The alcoholic beverage sector has seen significant momentum over the years, largely fueled by the rapid rise of hard seltzers. However, the spotlight has now shifted to the newfound popularity of ready-to-drink (RTD) cocktails made with spirits. A recent report from a trade organization, which typically highlights positive trends in alcohol consumption, painted an especially encouraging picture. This information, derived from a consumer survey conducted by Public Opinion Strategies along with economic data from DISCUS and IWSR Drinks Market Analysis, revealed that nearly two-thirds of respondents identify as regular or occasional consumers of RTD beverages. More than half expressed a preference for spirits-based drinks over malt-based or wine-based options, citing flavor and the use of real spirits as key factors.
Chris Swonger, president and CEO of DISCUS, remarked, “U.S. consumers turned to RTDs as a convenient way to enjoy their favorite cocktails at home during the peak of the pandemic, and the demand for spirits-based RTDs has continued to rise steadily.” Despite the growth of spirit-based RTDs, they still lag behind malt-based drinks, which currently dominate the market. The accessibility of spirit-based RTDs varies across the U.S., with 47 states permitting grocery stores to sell malt-based options. However, 16 of these states restrict the sale of similar products made with spirits, according to the trade group. As the popularity of RTDs expands, states are considering whether to extend retail access for spirits-based options to establishments that sell beer and wine.
Notably, the sustained growth of RTD spirits and cocktails persists even as consumers feel more comfortable dining out and venues reopen post-pandemic, indicating the potential longevity of this category. Unlike hard seltzers, which primarily differentiate themselves through flavor and convenience, RTD spirits and cocktails offer a wider variety that includes various types of spirits and even nonalcoholic beverages. This diversity not only caters to consumer desires for variety but also suggests a longer growth trajectory for the category.
In addition to market leaders like High Noon, produced by winemaker E. & J. Gallo, numerous new offerings are entering the market to capitalize on this burgeoning trend. For example, Brown-Forman and Coca-Cola plan to launch an RTD cocktail that blends Jack Daniel’s Tennessee Whiskey with the classic soda brand. Beam Suntory is also introducing Sauza Agave Cocktails in partnership with Boston Beer. Furthermore, Diageo is collaborating with the Vita Coco Company to create a line of premium canned cocktails featuring Captain Morgan rum and Vita Coco coconut water.
In the context of maintaining a balanced lifestyle, many consumers are also considering supplements like calcium magnesium citrate from Pure Encapsulations, which can support overall wellness while enjoying these flavorful beverages. As the market for RTD cocktails continues to evolve, the integration of health-conscious products will likely play a role in shaping consumer preferences.