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‘Growing demand’ for RTDs in German on-trade

Ready-to-drink products are gaining a foothold in Germany, which presents a “growth opportunity” for the country’s on-trade, CGA by NIQ has noted.

RTD on-trade
CGA believe RTDs are an ‘underrepresented growth area’ in the German on-trade

Drawing from its Consumer Pulse Report – which surveyed 1,000 consumers aged 18 and over, across all German regions from 29 November to 2 December – CGA found that 35% of people have noticed an increase in RTD availability in Germany’s on-trade venues.

Furthermore, 39% of consumers would consider drinking RTDs in hospitality venues, led by Gen Z consumers and Berlin residents.

While interest grows, just 22% of consumers have brought an RTD in the past three months when out. Additionally, 50% ‘haven’t given much thought’ to the current variety of RTDs, ‘despite these promising statistics’, CGA noted.

The survey also found 26% of consumers said they had drunk a cocktail in the past month (down one percentage point) and 9% said they had drunk an RTD product in the past month (up by one percentage point). When asked how satisfied they were for value for money, 79% answered yes to RTDs, and 78% said yes to cocktails.

For quality of serve, 85% were satisfied with their RTD and 87% with their cocktail. In terms of trying a new drink when out, 31% answered yes, and 69% no. For 13%, the new drink tried was an RTD product.

As availability increases, CGA believes RTDs to be an ‘underrepresented growth area’ for drinks brands, suppliers and venue operators.

It added that ‘increasing consumer appetite isn’t yet being met’.

Compelling growth opportunity

Miriam Sternimann, customer success & insight manager – Germany, explained: “There’s a compelling growth opportunity for RTDs in Germany’s on-trade market. For example, younger consumers and urban hubs like Berlin are driving interest.

“The brands and operators who adapt their offerings to meet demand for variety, price, and health-conscious options stand to gain. But they need to address key barriers and harness these insights to fully capitalise on the evolving preferences shaping the RTD category.”

Competitive pricing (31%) was the leading factor determining whether people would entertain RTDs, followed by more variety in flavours (22%), greater convenience (18%) and something different to the usual (18%).

But while these factors can encourage drinkers to opt for RTDs when out, barriers remain such as high sugar content concerns, perception of high prices, too sweet a taste, a dislike for pre-mixed drinks and preferences to choose beer and wine.

According to IWSR’s RTDs Strategic Study 2024, the RTD sector was the only major alcohol category to record volume growth last year.

In The Spirits Business’s World Spirits Report for the category, insiders looked at how RTDs can continue to build on their skyrocketing pandemic success.

The category saw volume rise by 2% in 2024 with the US earmarked as the leading growth driver for future years.

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