The global alcoholic beverage market has undergone a dramatic transformation over the past five years, with ready-to-drink (RTD) beverages capturing consumer attention and steadily eroding the market share of wine—particularly still wine.
According to the latest data from IWSR, this shift is reshaping drinking habits in key markets and creating new challenges for traditional wine producers.
Global Market Shifts: Wine Under Pressure
Since 2019, still wine’s share of total global serves has slipped from 11% to 10%, with projections pointing to a further decline to 9% by 2029. Sparkling wine has shown more resilience, thanks largely to Prosecco’s popularity, though it remains an occasion-driven category rather than an everyday drink.
In contrast, RTDs doubled their share of global serves between 2019 and 2024 (from 1% to 2%). While growth is expected to level off, their cultural impact and consumer resonance are proving long-lasting.
Richard Halstead, COO Consumer Insights at IWSR, explains:
“RTDs have surged in popularity due to a combination of convenience, flavour innovation, and messaging that aligns with the health and moderation trend. Their cultural relevance—backed by influencers and amplified by social media—has helped them connect with younger consumers, particularly Gen Z. By comparison, wine often struggles to project accessibility and modernity.”
Market-by-Market Trends
- United States: RTDs grew at a +14% CAGR between 2019 and 2024, while still wine volumes fell by -4%. By 2024, RTDs had overtaken wine volumes entirely, with further divergence expected. Sparkling wine, despite short-term growth, is forecast to decline -3% CAGR to 2029.
- Japan: RTDs expanded by +5% CAGR between 2019 and 2024, while still wine fell -3% and sparkling wine -1%. RTDs now outsell wine categories combined.
- Canada: RTDs are forecast to overtake still wine by 2027, and still plus sparkling wine combined by 2028. Since 2019, RTDs have nearly doubled in both volume and value.
- Australia: RTDs grew +4% CAGR between 2019 and 2024, despite a one-year dip in 2024. Still wine volumes declined -3% CAGR over the same period, with further declines forecast.
- Germany: Though RTDs remain smaller than wine, they grew at +11% CAGR (2019–2024). Still wine consumption continues to fall, with Gen Z increasingly choosing RTDs (23% of Gen Z drinkers vs. 9% for wine).
- Italy: A rare exception, where RTD volumes declined slightly (-1% CAGR since 2019). Still wine also shrank, but sparkling wine bucked the trend, expanding at +1% CAGR and forecast to accelerate to +2% by 2029.
Why Consumers Prefer RTDs
The appeal of RTDs lies in several competitive advantages over wine:
- Convenience: Cans and bottles require no corkscrew, glassware, or formal setting.
- Innovation: Flavours and formats adapt quickly to consumer trends.
- Health Positioning: Many RTDs are marketed as low-calorie, low-alcohol, or gluten-free.
- Modern Marketing: Strong social media presence, celebrity partnerships, and influencer-driven branding.
- Packaging: Sleek, colourful designs catch consumer attention both online and on shelves.
Meanwhile, wine continues to struggle with perceptions of formality, complexity, and higher calorie content. Traditional consumption occasions—such as formal dining—are in decline, weakening wine’s cultural relevance.
Blurring Boundaries: Wine-Inspired RTDs
The lines between wine and RTDs are increasingly blurred. Wine spritzers, canned cocktails, and flavoured sparkling wines are gaining traction. In South Africa, Mexico, and Germany, wine spritzers are thriving, particularly among Millennials. In Canada, flavoured sparkling wines expanded at a +65% CAGR (2019–2024), demonstrating how wine-based products can adapt to RTD-driven demand.
The Future of Wine in an RTD World
The rise of RTDs highlights an urgent need for wine producers to reimagine their category positioning. Key opportunities include:
- Premium canned wines: Offering both convenience and quality.
- Flavoured wine beverages: Meeting consumer curiosity with innovative taste profiles.
- Simplified branding and clearer labelling: To appeal to younger and health-conscious drinkers.
- Expanded consumption occasions: Targeting informal, social, and on-the-go moments where wine traditionally has little presence.
As Halstead summarizes:
“The challenge for wine is to modernize without losing authenticity. By innovating in packaging, flavour, and communication, wine can begin to reclaim relevance among younger generations who increasingly reach for RTDs instead.”
Source: IWSR