Dynamic RTDs ‘a beacon of hope’ for beverage alcohol

RTDs continue to be the growth category to watch in beverage alcohol, with consumers drinking more frequently and widening their purchase channels and occasions – which are set to be key drivers of future category expansion.

RTD volumes in 10 of the world’s leading markets (Australia, Brazil, Canada, China, Germany, Japan, Mexico, South Africa, UK, US) – accounting for 82% of global volumes – grew by +2% in 2024, according to IWSR’s RTDs Strategic Study 2025, with value rising by +4% over the same timescale. RTDs now have a 3.5% share of TBA servings in these markets, up from 1.1% in 2014.

Category growth has slowed, but RTDs continue to outpace total beverage alcohol (TBA) growth in eight out of the 10 markets, with only China and Australia – both currently suffering structural decline across TBA – lagging behind.

Growth hotspots include South Africa, where RTD volumes expanded by +12% in 2024, elevating it from fifth to third rank among the top 10 markets; and Brazil, also with a +12% gain last year. While volumes in China (-14%) and Australia (-6%) declined in 2024, the other six markets all grew, but at a slower rate than their 2019-24 CAGR volume increases. In the US, volumes were up by +1% last year.

“In an increasingly competitive TBA market, RTDs are the beacon of hope,” says Susie Goldspink, Head of RTD Insights. “The biggest growth opportunities lie in established markets where RTDs already hold a TBA volume share of more than 5%. Despite a recent slowing of growth, RTDs will continue to gain share of TBA, particularly in the strongholds of the US and Canada, which are more diverse RTD markets, and in Japan, although it offers less product diversity.”

Across the 10 key markets, IWSR forecasts predict that RTDs’ share of TBA servings will reach 4% by 2029, up from 2% in 2019. The category has a particularly strong TBA servings share in the US (8% in 2024), Canada (8%), Australia (9%) and Japan (13%).

Future absolute volume gains will be concentrated in four markets, mostly established destinations where RTDs have a higher TBA share, plus Brazil. IWSR forecasts predict 2024-29 CAGR volume growth of +1% for the US, +3% for South Africa, +7% for Brazil and +3% for Japan.

“However, broader TBA factors are likely to limit opportunities in other RTD strongholds,” cautions Goldspink. “RTDs are relatively expensive in the lower-growth markets of Australia, the UK and Germany. This, along with lower participation levels, ageing consumers and lower frequency in these markets, impacts their potential.”

IWSR’s analysis of the global RTD category also shows:

Growth driven by frequency, not recruitment

Consumer recruitment has slowed as RTDs mature, with only 5% of RTD drinkers new to the category in 2024 – mostly younger people reaching legal drinking age. Instead, volume gains are being driven by increased frequency of consumption among existing RTD drinkers – particularly younger consumers.