Ready-To-Drink Products Will Command 8% of Total Beverage Alcohol by 2025 LONDON – The market for ready-to-drink (RTD) alcohol products continues to show traction and demand from consumers, according to a new study from IWSR Drinks Market Analysis.

RTD volumes have been growing faster than any other major drinks category since 2018, and are expected to significantly outperform the wider beverage alcohol market over the next five years, increasing their market share to 8% by 2025 (from about 4% share in 2020) in top RTD markets.

The new IWSR RTD Strategic Study examines the RTD category across 10 focus markets (Australia, Brazil, Canada, China, Germany, Japan, Mexico, South Africa, UK, and US) which represent more than 85% of all RTD volumes worldwide. IWSR forecasts an approximate +15% compound annual growth rate from 2020 to 2025 for RTDs in these markets, compared to about +1% CAGR for total beverage alcohol during that same period. “RTDs are still growing at higher rates than spirits, wine, and beer, signaling a major shift in consumer interest in this category across all demographics,” says Brandy Rand, COO of the Americas at IWSR Drinks Market Analysis. “But it’s important to note that RTDs aren’t only stealing share from beer, they’re also attracting spirits consumers in markets such as Australia and the UK, and cider drinkers in South Africa. We’re also seeing a significant premiumisation trend in RTDs as more and more new brands enter the space.” Among the report’s findings: Hard Seltzers Forecasted to Remain the Primary Driver of RTD Volumes in Coming Years IWSR projects that hard seltzers will account for half of all global RTD volumes by 2025 (up from 30% share in 2020), driven by consumer demand for flavourful drinks with “better-for-you” attributes. Though much of this growth will continue to come from the US, hard seltzers are forecast to also grow rapidly in other markets such as Canada (+50% CAGR 2020-2025), the UK (+90%), China (+84%), and Australia (+24%).