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Hard tea to soar 18% in US
By Nicola CarruthersThe spirits-based ready-to-drink (RTD) category grew by 7% in 2023, with hard tea expected to rise by double digits in the US by 2028.

Data from IWSR also found that wine-based RTDs rose by 14% in 2023, while malt-based variants fell by 4%. Covering all bases, RTDs reported volume growth of 2% in 2023 and a value rise of 6% (according to IWSR’s RTDs Strategic Study 2024).
IWSR looked at the performance of the category in 10 key markets: Canada, the US, Mexico, Brazil, South Africa, the UK, Germany, China, Japan and Australia.
Volume and value for the RTD sector are forecast to increase at a compound annual growth rate (CAGR) of 3% between 2023 and 2028, following a rise of 12% (2019-2023).
Between 2019 and 2023, spirits-based RTDs rose by 11%, malt-based RTDs grew by 13% and wine-based products made a 6% gain.
Susie Goldspink, IWSR’s head of RTD insights, said: “Although overall growth rates are tailing off from its peak during the pandemic, there are pockets of strong growth across focus markets.
“Across the 10 key markets, we see a differing picture in terms of RTD categories driving growth. The fastest growth rate of RTD subsegments include hard tea (driven by the US), up by 18% volume CAGR 2023-28, from a relatively lower base.”
Brands such as High Noon, Jack Daniel’s and Lipton have released canned hard tea ranges in recent years. Meanwhile, spirit‐based hard tea brand Surfside hit one million cases in 2023, after only its second year on shelves.
Goldspink also noted the growth of RTD cocktails/long drinks (expected to grow by 4% CAGR 2023-2028) and flavoured alcoholic beverages (up by 3% over the same period).
She added: “The cocktails/long drinks segment is enjoying growth in most markets; the performance of other RTD subcategories is more varied.”
In terms of ready-to-serve cocktails, Goldspink has noticed a move towards premiumisation.
“There has been innovation away from larger-format low-priced bottles and bag-in-box-style products to higher-strength smaller-serve cans and ready-to-pour bottles,” she added.
G&T ‘tails off’
Goldspink also highlighted that “Tequila cocktails with higher ABV and strong flavours like Margarita and Paloma continue to do well, as do lighter Spritz serves” while gin and tonic serves have “tailed off”.
The US and Japan remain the largest RTD markets by volume by some margin, IWSR noted, followed by Australia, Canada and South Africa.
“All 10 markets have had a buoyant five years, with lower growth in the past year as many markets reach maturity and overall TBA [total beverage alcohol] growth slows,” Goldspink said.
Growth in the US will be led by hard tea, FABs and cocktails/long drinks. Meanwhile, FABs will be key to growth in Japan while cocktails/long drinks will a main contributor for Canada.
In the US, IWSR estimates that spirits-based RTDs will grow by a CAGR of 6% from 2023 to 2028.
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