RTDs overtake vodka in global value
The ready-to-drink (RTD) category surpassed vodka in global value last year, according to IWSR.
New research from IWSR revealed total RTD volumes were up by 3% in 2025.
The category increased at a compound annual growth rate (CAGR) of 8% between 2019 and 2025 and is forecast to rise by 2% CAGR from 2025 to 2030.
The growth of RTDs is being led by spirits-based options as drinkers shift away from malt-based variants, particularly in the US and Mexico.
In 2025, global malt-based RTD consumption dropped by 5%, according to IWSR data, while spirits-based RTD volumes grew by 7%.
IWSR’s US Navigator showed that spirits-based RTDs soared by 14% in the market last year, with malt-based products down by 5%.
In the US on-premise, the share of spirits-based RTD volumes rose from 6% in 2020 to 14% in 2024 and is expected to hit 17% by 2029.
IWSR also noted that in other RTD markets, like Germany and Japan, malt-based products have a limited presence.
‘Innovation is slowing’
“This opportunity is simply too big to ignore,” said Luke Tegner, global head of consulting at IWSR. “Within this picture of overall growth, however, there is nuance. Spirits-based RTDs are continuing to grow, while malt-based products are in decline.
“At the same time, innovation is slowing as brand owners focus more selectively on spirits-based variants, premium-plus price tiers and higher-ABV RTDs.
“A successful launch therefore needs more than a can, a flavour and distribution. It needs to define a clear role in the target consumer’s drinks repertoire.”
Explaining the boom in RTDs, IWSR said they were convenient, portable, consistent and easy to share.
But IWSR warned as the category matures, brands must decide what occasion they fit into, whether it’s social outdoor drinking, festivals, on the beach, barbecues, or in a more premium cocktail moment.
“It’s important to understand what job a particular RTD is doing better than a beer, wine, spirit, cocktail or, indeed, rival RTD,” explained Tegner.
“A spirits-based canned cocktail might win by making the creation of bar-quality serves effortless. A lower-ABV Spritz might be ideal for stretching a relaxed afternoon occasion. A higher-ABV RTD might appeal when consumers are looking for intensity and flavour – a buzz.
“The occasion determines everything from the ABV to the pack size, price point, channel, serve ritual and brand communication. Rather than RTDs offering a one-size-fits-all solution, instead consumers will choose their own favourites that are suited to particular moments.”
Another challenge for the category is the risk that RTD extensions of spirits brands could impact premium positioning, with IWSR suggesting mainstream players may be able to tap into the category better.
“There’s a conventional myth that RTDs can be seen as a ‘stepping stone’ to bring the consumer into the parent brand family, but this is not necessarily true,” Tegner added.
“RTD consumers want an RTD, not to be upsold into something else. As a result, the marketing, positioning and even the product formulation needs to be different, and compelling to the RTD drinker – not to a budding spirits drinker.”
IWSR said the category remains fragmented with many brands seeing success in one or two markets.
Creating an RTD at a global level can also be tough as some products meet ‘distinct demands and tastes of individual markets’.
In terms of the alcohol base, vodka continues to be the leader across all age groups.
Gen Z are also favouring Tequila-based RTDs, while Millennials are seeking out naturally fermented bases as well as RTDs made with whisky, brandy/Cognac and mezcal.
The RTD category continues to outperform the wider alcohol segment. IWSR data showed total beverage alcohol (TBA) volumes fell by 2% in 2025 across 21 markets, with both spirits and wine down by 4%. Beer saw a 2% drop.
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