The prepared‐to‐drink (RTD) phase has been the shining star of the alcohol beverage world, rising by 2% in quantity final 12 months, in line with IWSR figures.
Whereas class progress is slowing, the sector is outperforming beer, wine, and spirits, and now has a 3.5% share of complete beverage alcohol (TBA) in 10 of the world’s main markets for RTDs (up from a 1.1% share in 2014).
Within the US, the RTD class is anticipated to achieve a 9% share of the TBA sector by 2029. From 2024 to 2029, IWSR predicts compound annual progress price (CAGR) quantity rises of 1% for the US, 3% for South Africa, 7% for Brazil and three% for Japan.
Britt West, chief business officer of Excessive Midday proprietor Gallo Wine & Spirits, described 2025 as a difficult 12 months for RTDs because the class normalises, however he’s optimistic about spirit‐based mostly RTDs.
An identical sentiment was echoed by Craig Chapman, head of manufacturers at UK‐based mostly World Manufacturers. “Premium and spirit‐based mostly RTDs have emerged as high performers within the class,” he says, including that “merchandise that lean into premiumisation can drive wider progress”.
In response to West, Excessive Midday is the main spirit‐based mostly arduous seltzer within the US, with greater than 65% class share.
In April, Gallo tapped into the arduous lemonade increase with the launch of Fortunate One. It has change into the second‐largest spirits‐based mostly lemonade RTD model (after Surfside) in simply seven months within the US, based mostly on IRI knowledge cited by West.
At World Manufacturers, the corporate is tapping into 90s nostalgia via its Hooch model. “To capitalise on the elevated demand for nostalgic merchandise, pushed by millennial buyers, this 12 months we launched our Hooch RTD in draught format for pubs and bars, together with vibrant faucet handles and one‐of‐a‐ form glassware within the iconic, nostalgic branding,” says Chapman.
As for the challenges going through the class, West notes “elevated competitors” and the “quickly evolving” client preferences – from flavours to ABV and codecs. He additionally mentions the problem of “market entry and distribution complexities” within the US, with customers confused over the variations in base sorts and the place to purchase them.
Chapman cites the problem of securing listings in retailers as they change into extra selective with their inventory. Producers are additionally coping with inflation, mixed with rising packaging prices and using premium substances, which implies manufacturers should work tougher to “guarantee they’re providing customers worth for cash”, Chapman explains.
By way of developments, Chapman believes there shall be elevated demand for “bar‐high quality experiences straight from the can or bottle”. He additionally cites the development for “chaos‐pushed packaging” that drives client engagement, together with BuzzBallz’s “toy‐like cocktails”, and Liquid Loss of life’s format of “placing water in a craft beer can”.
World Manufacturers tapped into this shift with its VK Squashka launch, which is available in a resealable Tetra Pak that “acts extra like an oat‐milk carton than a typical RTD”, says Chapman.
Breezer
Within the 90s and early 2000s, bottled drinks resembling WKD and Smirnoff Ice had been all the fad with younger adults because of their candy flavours, however disappeared over fears they appealed to kids. Now, these RTDs are making a return. Bacardi Breezer was just lately rebranded and introduced again to the UK due to “sturdy demand”, whereas Smirnoff Ice launched its first international marketing campaign this 12 months and unveiled a can format. Might 2026 be the 12 months of the alcopop?
BuzzBallz
Dubbed the “drink of the summer time” by The Guardian, BuzzBallz had made a giant splash amongst Gen Z within the UK and the US, and joined Sazerac’s portfolio final 12 months. With its distinctive bauble‐like container (together with the large 1.75l ‘Biggies’ format) and quirky advertising and marketing, the drink is gaining floor within the off‐commerce, and is about to beat UK pub big Wetherspoons.
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Pronounced ‘minus one‐9‐six’, Suntory’s Japanese canned vodka seltzer has shifted giant volumes in its residence market, and is aiming to develop globally. Already profitable in Australia, the RTD headed to the UK in 2024, bringing its distinctive proprietary freeze crush infusion know-how to the market. It entered the US this 12 months, the place it unveiled a strawberry flavour.
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