Value–added water also saw double–digit growth rates in both volume and dollars. Stocking other brands can differentiate retailers amongst their competition and attract new buyers.”, Overall, purchasers of RTD cocktails on Drizly skew female, comprising of 57.6 percent of buyers compared to 42.4 percent male. “The RTD category has grown 28% in the past 28 weeks,” says Mike Morgan, president of Prestige Beverage Group, which distributes both the Joia Spirit and Kinky Cocktails lines of RTD mixed drinks. However, the onset of Covid-19 set the RTD cocktail category on fire. Within hard seltzers, the top flavour is the ‘assorted’ option, showing that consumers are looking for more choice, Nielsen claimed. Consumers are not only taking a bigger interest in the numerous benefits of canned packaging, but also with the simplification of the canned cocktail experience itself. Each … The ready-to-drink category meets consumer demand for convenience. Premiumisation​ is the first factor that’s driving RTD growth. RTD Mixed Spirit Production in the US industry outlook (2020-2025) poll Average industry growth 2020-2025: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. “These offerings are lower calorie and lower sugar alternatives to other RTDs and often compete with hard seltzer,” says Paquette. In fact, the ready-to-drink space is boosting sales across all alcohol beverage categories, with the emerging malt-based cocktail segment leading the pack in growth. In fact, the ready-to-drink space is boosting sales across all alcohol beverage categories, with the emerging malt-based cocktail segment leading the pack in growth. Malt-based cocktail sales, for example, are up 574% from a year ago. There may even be the potential for RTDs to capitalize on — and compete with — the success of another booming category: Hard seltzer. On Drizly, the RTD segment has grown 416 percent in share of sales year-over-year. Get sales-driving data and insights in your inbox every week. Driving the RTD growth is the rise in popularity of canned cocktails, which grew in both value and volume last year, according to Nielsen. var now = Date.now() //$('#email').val(count); A ready to drink alcoholic beverage is a pre-mixed/ prepared and packed form of cocktail for … The increased variety of RTD options on the market has contributed to the category’s growth — which, in turn, has resulted in even more brands releasing RTD products. At least 40 new RTD products have launched in the last three years. According to the IWSR, the RTD category is projected to grow at a 11.5 percent compound annual growth rate between 2019 and 2024. You may unsubscribe from these communications at any time. “They are great for people who are willing to socialize [but want to] minimize contact by doing so outdoors,” says Jill Burns, a co-founder of Austin Cocktails. Comprising a variety of premixed boozy beverages, the RTD category, largely dormant since the 1980s, has sparked an arms race as beverage corporations rush to acquire hard seltzers or launch canned or bottled cocktails. In 2020, High Noon accounted for 55 percent of RTD share, compared to just 13 percent in 2019. Pre-Mixed/RTD Alcoholic Drinks Market Introduction: Alcohols consumed in dilutions, with a mixture of fruit flavors and other drinks have been popular since the inception of word cocktail in the early 1800’s. Still, despite the rapid growth, the category’s share of sales on Drizly remains relatively small, prompting the question: How significant will RTD cocktails be in the months and years to come? Gemma Collins launches sparkly gin liqueur. They combine Zing Zang’s cocktail mixes with vodka, silver tequila, and Kentucky bourbon. “We really think this is going to explode. The products experienced a 7% aggregate compound annual growth rate over a five-year period that encompassed the … RTD cocktails are also seen as safer alternatives amidst pandemic health concerns. The ready-to-drink (RTD) spirit-based cocktail category grew 40.7% over the last year, while malt-based RTD cocktails grew 574%, according to new data. RTD coffee outperformed all other segments with a 12.3 percent increase in volume and a 14.4 percent increase in retail dollars. $('#force').val(count) jQuery(document).ready(function($) { Before Covid hit, year-over-year off-premise growth was just 21.5 percent for the 52-week period ending February 29. //alert('pressed! '); US off-trade spirits sales grew by 26.3% in September and October, bolstered by a triple-digit increase for ready-to-drink (RTD) cocktails, according to new Nielsen data. As an industry category, RTD cocktails have grown rapidly, with growth expected to continue over the coming years. Even as states have begun to reopen restaurants and bars, RTD cocktails lead growth across all spirits categories, with Nielsen reporting 91.8 percent growth from May 31 to June 27. But the ready-to-drink realm isn’t just for cocktails. Beverage Industry Content on 'Ready-to-Drink (RTD) Cocktails' Beverage Industry’s November issue features our annual Craft Beer Report where we provide insight about how the craft beer segment is recovering after the onset of the pandemic halted many on-premise sales.Also in this issue we analyze the factions … “We anticipate that as the RTD category continues to grow, new entrants will look to get in on the category’s success,” says Paquette. You may unsubscribe from these communications at any time. 03606414 | Wigglesworth House, Fourth Floor, 69 Southwark Bridge Road, London, SE1 9HH, UK. “The RTD category has grown from less expensive offerings made with artificial ingredients and neon colors to cocktails made with natural flavors and premium spirits,” says Kelly Gasink, the other co-founder of Austin Cocktails. How relevant is vodka innovation in a pandemic world? RTD alcoholic beverages is a drinks category that saw a boost and continual growth throughout the weeks of lockdown. RTD cocktails taps into consumer demand for convenience and provides drinkers “with something they’ve historically had to be at a bar or restaurant to enjoy”. “The gender demographic skew of the RTD category is similar to that of the hard seltzer category,” says Paquette. While home cocktail culture has resulted in increased sales for spirits, liqueurs, and other cocktail ingredients, RTDs offer the added benefits of convenience and portability. You can see how today’s RTD cocktails might differ from those of the past by the artisanal emphasis of the recent RTD cocktail startups. The growing preference for RTD cocktails by millennial in developed countries and the easy availability of these products in the market is driving the growth of the RTD alcoholic beverages market. Drizly uses the information you provide to us to contact you about our relevant content, products, and services. Canned formats dominate Drizly’s top-selling RTD SKUs and brands, underscoring how the category has largely shifted from bottles to cans to meet consumer preferences. Driving the RTD growth is the rise in popularity of canned cocktails, which grew in both value and volume last year, according to Nielsen. Zing Zang RTD cocktails are initially available in three varieties: Bloody Mary, Margarita, and Bourbon Whiskey Sour. In our imaginations, cocktails do not come preassembled and making them portable requires some ingenuity (sippy cup cosmo, anybody?). Like other canned beverages, the single-serve format reduces potential contact points (such as shared glassware or bottles) and offers glass-free portability for outdoor gatherings. Zing Zang has announced the launch of a new line of spirits-based, ready-to-drink (RTD) canned cocktails. This can be demonstrated in a number of ways including new entrepreneurial companies introducing their brands to the market, existing companies acquiring other brand(s), and existing brands in single alcohol segments extending their name recognition into newer segments to try and become a ‘power’ brand. While there has been a return to classic cocktails in RTD offerings, creative flavors are also important; 66% of respondents to a recent RNDC survey said that outside-the-box flavors were a reason for choosing RTD cocktails. “Canned cocktails are a convenient and quality solution for cocktail lovers,” says Earl Kight, the co-founder and chief sales and marketing officer for Cutwater Spirits. They combine Zing Zang’s cocktail mixes with vodka, silver tequila, and Kentucky bourbon. “As RTD brands position themselves as direct competitors to hard seltzer, the category has the opportunity to gain significant share in coming years,” says Paquette.Though the first hard seltzers were only released a few years ago, already the category accounts for 4 percent share of all sales on Drizly. Annual sales in this segment are up 574%, and malt-based cocktails now account for $4.7 million in annual sales. BACARDI isn’t the only brand of RTD cocktails that’s experienced such explosive growth. Driving the category, refrigerated ready-to-drink (RTD) teas generated dollar sales of more than $1.61 billion in U.S. multi-outlets and convenience stores for … While this resulted in a purchasing uptick in the ingredients to recreate their favorite restaurant cocktails, it was also a boon for canned, single-serve RTDs. “With recent and continued product innovation in the RTD space,” adds Paquette, “there is certainly potential for it to become an even stronger category in coming years.”. We're committed to your privacy. The U.S. trails some other countries when it comes to the size of the RTD cocktails market, which possibly hints at how much potential for growth there is. Zing Zang has announced the launch of a new line of spirits-based, ready-to-drink (RTD) canned cocktails. Indeed, Mintel predicted a 9% rise in RTD cocktail sales by volume over a five-year period … The packaging of RTDs has “broadened the scope for how alcoholic beverages have traditionally been contained” with the can format “performing particularly well”. Statistics show that single-serve, ready-to-drink (RTD) beverages have a $23 billion market with energy drinks and shots, sports drinks and nutrient-enhanced waters worth $15 billion. However, we’re seeing an emergence of pre-mixed cans featuring both premium quality spirits and mixers. Annual sales in this segment are up 574%, and malt-based cocktails now account for $4.7 million in annual sales. If you continue to use this site, you consent to our use of cookies. And it’s booming as a result. The convenience and portability of RTDs, which have become more varied in recent years, offer consumers safe access to high-quality cocktails amidst bar and restaurant restrictions. Popular RTD occasions include outdoor picnics (32%), the beach/pool (28%) and while travelling or on holiday (23%). “This strategy has allowed High Noon to capture share of hard seltzer buyers and carry over into the RTD category,” says Liz Paquette, Drizly’s head of consumer insights. “As Covid-related on-premise restrictions persist through the second half of the year,” Paquette says, “we expect that will continue to drive growth in the RTD category.”, At Molly’s Spirits, Cook expects that the category will continue to boom throughout the holiday season, particularly because of new socialization habits. According to Nielsen, for the 23-week, Covid-affected period ending August 8, year-over-year growth in off-premise dollar sales for RTD cocktails was 86.8 percent. Data from IWSR shows that RTD sales volume increased 43.2 percent in 2019, nearly tripling 2018’s 16.9 percent growth. Despite representing less than one percent of sales share on Drizly, the RTD category is becoming more significant by the month. The ready-to-drink (RTD) spirit-based cocktail category grew 40.7% over the last year, while malt-based RTD cocktails grew 574%, according to new data. The growing preference for RTD cocktails by millennial in developed countries and the easy availability of these products in the market is driving the growth of the RTD alcoholic beverages market. Drizly’s Top-Selling RTD SKUs in 2020. The figures from Nielsen Scantrack measured off-premise outlets for the 52 weeks ended 20 April 2019. “In early 2019 we saw popularity of cans early,” says Burns of Austin Cocktails, “and knew we had to expand our offerings to single-serve cans.” Perhaps buoyed by the rise of hard seltzers, canned cocktails are now essential products for retailers to carry. Pre-mixed/RTD alcoholic drinks market has diverse growth factors, however is still curtailed by various challenges as well. This report covers on- and off-premise sales of RTD premade alcoholic beverages, including: Flavored malt beverages – includes prepared malt beverages such as Bud Light Lime-a-Rita; Prepared spirits-based cocktails – drinks such as Bacardi Classic Cocktails Mojito that are made with distilled spirits In fact, Paquette recommends that retailers stock vodka-based RTDs to supplement vodka inventory, given the category’s success. From a party favourite to a premium product Premiumisation is the first factor that’s driving RTD growth. When it comes to generations, Nielsen said that young adults are moving towards RTD cocktails at social gathering and outdoor activities. These new products from established liquor brands, along with increased distribution of current RTD offerings, will likely determine the future growth and success of the category. There are few winners in a Covid-19-era beverage purchasing landscape, but ready-to-drink (RTD) cocktails are certainly coming out on top. How is the RTD Market Evolving? Though demand was already growing for pre-mixed, canned, or bottled cocktails, the category exploded after the U.S. began to feel the pandemic’s effect, seeing 90.4 percent year-over-year growth … “We really think this is going to explode. But like craft beer and kombucha, this trend has been brewing for some time. When restaurants and bars shuttered in March, consumers brought on-premise cocktail culture home. “In the past, all that was readily available was usually-too-sugary margarita mix. var count = parseInt($('#force').val()) + 1; The most common are alcopop, cocktail pre-mixes, and bottled cocktails. Zing Zang RTD cocktails are initially available in three varieties: Bloody Mary, Margarita, and Bourbon Whiskey Sour. While Scotch category growth lags behind the overall whiskey boom, premiumization and product innovation makes it an important investment for retailers, Chardonnay sales have slowed but the varietal wine is still a market mover — here’s what to expect going forward. These recreate authentic tasting serves of popular drink… So even as bars, tasting rooms, and restaurants begin to re-bound from several months of closures, RTD cocktails have continued to lead growth across all spirits categories, with Nielsen reporting a 91.8% increase from May 31 to June 27. “We recommend retailers work closely with their wholesale partners to plan their RTD inventory,” says Paquette. The result has been significant growth. For some time now, the analytic mantra ‘drinking less, but drinking better’ has been the chant du jour for both industry experts and companies. According to Neilsen data, the sales of beers, RTDs and ciders haven gone up by 52% in the USA, with a lot of this growth being driven by the hard seltzers. Ready-to-drink (RTD) cocktails have experienced new growth in recent years, but the impact of Covid-19 set the category on a skyrocketing trajectory. Sales of RTD cocktails in the U.K., for instance, were about 2.6 times greater than in the U.S. in 2016, according to Euromonitor. Premium is not often a characteristic associated with the category, which is more typically known for its affordability. We think we’re right on the cusp of it.” Behind the RTD Boom: Ready-to-Drink Cocktails See Sizeable Growth As Drinking Habits Change. Despite rapid growth, however, RTD cocktails in 2020 still represent a small share of sales on Drizly: .62 percent share of sales overall, and 1.79 percent share of liquor category sales. It seems that the challenge for retailers is not to decide which RTD cocktails to offer, but to actually keep inventory in stock, if summer sales are any indication. Nielsen data indicates a similar trend in measured off-premise channels: Sales were up 20.7 percent year-over-year in 2019, up significantly over the prior year’s 7.1 percent year-over-year growth. Red blends once soared towards the top of wine sales, but now growth is flat. According to Nielsen, year-over-year off-premise dollar sales growth was 57 percent for the 52-week period ending August 8. As indicated by the success of High Noon, consumers are most often reaching for simple, refreshing, low-ABV cocktails like vodka-sodas or gin-tonics. Spirit- and wine-based RTD cocktails generated larger annual sales at US$62m and US$83m respectively. The brand’s success has been driven by its positioning within the hard seltzer category; though High Noon is vodka-based, therefore categorizing it as a RTD cocktail, it is marketed as a vodka-based hard seltzer. “No ingredients, no prep or clean up. Malt-based cocktail sales, for example, are up 574% from a year ago. According to Nielsen data, the RTD spirit-based cocktail category grew 40.7% over the last year. 2020 may have accelerated the RTD cocktail category’s growth, but producers have been laying a foundation for this success for several years. }); Terms & conditions | Privacy Policy | Cookie Policy | Please drink responsibly | Log in May 30, 2019 | News |. The category was already poised for success in 2020 after experiencing marked growth in 2019. These newer alcohol segments are “providing expansion opportunities” across the alcohol category, Nielsen claimed. Retail dollars for RTD tea grew 3.9 percent. Malt-based cocktails led the growth of the category, with annual sales now accounting for US$4.7 million. “We see canned cocktails as an easy way for people to bring their own boozy treat to a holiday party to enjoy,” she says, “while maintaining a safe distance and not cross-contaminating in a punch bowl.”, However, don’t expect consumers to toss aside RTDs once the pandemic has eased.

rtd cocktail growth

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rtd cocktail growth 2020