5 Trends for RTD Beverages in 2023 and Beyond.
Ready-to-drink alcoholic beverages, or RTDs, have long been popular with consumers. But recently, the market for these drinks has exploded. In just a few years, the number of available products has skyrocketed. So what does the future hold for RTDs? Here’s an overview of what to expect from RTD alcoholic beverages in 2023 and beyond.
1. Continued RTD Market Growth for Craft Brands
The RTD beverages market was valued at USD 89 billion in 2021 and is expected to grow by 24% in volume over the next 5 years. This increase is predicted to be driven by spirit-based cocktails.
Premium-priced RTDs have grown faster than any other segment since the pandemic, with premium products launching at higher price points. While more than 50% of consumers are driven to purchase RTDs by well-known brands, RTDs produced by local craft breweries and distilleries also rate extremely high. Celebrity-backed brands? They rate the lowest.
2. Increase in Spirits-Based RTDs over Seltzers
While the RTD market will continue to grow, hard seltzer share is expected to temper. Spirits-based RTDs or cocktail drinks are expected to overtake hard seltzers by 2025 and command about 26% of the total RTD category by 2026. Hard seltzers are forecasted to only capture 20% of the market during the same period.
“Consumers in the US have grown accustomed to the convenience and variety offered by RTDs, which has increasingly led to people trading up to spirit-based cocktails. This reflects the overall spirits premiumization trend in the US and the popularity of bar-made cocktails,” says Brandy Rand, chief strategy officer at IWSR Drinks Market Analysis. “As a result, hard seltzer volume is now projected to decrease after hitting all-time highs, which will lead to more moderate growth levels across the total RTD category.”
3. New Flavors and Formulations
One of the most exciting aspects of the RTD market is its ever-evolving nature. Drink producers are constantly innovating and introducing new flavors, formulations, and styles to meet consumer demand. As more people become interested in new types of alcoholic beverages beyond the usual hard seltzers, manufacturers will be responding with even more original offerings.
4. Increased Variety
RTDs come in a variety of formats—cans, bottles, cartons—and offer numerous levels of alcohol content. This makes them appealing to a wide range of drinkers, from casual sippers to experienced boozers. In addition to traditional beer and wine varieties, there are also hard seltzers (flavored malt beverages), craft spirits (distilled spirits with unique flavor profiles), and cocktails (pre-mixed drinks). The sheer variety of options means that there’s something for everyone when it comes to RTDs.
5. Environmental Benefits
With their portable packaging and low carbon footprints compared to other forms of alcohol consumption such as draft beer or mixed drinks at a bar or restaurant, RTDs can help reduce your environmental impact while still enjoying your favorite drinks. In addition, many craft spirit producers are using sustainable practices such as sourcing ingredients locally or using renewable energy sources for distillation processes.
The future looks bright for RTD alcoholic beverages! With increased variety in both flavors and formats, plus environmental benefits that make them appealing to eco-conscious consumers, it’s no wonder why these drinks have become so popular over the past few years. Whether you’re sipping on a hard seltzer or enjoying a cocktail on the go, you can be sure that you’re getting quality refreshment that fits your lifestyle! So raise your glass—2023 is shaping up to be an exciting year for ready-to-drink beverages.
If you’re ready to enter the RTD market and create something exciting or can your existing formula, we’ve got you covered. Check out our services to learn how we can help get your RTD beverage to market fast!