Canned Cocktails Are Saving the Alcohol Industry: How RTDs Became the $76 Billion Bright Spot in a Declining Market
The alcohol industry is in crisis. Beer sales are down. Wine is collapsing. Spirits revenue has fallen for the first time in 30 years. Global alcohol giants have lost over $830 billion in market value as consumption plummets to 90-year lows.
But in this wreckage, one category is thriving: ready-to-drink (RTD) cocktails.
While beverage alcohol remained under pressure throughout 2025 with dollar declines across beer, wine, and spirits driven by sustained volume softness, RTDs continued to be the most reliable growth engine, now accounting for over 12% of total alcohol dollars SOURCE. The global RTD alcoholic beverage market is forecasted to be worth $37.97 billion in 2026 and is expected to achieve $76.06 billion by 2035 with a compound annual growth rate of 8.03% SOURCE.
This isn't a modest uptick in a niche category. This is explosive growth—116.45% over the next decade—in the only alcohol segment that's actually expanding while everything else contracts SOURCE. RTDs have emerged as the lifeline for an industry facing existential challenges, offering a blueprint for survival in an era when traditional drinking culture is dying.
The Numbers That Tell the Story
The contrast between RTD performance and traditional alcohol categories is stark and growing starker.
In 2025, spirits-based RTDs surged approximately 20%, while wine-based RTDs climbed 14%—at the exact same time overall spirits revenue fell 4.3% and wine revenue dropped 6.3% SOURCE. Hard seltzers, once the darling of the RTD category, plummeted more than 15% in value, but cocktail-style RTDs more than compensated SOURCE.
The U.S. ready-to-drink cocktails market size was valued at $903.4 million in 2024 and is anticipated to grow at a compound annual growth rate of 15.3% from 2025 to 2030 SOURCE. Other estimates place the U.S. market even higher, projecting growth from $860 million in 2024 to $2.67 billion by 2033 at a compound annual growth rate of 13.44% SOURCE.
The global ready-to-drink cocktails market was estimated at $3.21 billion in 2024 and is anticipated to grow at a compound annual growth rate of 15.4% from 2025 to 2030 SOURCE. Another analysis valued the global market at $1.117 billion in 2024, estimating it will reach $3.047 billion by 2033 with a compound annual growth rate of 11.8% SOURCE.
For broader RTD categories including hard seltzers and flavored malt beverages, the ready-to-drink canned cocktail market is projected to grow from $21.15 billion in 2025 to $37.17 billion by 2035, expanding at a compound annual growth rate of 5.8% SOURCE.
Perhaps most telling: while category growth is slowing overall, RTDs are outperforming beer, wine, and spirits, and now have a 3.5% share of total beverage alcohol in 10 of the world's leading markets for RTDs, up from a 1.1% share in 2014 SOURCE. In the United States, the RTD category is expected to reach a 9% share of the total beverage alcohol sector by 2029 SOURCE.
In 2023, over 1.6 billion liters of ready-to-drink cocktails were consumed globally, reflecting a notable shift from traditional cocktail consumption SOURCE. In the United States alone, more than 64% of millennials reported purchasing RTD cocktails in the past year SOURCE.
Why RTDs Are Winning While Everything Else Is Losing
The RTD explosion isn't random. It's a perfect alignment of consumer trends, generational preferences, and market conditions that have left traditional alcohol categories struggling while canned cocktails thrive.
Convenience culture drives the category's foundation. Modern consumers, particularly millennials and Gen Z, prioritize convenience and constantly seek on-the-go beverage options that fit busy schedules SOURCE. RTD cocktails offer a hassle-free alternative to traditional cocktail preparation, eliminating the need for multiple ingredients and mixing equipment SOURCE.
This convenience is particularly appealing for outdoor activities, social gatherings, and at-home consumption SOURCE. Increasing urbanization and a shift towards smaller households are also driving demand for convenient, single-serve beverage options SOURCE.
The high-paced lifestyle of American consumers has fueled demand for convenient, ready-to-drink alcoholic products that remove the hassle of mixing and preparation, making them ideal for home entertainment, outdoor parties, and travel SOURCE. Canned and bottled RTD cocktails have become extremely popular as consumers look for easy-to-carry, portable solutions SOURCE.
Premiumization meets accessibility in RTD cocktails in ways traditional categories have failed to achieve. The premiumization trend—once a bright spot for spirits and wine—has "all but died" for those categories, with spirits and wine revenue falling significantly SOURCE. But premiumization thrives in RTDs.
Spirit-based RTDs command premium positioning in the market SOURCE. Up to 25% of RTD drinkers say they would pay more for a spirit-based RTD than a malt-based one SOURCE. Over 48% of RTD cocktails are priced above $3 per 250ml unit in North America SOURCE.
Craig Chapman, head of brands at UK-based Global Brands, explained: "Premium and spirit-based RTDs have emerged as top performers in the category. Products that lean into premiumisation can drive wider growth" SOURCE.
The rise of premiumization and a growing appreciation for authentic cocktails is a key driver, with consumers willing to pay more for RTDs made with genuine spirits and high-quality ingredients SOURCE. Many premium brands use high-quality spirits, natural flavors, and unique flavor profiles to differentiate themselves and appeal to discerning palates SOURCE.
Generation Z and millennials—the demographics abandoning traditional alcohol—embrace RTDs enthusiastically. While Gen Z drinks 30% less alcohol overall than previous generations, when they do drink, they favor RTD formats. Millennials and Gen Z consumers prioritize convenience, portability, and flavor experimentation, driving the market for RTD cocktails SOURCE.
Their willingness to adopt new formats and innovations in alcoholic beverages further stimulates demand for these RTD options SOURCE. Consumers, especially millennials and Gen Z, are drawn to RTDs as an easy-to-enjoy option for social gatherings, outdoor activities, and at-home consumption SOURCE.
Young adults aged 18-34 are at the forefront of the RTD trend SOURCE. The convenience of sipping a high-quality cocktail without a bartender has encouraged RTD use, particularly among Gen Z and millennial consumers who want quality and convenience in their alcoholic beverage consumption SOURCE.
Economic pressures paradoxically favor RTDs. With inflation rising, many consumers cut back on alcoholic beverage consumption to save money SOURCE. In this environment, RTDs often serve as an "affordable luxury"—consumers can enjoy premium cocktail flavors at a lower price point than buying full bottles of spirits SOURCE.
Survey data show that in 2023, roughly 45% of alcohol buyers in major markets purchased an RTD in the past year, indicating broad interest despite economic headwinds SOURCE. The growth of RTD cocktails is fueled by factors such as increasing demand for premium products and growing mixology trends SOURCE.
The Spirit-Based RTD Revolution
Not all RTDs are created equal. Within the category, a clear hierarchy has emerged—and spirit-based cocktails dominate.
The U.S. spirit-based RTD cocktails market is anticipated to witness a compound annual growth rate of 22.6% from 2025 to 2030, fueled by a desire for premium, authentic cocktail experiences without the hassle of mixing SOURCE. Spirit-based RTD cocktails are anticipated to witness a growth rate of 22.9% from 2025 to 2030, fueled by a desire for premium, bar-quality experiences in a convenient format SOURCE.
Spirit-based RTDs led the product type segment, holding a 47.8% market share in 2024 SOURCE. Spirit-based RTD cocktails are leading the U.S. market with 56.8% share in 2025 because they deliver a more authentic cocktail experience compared to malt- or wine-based alternatives SOURCE.
The key trend here is the use of premium spirits and authentic cocktail recipes, offering consumers a taste of their favorite cocktails without the effort of preparation or the need to visit a bar SOURCE. This segment benefits from the perception of higher quality and sophistication, appealing to consumers willing to pay a premium for a more elevated drinking experience SOURCE.
Brands are focusing on replicating bar-quality cocktails in a convenient format, often featuring well-known spirit brands or crafting unique, in-house spirit blends SOURCE. Consumers recognize vodka, tequila, rum, and whiskey as classic bases for popular mixed drinks, making spirit-based RTDs feel closer to traditional bar offerings SOURCE.
This authenticity resonates strongly with younger drinkers, particularly Millennials and Gen Z, who seek both convenience and premium taste in a ready-made format SOURCE. Spirits-based RTDs represent 79.8% of total RTD volume SOURCE.
Globally, spirit-based RTD volumes have grown, while wine- and malt-based RTDs have declined: in 2022, spirits-RTDs were up 5% versus down 3% for wine and down 4% for malt SOURCE. In many markets, spirit-based RTDs carry a premium, with up to 25% of RTD drinkers willing to pay more for a spirit-based RTD than a malt one SOURCE.
Spirit-based RTD cocktails are one of the quickest-growing segments in the U.S. market, with sales driven by vodka, rum, tequila, and whiskey-based cocktails SOURCE. Favorite flavors include margaritas, whiskey sours, and mojitos, giving consumers the bar experience at home or on-the-go SOURCE.
Due to premiumization trends, spirit-based RTDs now often come with top-shelf liquors, natural flavorings, and craft-style mixes SOURCE. The segment is also being helped by celebrity endorsements and partnerships with well-known distilleries SOURCE.
The Hard Seltzer Crash and the Cocktail Rise
The RTD category's evolution tells an instructive story about consumer sophistication and market maturation.
Hard seltzers, once the explosive growth driver of the RTD category, have crashed. Hard seltzers are down 7.4% in the latest period, with values declining more than 15% SOURCE. After years of rapid growth, hard seltzers are facing category fatigue, with consumers shifting to more flavorful alternatives like spirit-based cocktails and flavored malt beverages SOURCE.
Saturation and flavor fatigue have taken hold in the hard seltzer category SOURCE. Hard seltzers have also dominated the low-calorie alcohol segment, posing a competitive threat to RTD cocktail brands seeking to appeal to health-conscious consumers SOURCE.
But as hard seltzers decline, spirits-based RTDs are up 20% and wine-based RTDs up 14%, indicating a shake-out of once-hot niches SOURCE. The rise of more complex, cocktail-like RTDs is replacing hard seltzers' role SOURCE.
The shift reflects consumer evolution from simple, lightly flavored alcoholic sparkling water toward sophisticated, cocktail-forward products that deliver genuine flavor complexity and authentic drinking experiences. RTD new-product launches peaked in 2021 with over 3,300 new RTD products launched globally, but in the first half of 2024 there were fewer than 1,000 SOURCE.
This drop means fewer new flavors cluttering shelves, but it also raises the bar for each launch's impact SOURCE. While launch volumes have shrunk, the effectiveness of new launches has improved, as producers are more strategic and targeted SOURCE.
The RTD category is consolidating, with brands focusing on fewer, bigger innovations—such as high-ABV cocktails and premium ingredients—rather than endless variations SOURCE.
Packaging: Why Cans Dominate
The overwhelming preference for canned RTDs over bottles reveals important insights about consumer priorities and usage occasions.
Canned RTD cocktails lead the packaging category, valued for convenience, portability, sturdiness, and eco-friendliness SOURCE. Aluminum cans are lightweight and easily recycled, becoming popular among environmentally responsible consumers SOURCE.
Cans dominate the U.S. market with 77.6% share in 2025 due to portability, recyclability, and appeal for on-the-go lifestyles SOURCE. Canned RTD cocktails are easily found in liquor stores, supermarkets, and online stores, with single-serve and multipacks to suit varied tastes SOURCE.
The growing acceptance of cocktails in a can at bars, concerts, and outdoor festivals is further boosting market expansion SOURCE. The demand is especially high in single-serve packaging formats such as 250ml cans SOURCE.
In Europe, over 70% of RTD cocktails now use recyclable aluminum cans SOURCE. Sustainability in packaging has become a significant trend, with recyclable aluminum cans appealing to eco-conscious consumers SOURCE.
Bottled RTDs maintain a niche. The U.S. bottled RTD cocktails market is anticipated to witness a growth rate of 15.8% from 2025 to 2030, offering perceived premiumization and a more traditional cocktail experience SOURCE.
Glass bottles evoke a sense of sophistication and craftsmanship, appealing to consumers seeking a higher-end, bar-quality cocktail SOURCE. Many premium brands opt for glass bottles to differentiate themselves and convey a sense of authenticity and luxury SOURCE.
The transparency of glass allows consumers to see the color and clarity of the cocktail, enhancing visual appeal and perceived quality SOURCE. While bottles may be less portable than cans, they remain popular for at-home consumption, dinner parties, and gifting occasions, appealing to consumers who prioritize the aesthetic and sensory experience of enjoying a cocktail SOURCE.
Innovation and Flavor: The Experimentation Engine
RTD success relies heavily on continuous flavor innovation and willingness to experiment with unconventional combinations.
In 2023, there were over 1,200 new flavor variants introduced worldwide, indicating strong innovation efforts from manufacturers SOURCE. Botanical-infused and tropical fruit-flavored cocktails gained significant traction, with citrus and berry profiles accounting for 41% of global RTD cocktail sales SOURCE.
Flavored RTD canned cocktails are set to lead the flavor segment, capturing 68.3% of market share in 2025 SOURCE. This dominance is attributed to their sensory appeal, diverse taste profiles, and compatibility with seasonal and lifestyle-based product launches SOURCE.
Consumers increasingly prefer bold, fruity, and herb-infused flavors such as citrus, berry, tropical, ginger, and botanical infusions, which allow for greater personalization and experimentation SOURCE. The trend of flavored innovation is surging, with brands releasing seasonal, herb-infused, and exotic global variants to sustain consumer interest SOURCE.
Among specific spirits, vodka remains the most popular spirit base, but tequila is rising in prominence SOURCE. Gin-based cocktails are projected to lead the market with a 55.8% share in 2025 SOURCE.
Gin-based RTDs are perceived as premium and sophisticated, aligning well with health-conscious and flavor-exploring consumers SOURCE. Products often highlight natural botanicals, low sugar content, and clean labels, enhancing their marketability SOURCE.
Brands are leveraging limited-edition flavors and seasonal variants to keep engagement high and shelf visibility strong SOURCE. Innovation in unique flavor profiles, including those inspired by craft cocktails, is a major trend SOURCE.
Health-Conscious Formulations: The Wellness Intersection
RTDs have successfully positioned themselves at the intersection of indulgence and wellness—a balance traditional alcohol categories have struggled to achieve.
Consumers are moving towards health-conscious and premium drinking options, driving demand for low-calorie, organic, and gluten-free RTD cocktails SOURCE. Brands are launching low-sugar, keto-friendly, and all-natural ingredient cocktails for health-conscious drinkers SOURCE.
A recent survey by Distill Ventures highlights this shift, with 58% of millennials and 66% of Gen Z consumers in the U.S. actively seeking low or no-alcohol options SOURCE. Leading brands like Diageo have responded by launching low-alcohol RTD cocktails such as Ketel One Botanical and Smirnoff Zero Sugar Infusions, which offer a range of flavors with an alcohol by volume from 3.6% to 4.5% SOURCE.
The rise of health and wellness trends further fuels this market shift SOURCE. According to Mintel, 37% of consumers consider low or no-alcohol options when making purchasing decisions SOURCE.
There is a growing shift toward low-alcohol, low-calorie, and functional RTD cocktails as health-conscious drinking gains ground SOURCE. Low-calorie, low-sugar, and gluten-free RTD options are booming opportunities that align with consumer interest in clean-label alcoholic products SOURCE.
Many brands highlight lower sugar, fewer calories, and clean-label ingredients, aligning with wellness-focused lifestyles SOURCE. Modern RTDs often feature high-quality spirits, natural flavors, and innovative recipes, appealing to consumers who want sophistication without effort SOURCE.
Hybrid products combining spirits with functional ingredients such as CBD or adaptogens are on the rise, with over 95 brands globally introducing RTD cocktails with wellness-focused components in 2023 SOURCE.
Distribution Channels: Getting RTDs to Consumers
The success of RTDs depends not just on product quality but on strategic distribution that meets consumers where they shop.
Supermarkets and hypermarkets lead U.S. RTD cocktail sales with 51.7% share in 2025, offering variety, competitive pricing, and consumer trust, supported by reliable retail regulations and convenient bulk purchasing options SOURCE.
The sales of ready-to-drink cocktails through hypermarkets/supermarket channels accounted for a revenue share of 45.6% in 2024 SOURCE. Hypermarkets and supermarkets are pivotal channels for RTD cocktail distribution, leveraging their wide reach and established customer base SOURCE.
These retailers offer a convenient one-stop shopping experience, allowing consumers to purchase RTDs alongside their regular groceries and household items SOURCE. The availability of RTDs in supermarkets is particularly appealing for planned purchases and social gatherings SOURCE.
Strategic placement within the store, such as near the beer and wine sections or in dedicated RTD displays, can significantly impact sales SOURCE. Promotional activities like in-store sampling, discounts, and bundle deals drive trial and repeat purchases SOURCE.
Retailers are dedicating more shelf space to RTDs as consumer demand stays hot SOURCE. Canned RTD cocktails are easily found in liquor stores, supermarkets, and online stores SOURCE.
The online segment of the U.S. ready-to-drink cocktails industry is estimated to grow at a compound annual growth rate of 17.5% from 2025 to 2030, offering consumers unparalleled convenience, selection, and access SOURCE.
The growth of alcohol delivery services and online alcohol sales has greatly accelerated the RTD cocktail market in the U.S. SOURCE. Most states have eased alcohol delivery regulations, enabling consumers to buy RTD cocktails from apps, websites, and third-party delivery services such as Drizly and Instacart SOURCE.
E-commerce continues to influence the market positively, as 24% of RTD cocktail purchases in developed regions were made online in 2023, a 13% increase from the previous year SOURCE. The increasing popularity of e-commerce and online delivery services has further boosted accessibility, allowing consumers to easily purchase their favorite spirit-based RTD cocktails from the comfort of their homes SOURCE.
Regional Growth Patterns: Where RTDs Are Exploding
While North America leads in RTD adoption and value, growth patterns vary significantly by region, offering different strategic opportunities.
Ready-to-drink cocktails in North America held over 32.5% of global revenue in 2024, fueled by a combination of convenience and a desire for premium, diverse options SOURCE. North America holds a 27.2% market share in the global RTD alcoholic beverage market as of 2024 SOURCE.
Ready-to-drink cocktails in the U.S. are expected to grow at a compound annual growth rate of 15.3% from 2025 to 2030, fueled by a desire for convenience and the increasing popularity of premium, flavorful alcoholic beverages SOURCE.
The United States leads the global ready-to-drink cocktails market, accounting for over 34% of total global consumption in 2023, with states like California, New York, and Texas representing high consumption clusters SOURCE.
For global RTD growth including hard seltzers, IWSR predicts compound annual growth rate volume rises of 1% for the U.S., 3% for South Africa, 7% for Brazil, and 3% for Japan from 2024 to 2029 SOURCE. Brazil and South Africa will be key engines of RTD volume growth into 2026 SOURCE.
Asia Pacific is estimated to grow at the highest compound annual growth rate over the forecast period 2025-2030 SOURCE. Global RTD canned cocktail sales are set to grow at a 5.8% compound annual growth rate from 2025 to 2035, with South Korea leading at 5.9%, the USA at 5.9%, Japan and the EU at 5.8%, and the UK at 5.7% SOURCE.
South Korea's growth is driven by aesthetic branding and K-pop tie-ins, while the USA benefits from direct-to-consumer models and celebrity-backed lines SOURCE. Japan and the EU are supported by mature cocktail culture and retail innovation SOURCE.
The RTD alcoholic drink market in the UK is expected to grow at a compound annual growth rate of 5.5% from 2025 to 2035, above the global average, driven by strong consumer preference for convenience beverages, established pub culture, and increasing outdoor consumption occasions SOURCE.
Celebrity Endorsements and Cultural Moments
The RTD category has become a magnet for celebrity involvement and brand collaborations that amplify visibility and cultural cachet.
Celebrity and influencer collaborations are shaping the trend landscape, with more than 75 new RTD cocktail brands launched in 2023 with celebrity endorsements, helping capture attention on social media platforms and expanding appeal among younger demographics SOURCE.
Celebrity-backed launches, bartender collaborations, and smart packaging features like QR codes for cocktail pairing suggestions are becoming key engagement tools SOURCE. The segment is being helped by celebrity endorsements and partnerships with well-known distilleries SOURCE.
Recent major launches illustrate the category's momentum and innovation. In September 2024, The Coca-Cola Company and Bacardi partnered to launch Bacardí rum and Coca-Cola as a ready-to-drink pre-mixed cocktail, to be released in Mexico and select markets across the European Union in 2025, with a global standard of 5% ABV SOURCE.
In August 2024, Nowadays, a prominent brand in the THC beverage market, broadened its offerings to include ready-to-drink canned cocktails containing 5 mg of hemp-derived THC in each 12-oz. can SOURCE.
In February 2025, Pernod Ricard USA's Absolut brand introduced new ready-to-serve and ready-to-drink flavors, extending its Absolut Ocean Spray RTD brand and Absolut RTD Cocktails SOURCE.
In December 2024, Suntory Holdings launched new Japanese-inspired sparkling cocktail MARU-HI, expanding its US ready-to-drink portfolio, with a launch in California in January 2025 and expected expansion to other states, aligning with Suntory's vision to be a top global RTD company by 2030 SOURCE.
In August 2025, Pernod Ricard partnered with fruit and beverage company Dole to launch a new range of ready-to-drink cocktails combining Pernod Ricard's expertise in premium spirits with Dole's reputation for high-quality fruit products SOURCE.
The Regulatory Landscape: Challenges and Opportunities
RTD growth faces regulatory complexity that varies dramatically by jurisdiction, creating both obstacles and competitive moats.
Government policies are beginning to catch up with the RTD trend SOURCE. In the U.S., trade and licensing reforms could significantly impact RTDs SOURCE.
In 2025, new tariffs were imposed on imported goods: most EU beverages including RTDs now carry a flat 15% import duty, up from nearly 0%, raising costs for imported RTDs (especially spirits-based ones from Europe) and potentially accelerating domestic production SOURCE.
Texas is considering SB2255, which would allow spirits-based RTDs (≤17% ABV) to be sold in grocery and convenience stores starting in September 2025 SOURCE. Alabama recently authorized low-ABV spirits RTDs in supermarkets, and similar bills are proposed in Florida, Pennsylvania, and Michigan SOURCE.
According to trade groups, about two-thirds of U.S. consumers support allowing spirits-based RTDs alongside beer/wine in retail SOURCE. If enacted, these changes would dramatically expand retail access for RTDs in major markets SOURCE.
Alcohol distribution and sales in the U.S. are both state and federal regulated, creating different limitations by region SOURCE. Some states have rigorous licensing laws or taxation regulations that restrict the presence of RTD cocktails in some retail stores SOURCE.
Some alcohol-by-volume limitations also limit how potent an RTD cocktail can be, making it difficult for brands to provide higher-proof products SOURCE. These regulatory barriers can delay market growth and pose logistical issues for producers SOURCE.
In the United States, the Alcohol and Tobacco Tax and Trade Bureau imposes strict rules on labeling, advertising, and distribution, varying by state, creating logistical hurdles for companies aiming to market their products nationwide SOURCE. In Europe, varying national regulations further complicate distribution SOURCE.
Why Traditional Categories Can't Compete
The RTD phenomenon highlights fundamental failures in how beer, wine, and spirits companies have approached evolving consumer needs.
Wine continues its downward trend, with estimated volumes down about 5% in 2025, with elevated inventories compounding the pressure SOURCE. While premium wine offerings show some resilience, Gen Z and younger millennials are increasingly turning away from wine altogether, chasing RTDs and spirits instead SOURCE.
Wine is losing cultural traction, with legacy loyalty not enough to sustain growth SOURCE. Without bold innovation in packaging and flavor, wine brands risk losing relevance SOURCE.
Beer saw a modest 0.6% drop in dollar sales SOURCE. Most consumers continue to favor craft beers, wine, or homemade mixed drinks over pre-mixed drinks initially, but this preference is shifting SOURCE.
The U.S. spirits market declined by 2% in 2023, marking the first decline in almost 30 years SOURCE. Some traditional "premiumization" trends are slowing, with SipSource data showing spirits and wine revenues dipped in late 2024 partly due to rapid RTD growth SOURCE.
RTDs are the new center of gravity, with brands that invest in single-serve innovation winning SOURCE. The RTD cocktail segment is confronted with intense competition from traditional alcoholic drink segments such as beer, hard seltzers, and conventional spirits SOURCE.
The Premium RTD Strategy: Ready-to-Serve
Within RTDs, a specialized subcategory is emerging that targets even higher price points and occasions.
Ready-to-serve (RTS) drinks often carry higher ABV and are sold in shareable formats (500 ml+ bottles), effectively premiumizing RTDs SOURCE. RTS is seen as a premiumization lever, especially in the on-trade: these larger cocktails help bars lacking mixology staff still offer cocktails SOURCE.
The U.S. leads in RTS activity, with brands such as Tarquin's Gin and Three Olives launching multi-serve cocktails SOURCE. Brands offering RTS cocktails often highlight their cocktail-accurate flavors and higher ABV SOURCE.
Many RTS launches are cocktails with higher alcohol content (often 10-12% ABV) sold in both single-serve cans and larger bottles SOURCE. While RTS is a smaller sub-category, it remains relevant for high-end occasions, allowing brands to capture special occasions and bar segments SOURCE.
Challenges Facing RTD Growth
Despite explosive growth, the RTD category faces legitimate headwinds that could slow momentum.
Extensive shelf life brings difficulties with flavor consistency and quality retention in the RTD canned cocktail industry, particularly for cocktails with citrus or dairy-based elements which are perishable SOURCE. Alcohol content limits, labeling requirements, and taxation all differ country by country and region by region, making it more challenging to distribute internationally SOURCE.
RTD cocktails tend to market themselves as premium offerings, which may limit uptake in price-sensitive markets where consumers still lean toward beer and hard seltzers due to affordability and brand familiarity SOURCE. Higher pricing and lack of familiarity with brands can discourage budget-conscious consumers from making the switch SOURCE.
The challenge of securing listings in retailers has increased as they become more selective with their stock SOURCE. Producers are dealing with inflation combined with rising packaging costs and the use of premium ingredients, which means brands have to work harder to ensure they are offering consumers value for money SOURCE.
RTD brands need to differentiate themselves by offering distinctive flavors, packaging, and marketing to remain competitive SOURCE. The global ready-to-drink cocktails market faces significant challenges related to alcohol distribution, which can impact market growth SOURCE.
What Industry Leaders Are Saying
Executives and analysts across the alcohol industry recognize RTDs as both the present reality and future direction.
Britt West, chief commercial officer of High Noon owner Gallo Wine & Spirits, described 2025 as a challenging year for RTDs as the category normalizes, but he is optimistic about spirit-based RTDs SOURCE. According to West, High Noon is the leading spirit-based hard seltzer in the U.S. SOURCE.
Craig Chapman, head of brands at UK-based Global Brands, observed: "Premium and spirit-based RTDs have emerged as top performers in the category. Products that lean into premiumisation can drive wider growth" SOURCE.
Market forecasts from Grand View Research peg the U.S. RTD cocktail market at over $900M in 2024, with projected compound annual growth rate of 15.3% through 2030, with this growth fueled by flavor innovation, portability, and younger consumers' preference for convenience and discovery SOURCE.
Chapman predicts increased demand for "bar-quality experiences straight from the can or bottle" SOURCE. He also cites the trend for "chaos-driven packaging" that drives consumer engagement, including BuzzBallz's "toy-like cocktails" and Liquid Death's format of "putting water in a craft beer can" SOURCE.
The Major Players: Who's Winning the RTD War
The RTD sector is fiercely competitive, featuring both legacy global beverage companies and dynamic craft players SOURCE.
Prominent spirits conglomerates Diageo, Bacardi, Pernod Ricard, Brown-Forman, Anheuser-Busch InBev, and Suntory are increasingly leveraging their brand strength to launch RTD offerings SOURCE. They often introduce premium innovations such as gluten-free options or eco-conscious packaging to appeal to health-conscious and sustainability-minded consumers SOURCE.
Constellation Brands, Inc., Diageo plc, Pernod Ricard SA, Anheuser-Busch InBev SA/NV, and Brown-Forman Corporation are the major companies operating in the ready-to-drink cocktails market SOURCE.
The Future: What's Next for RTDs
The RTD category's trajectory suggests continued evolution toward greater sophistication, health consciousness, and cultural integration.
We can expect continued diversification of RTD offerings, including more non-alcoholic mocktail RTDs (connecting with the low/no trend) and perhaps functional ingredients or unique flavor fusions SOURCE. To stand out, brands will need to emphasize quality, flavor, and branding that captures the "cool factor" of convenient cocktails in a can SOURCE.
Direct-to-consumer sales channels and sophisticated packaging are increasingly important for differentiation and reaching target audiences SOURCE. As brands focus on premiumization and sustainability, recyclable aluminum cans, clean ingredients, and mixologist-style formulations are shaping the next wave of product development SOURCE.
Emerging opportunities include premiumization and craft-style innovation, with brands focusing on high-quality ingredients, low-sugar options, and culturally inspired flavor profiles to attract health-conscious and younger demographics SOURCE.
Global Brands tapped into format innovation with its VK Squashka launch, which comes in a resealable Tetra Pak that "acts more like an oat-milk carton than a typical RTD" SOURCE. This kind of packaging disruption suggests continued experimentation beyond traditional cans and bottles.
Conclusion: The Category That Saved the Industry
The ready-to-drink cocktail phenomenon represents more than a trendy product category. It represents the alcohol industry's successful adaptation to fundamental shifts in consumer behavior, preferences, and values.
While overall alcohol consumption declined dramatically—falling to 90-year lows with global beverage alcohol volume forecast to decline 0.4% in 2025—RTDs surged forward, growing at double-digit rates and capturing increasing market share SOURCE.
The RTD category solved problems that plagued traditional alcohol:
Convenience without sacrificing quality
Premiumization at accessible price points
Health consciousness through low-calorie, low-sugar formulations
Portability for modern lifestyles
Authenticity through spirit-based recipes
Innovation in flavors and formats
Sustainability via recyclable packaging
Spirit-based RTDs are leading with projected compound annual growth rate of 22.6% from 2025 to 2030 SOURCE. The broader RTD alcoholic beverage market is expected to achieve $76.06 billion by 2035 SOURCE. This isn't a bubble—it's a fundamental restructuring.
The RTD revolution vindicated several important insights about modern consumers. They want convenience but not at the expense of quality. They'll pay premium prices for products that deliver authentic experiences. They prioritize health and wellness but still want indulgence. They embrace innovation and reject outdated formats.
For beer, wine, and spirits producers watching their traditional categories decline, the message is clear: adapt or die. The alcohol industry's future belongs to products that meet consumers where they are—mobile, health-conscious, time-starved, and looking for premium experiences in convenient formats.
RTD cocktails aren't just a bright spot in a declining market. They're the template for what comes next. The brands that recognize this and invest accordingly will survive. Those that cling to bottles, traditional formats, and outdated assumptions about drinking culture will follow hard seltzers into irrelevance.
The canned cocktail revolution is complete. The question now is whether the rest of the industry will learn its lessons before it's too late.