Although RTDs in the US is expected to return to total volume growth in the forecast period, this will be low, as the category is now experiencing the early stages of maturity. For the categories that traditionally dominated – hard seltzers (other RTDs) and malt-based RTDs – this means lower yearly growth rates.
As spirit-based RTDs is seeing sales growth, some states are changing their liquor laws to allow spirit-based RTDs to be sold in grocery retailers such as convenience stores. Channel expansion will be a critical opportunity for spirit-based RTDs, and related legislation in Texas is a particular bright spot for the category.
As an ageing population faces a shifting narrative about alcohol consumption being “safe at no amount”, the increasing channel activation of beverages with intoxicating cannabinoids is poised to steal volumes from traditional alcoholic drinks categories, including RTDs. While not a national trend, the regulatory ambiguity around hemp-derived cannabinoids is leading to their increased placement in drinks specialists and grocery retailers in states such as Illinois, Minnesota, and Washington.
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RTDs
RTD stands for ‘ready-to-drink’. Other terms which may be used for these products are FABs, alcopops and premixes. The RTDs sector is the aggregation of malt-, wine-, spirit- and other types of premixed drinks. These drinks usually have an alcohol content of around 5% but this can reach as high as 10% ABV. Premixes containing a high percentage of alcohol of around 15%+ combined with juice or any other soft drink are included here. RTDs are usually marketed as products to be drunk neat, with ice, or as a cocktail ingredient. Fruit-flavoured, vodka-based spirits with an alcohol content of between 16-21% are classified here. Examples: Alizé, Ursus Roter, Berentzen Fruchtige, Kleiner Feigling.
See All of Our DefinitionsThis report originates from Passport, our RTDs research and analysis database.
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