience Factor: RTDs Make Drinking Social and Easy
The primary draw for many consumers is convenience. People today lead busy lives and often don’t have the time or desire to make complex cocktails at home. With RTDs, consumers can enjoy a perfectly mixed cocktail in a can or bottle, ready to be enjoyed instantly. Whether at a BBQ, a picnic, or a tailgate party, RTDs are an easy choice for those who want a drink that requires zero preparation.
This is especially true in a post-pandemic world where social gatherings have become more spontaneous. Instead of making trips to bars, many individuals now prefer bringing cocktails with them to events, or simply enjoying them at home without the need for a stocked bar or bartender’s expertise.
Additionally, the portability of RTD drinks has made them a favorite among millennials and Gen Z, who are seeking drinks that align with their fast-paced, on-the-go lifestyles.
2. Premiumization: More than Just Beer and Vodka-Based Drinks
One of the key trends in the RTD cocktail market is the rise of premiumization. While earlier iterations of RTD drinks often consisted of basic vodka sodas or sugary mixers, today’s offerings are far more sophisticated and reflective of higher-quality ingredients.
Brands are increasingly using premium spirits, such as gin, tequila, rum, and whiskey, as the base for their RTD products. In addition to high-end spirits, these cocktails feature fresh, natural ingredients, real fruit juices, and high-quality mixers. There is also a shift toward craft cocktails, with brands striving to replicate the artistry of professional bartenders in a ready-to-drink format.
For example, brands like Cutwater Spirits and High & Dry are leading the way with elevated canned cocktails that feature high-end ingredients like real lime juice, natural syrups, and small-batch spirits. These products cater to consumers who want premium experiences but don’t want to sacrifice convenience.
The trend toward premium RTDs is also being driven by increasing consumer awareness about ingredients, sustainability, and the desire for authenticity. As consumers become more discerning, they expect their RTD drinks to align with their broader values, such as supporting local distilleries or opting for organic ingredients.
3. The Cocktail Renaissance: RTDs That Reflect Classic Cocktails
Another critical development in the RTD space is the shift towards classic and craft-inspired cocktails. Consumers are looking for traditional cocktails like Margaritas, Old Fashioneds, Mojitos, and Negronis in convenient, ready-to-drink formats. This resurgence of classic cocktails is a nod to the broader cocktail renaissance of the last decade, which has seen bartenders reviving old-school recipes while incorporating new techniques.
Brands have responded to this demand by offering ready-to-drink versions of well-known cocktails, delivering an authentic, high-quality drinking experience. For instance, On The Rocks has introduced a line of high-quality premixed cocktails that mirror those you’d find at a top-tier bar. These drinks are made with top-shelf spirits, so the consumer feels as though they’re enjoying a cocktail crafted by a professional mixologist, but with the ease of popping open a can.
Furthermore, RTD products that reflect local and regional tastes are gaining traction. For example, Tequila-based RTDs are becoming more popular as tequila continues to soar in popularity, especially in the U.S. market. Meanwhile, whiskey-based RTDs, such as Whiskey Sours and Whiskey Highballs, are also becoming increasingly common.
4. Health-Conscious Options: Low-Alcohol, Low-Sugar, and Non-Alcoholic RTDs
With the rising trend of health and wellness, the RTD cocktail market is also shifting to accommodate more health-conscious consumers. This includes the growth of low-alcohol and low-sugar options, as well as a rising demand for non-alcoholic or mocktail RTDs. As people become more conscious of their calorie intake, many brands are introducing RTD cocktails with fewer calories and less sugar, without compromising on taste.
Non-alcoholic cocktails (also referred to as “mocktails”) have become a key segment within the RTD market. As social attitudes toward drinking continue to evolve, there is a growing demand for premium mocktails that offer the same sophisticated flavors and experience of traditional cocktails—without the alcohol content.
For example, brands like Seedlip have gained immense popularity for their non-alcoholic spirit alternatives, while Heineken and Budweiser have expanded their portfolios to include alcohol-free beers and RTD mocktail options. With these drinks, consumers can indulge in the ritual of drinking without the aftereffects of alcohol, which is especially appealing among health-conscious consumers and those practicing moderation.
Moreover, there is an increasing trend toward functional RTDs that combine the benefits of botanicals, adaptogens, or superfoods, targeting those who want a drink that offers not only enjoyment but health benefits. Brands are experimenting with ingredients like ginger, turmeric, CBD, and matcha to give their RTDs an edge in the wellness space.
5. Sustainability and Eco-Friendly Packaging: A Growing Focus for RTD Brands
Sustainability has emerged as a critical concern in the food and beverage industry, and the RTD market is no exception. As the demand for eco-friendly products continues to grow, RTD brands are focusing on sustainable sourcing of ingredients, as well as eco-friendly packaging. Cans, once seen as less premium, are now being favored due to their recyclability and lower environmental impact compared to glass bottles.
In response to consumer demand, several RTD brands have introduced sustainable practices, such as using recycled aluminum, adopting plant-based packaging, or promoting carbon-neutral production processes. For example, Bacardi’s RTD cans are made from 100% recycled aluminum, and Cazadores Tequila has committed to using eco-friendly practices in their cocktail packaging.
The growing importance of sustainability is reflected in the increasing emphasis on traceability, ethical sourcing, and transparency in marketing. Many consumers want to know where the ingredients in their RTD drinks come from and whether they were sourced sustainably. Brands that can clearly communicate their environmental initiatives are likely to gain favor in an increasingly eco-conscious market.
6. The Competitive Landscape: Key Players and Market Consolidation
The RTD market has seen a proliferation of new entrants in recent years. Major alcohol brands, including Diageo, AB InBev, and Pernod Ricard, have been quick to introduce their own RTD products. These companies are leveraging their established distribution channels and brand recognition to tap into the rapidly growing market.
At the same time, smaller craft distilleries and startups have also seized the opportunity to introduce premium, innovative RTD products. This has led to a more competitive landscape in which larger players are acquiring smaller companies or forming strategic partnerships to increase their market share.
In 2023, Diageo acquired Roku Gin to expand its portfolio of RTD offerings, while AB InBev partnered with Craft House Cocktails to broaden its presence in the RTD market. These mergers and acquisitions highlight the consolidation occurring within the RTD market and indicate that the category is expected to continue growing and evolving in the coming years.
7. Global Trends: Regional Variations in RTD Preferences
While RTD cocktails are becoming a global phenomenon, regional preferences are still an important consideration for brands. For example, the U.S. market is dominated by vodka-based RTDs, such as vodka soda or vodka lemonade, while in Latin America, tequila and rum-based cocktails are more popular. In Europe, particularly in the UK and France, gin-based RTDs are enjoying substantial growth, thanks to the gin craze sweeping across the region.
Asian markets, particularly Japan and South Korea, are also showing a growing appetite for RTDs. Japanese whiskey and sake-based RTDs are gaining traction in these countries, with products like Suntory’s RTD Whiskey Highball leading the charge.
Brands that can localize their offerings and cater to the unique tastes of different regions are likely to outperform their competitors in an increasingly fragmented global market.
The RTD premixed cocktails market is poised for continued growth as consumers increasingly seek convenient, high-quality alternatives to traditional cocktails. With a focus on premium ingredients, health-conscious options, sustainability, and regional flavor profiles, brands are responding to evolving consumer preferences in innovative ways.
As technology and consumer tastes continue to evolve, we can expect to see even more customization, diverse flavor combinations, and functional benefits in RTD cocktails. Whether you’re a casual drinker or a cocktail connoisseur, the RTD market is providing new opportunities for people to enjoy the perfect drink, anytime, anywhere.