Ready-to-drink (RTD) beverages continue to be one of the most dynamic segments of the global beverage alcohol industry, sustaining their growth trajectory despite market maturity and broader consumption shifts.
According to IWSR’s RTDs Strategic Study 2025, RTD volumes across ten leading markets — Australia, Brazil, Canada, China, Germany, Japan, Mexico, South Africa, the UK, and the US — expanded by +2% in 2024, with category value rising +4% year-on-year. Collectively, these markets represent 82% of total global RTD volumes, underscoring the segment’s strong international footprint.
RTDs now account for 3.5% of total beverage alcohol (TBA) servings, compared with 1.1% in 2014, highlighting a consistent upward trend over the past decade. While growth has slowed compared with the explosive post-pandemic years, RTDs continue to outperform total beverage alcohol (TBA) growth in eight of the ten key markets, with only China (-14%) and Australia (-6%) showing contraction due to structural challenges.
Emerging Markets Drive Expansion
Growth hotspots include South Africa and Brazil, both registering +12% volume increases in 2024. South Africa rose to become the third-largest RTD market, while Brazil’s double-digit growth reflects expanding consumer demand and strong on-trade performance. In contrast, the US saw modest growth of +1%, indicating market maturity yet continued resilience.
According to Susie Goldspink, Head of RTD Insights at IWSR, RTDs remain a “beacon of hope in an increasingly competitive TBA market.” She notes that the greatest opportunities lie in established markets where RTDs already exceed a 5% TBA share, including the US, Canada, and Japan.
IWSR forecasts that RTDs’ share of global TBA servings will reach 4% by 2029, up from 2% in 2019. The category already commands significant market share in Japan (13%), Australia (9%), Canada (8%), and the US (8%). Between 2024 and 2029, volume growth is projected at +1% in the US, +3% in Japan, +3% in South Africa, and +7% in Brazil.
Consumption Frequency Outpaces Recruitment
While new consumer recruitment has slowed — with only 5% of RTD drinkers joining the category in 2024 — overall consumption is increasing due to higher drinking frequency among existing consumers, particularly younger demographics.
“Gen Z consumers are now driving higher consumption frequency across RTD categories,” says Goldspink. “This contradicts previous assumptions of moderation trends among younger generations.” Among RTD drinkers, 54% of Gen Zs and 56% of Millennials consume RTDs weekly or more often, compared to 46% of Gen X and 38% of Boomers, highlighting a clear generational divide.
Flavour Innovation and Product Diversity
Flavour remains the dominant driver in RTD purchase decisions across all age groups, surpassing price as a key factor for younger consumers. Citrus flavours — particularly lemon — remain popular, though new product development increasingly leans toward tropical and strawberry profiles, reflecting evolving preferences.
Alcohol content is also gaining importance, with buyers seeking both low-ABV and high-ABV options suited to different consumption occasions. This diversification suggests opportunities for producers to innovate beyond traditional mid-strength offerings.
The RTD–Wine Dynamic
IWSR’s findings indicate that while beer’s loss of market share to RTDs has slowed since 2019, wine continues to lose servings at a faster rate. “Wine is being substituted more often than beer across most markets,” explains Goldspink. However, she notes that the growing overlap between canned wines and RTDs creates an opportunity for the wine sector. “Canned wines share RTDs’ convenience and design appeal, allowing wineries to re-engage younger consumers.”
Channel Diversification and Brand Risks
The RTD category is also broadening its sales channels, with the on-trade share of volumes in the ten leading markets rising from 8% in 2021 to 12% in 2024. Countries like Brazil (37%) and South Africa (30%) exhibit particularly strong on-premise consumption. Additionally, e-commerce and on-the-go formats remain vital among younger buyers who favour convenience and immediacy.
However, the proliferation of RTD brand extensions from established spirits brands presents both opportunities and challenges. IWSR research shows that consumers perceive these products as “fun and approachable,” boosting trial intent — yet they risk diluting the premium image of the parent brand. “It may be wiser for producers to use mainstream, rather than premium, spirits brands for RTD extensions,” advises Goldspink.
Outlook: Sustained but Selective Growth
Despite slowing growth, RTDs remain a key growth engine within the beverage alcohol industry. Future success will depend on strategic innovation, flavour diversification, and market-specific positioning, especially in regions with high TBA penetration. As global consumption patterns evolve, the RTD category’s flexibility, convenience, and broad appeal ensure it will remain at the forefront of beverage innovation.
Source: IWSR