RTDs to soar 400% in US by 2029
Volumes of ready-to-drink (RTD) cocktails/long drinks are forecast to double globally between 2019 and 2029, with the US expected to soar by up to 400%.
IWSR revealed the forecast as part of its Global Trends Report 2025, which identified six trends for the year ahead based on its alcohol data and insights.
The first trend is ‘selective premiumisation’, which notes that while global premiumisation continues, it has become more fragmented due to ‘economic pressures and shifting consumer values’.
Premium-and-above alcohol volumes (excluding national spirits) increased by 3% in 2024, mainly driven by beer, IWSR data showed. In terms of markets, growth occurred in South America, Asia and Africa and the Middle East, while North America and Europe were more restrained.
IWSR believes that selective premiumisation is happening more in cocktails as a result of the ‘growing desire for unique experiences and innovative offerings’. As such, it expects RTD cocktails to boom between 2019 and 2029.
Total beverage alcohol (TBA) volumes fell by 1% globally last year, but spirits outperformed beer and wine. RTDs posted a volume gain of 2% in 2024, with all of the top 20 markets expanding, except for Australia, China, India and the UK.
“As premiumisation becomes increasingly fragmented, brand owners must invest in monitoring consumer sentiment and data to identify emerging growth areas,” said Emily Neill, IWSR’s chief operating officer of research.
“Gaining a clear understanding of the dynamics between categories and the drivers of premiumisation will be key to unlocking new opportunities.”
‘Evolving lifestyles’ was the second trend named by IWSR, which highlighted that economic pressures initially drove consumers to cut down their alcohol intake.
The analyst also cited the popularity of at-home and virtual experiences, which are growing at the expense of traditional socialising occasions with alcohol.
The rise of tourism has also helped alcohol volumes in travel retail to grow by 3% in 2024.
Digital and technology was pinpointed as another trend, with global alcohol e-commerce sales up by 2% in value terms last year, led by spirits, beer and RTDs.
IWSR highlighted Asia Pacific as an area of future growth with the market increasing by 4% in e-commerce value in 2024.
Earlier drinking occasions and no/low on the rise
The fourth trend noted was ‘social drinking’ with consumers moving towards ‘earlier, experience-led occasions’ such as the aperitivo moment.
Affordability is a key factor in this trend with consumers downtrading across the on- and off-trade. But it’s the on-trade which is facing major challenges, including high taxes and lower consumer spend.
Between 2019 and 2024, on-trade TBA volumes contracted in all regions except for Africa and the Middle East (up 4%).
IWSR cites a rise in ‘third spaces’ such as unlicensed home bars, with consumers spending more time drinking at home to cut costs.
‘Health and ethics’ was also called out as a trend as drinkers cut alcohol consumption for an increasing number of reasons. Switching between full-strength and no-alcohol drinks is gaining momentum, IWSR noted.
No-alcohol volumes grew by 9% last year in a sector dominated by beer, but other categories are also increasing.
IWSR said no/low volume growth outperformed full-strength products in all regions last year except Asia Pacific, which was hit by beer’s decline in China.
IWSR also noted a rise in consumer demand for local brands in some markets, particularly India. Meanwhile, sustainable products face a challenge from cost pressures but some drinkers are willing to pay for them, especially Gen Z and Millennials.
The final trend from IWSR is ‘external pressures’, with geopolitical tensions, supply chain issues, tighter government regulations and tariffs named as examples.
“With uncertainty likely to persist, brand owners should adopt contingency strategies, review supply chains and explore emerging markets for growth opportunities,” Neill added.
“Monitoring public health messaging and legislative changes will continue to be essential for global operators navigating geopolitical and regulatory challenges.”
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