Close Menu

Ready-to-drink category will soon overtake wine in the US

Forecasters predict ready-to-drink products will soon outrun wine in the United States, reveals new IWSR Drinks Market Analysis report

Ready to drink category

We’ve all been going bonkers for ready-to-drink products (RTDs), and now independent research from IWSR confirms the hype. Not only did RTDs post extraordinary double-digit growth in 2020, up by +26.4%, it was the only alcohol category to grow at all during the Covid crisis, resonating with consumers across all demographics.

In fact, the category is so red-hot right now that RTD volume is projected to increase by almost +27% this year, driven largely by stupendous growth in the US, which holds nearly half (44%) of global RTD volume.

Here’s where it gets interesting… Stateside, where hard seltzers have exploded by +130%, RTD volume is already larger than the nation’s total spirits category. Yep, total spirits category.

A new report by IWSR Drinks Market Analysis suggests the US will soon be consuming more RTDs than wine. Should US winemakers be worried?

“Given the growth of this trend and the need to stay relevant, innovation within the wine industry is starting to quicken pace in regard to non-traditional wine options,” said Brandy Rand, COO of the Americas at IWSR Drinks Market Analysis. “Several winemakers have already invested in the ready-to-drink space. Within the last several months alone, several major brands have introduced wine spritzers.”

Watch below to learn how to taste any wine without opening the bottle:

Winemakers moving into the RTD sphere are not always doing so with wine-based products. Gallo for example owns the wildly popular High Noon vodka and soda hard seltzer brand.

“While there are some positive growth trends within the traditional wine segment, for many owners, having brand extensions that meet these changing consumer needs is a smart marketing strategy,” said Rand.

Japan is the second biggest market for RTDs with a 22% share, followed by Australia, Canada, and China.

It looks like you're in Asia, would you like to be redirected to the Drinks Business Asia edition?

Yes, take me to the Asia edition No