Retention trumps recruitment as RTD category matures

RTDs are still bucking the negative trends seen across most of today’s beverage alcohol markets, but as the category continues to grow share, the drive for volume growth is shifting from recruitment to retention, as well as maintaining or growing consumption frequency.

According to IWSR’s RTDs Strategic Study 2026, which focuses on the world’s 10 leading markets*, accounting for more than 80% of the global category, RTD volumes grew by +2% in 2025, while value outstripped that figure with a +8% rise.

Retail Sales Value grew ahead of volume in seven out of the top 10 (T10) markets – the exceptions being Canada, China and Germany – and RTDs now account for 4% of total beverage alcohol (TBA) servings, up from 1% in 2015.

Looking to the future, IWSR forecasts indicate that RTDs will continue to gain share of TBA, with volume growth forecast in all 10 markets. These share gains are compounded by wider TBA losses in all countries except Brazil, Mexico and South Africa. RTDs’ share of servings was 3.8% in 2025, up from 2.7% in 2020 – and is predicted to rise further to 4.4% by 2030.

“However, as RTDs continue to expand their presence in the global marketplace, the emphasis is moving from recruitment to retention,” says Susie Goldspink, IWSR’s head of RTD insights. “Recruitment, particularly among younger consumers reaching legal drinking age (LDA), remains a source of growth, but consumption frequency and consumer retention are key drivers.

“Across the T10, most RTD buyers entered the category three or more years ago, with new entrants representing only 4% of RTD buyers in 2026.” However, the picture varies by market: in Germany, one of the least developed RTD markets in the T10, 12% of RTD consumers entered the category in 2026, and in Japan it was 7%. At the other end of the scale, only 1% of RTD consumers in China were new entrants this year, while in Mexico it was 2%.

These new entrants to the category tend to display different characteristics to established RTD buyers, according to IWSR consumer research. They skew to Gen Z and Millennial and are more likely to buy RTDs ‘on the go’ in retail, and to be occasional RTD drinkers. They are also less likely than older drinkers to be influenced by well-known brands.

As the cadence of consumption becomes a more important factor the share of RTD consumers who are ‘frequent’ drinkers (ie drink once a week or more) is remaining stable at 50% across the T10 markets, despite falls for other TBA categories, highlighting RTDs’ resilience against more general market declines. However, the UK and China now have fewer frequent RTD consumers vs 2025, with China retreating to levels similar to 2023.

In demographic terms, males and Millennials continue to be the most frequent RTD consumers.

Brand loyalty is another important factor in retention – and there are signs that loyalty is increasing, especially among Gen Z consumers, as RTD brands become more established. According to IWSR consumer research, 44% of RTD consumers are brand-loyal when their preferred RTD wasn’t available, seeking their preferred choice elsewhere or selecting another within the brand range; this is significantly higher than in 2025.

“Here, distribution and shelf strategy are key,” explains Goldspink. “RTD buyers are still more likely to be non-loyal. Buyers with narrow consumption timelines – those purchasing to drink on the same day – are more likely to switch to a similar flavour from a different brand if their preferred RTD is not available. Flavour, not brand, is the stronger driver for same-day consumption, highlighting the importance of strong availability and in-store activation.”

IWSR research also indicates that RTD buyers drinking for social status and moderation are more likely to be brand-loyal, presenting opportunities for brands to reinforce that loyalty through premium positioning and moderation-focused product extensions.

“The purchasing of RTDs is increasingly omnichannel, growing across ecommerce and the on- and off-premise, while serving habits vary by generation,” says Goldspink. “Premium-minded, older consumers increasingly pour their RTDs into a glass, while the category remains a grab-and-go, straight from the can option for Millennials. Channel and format strategy should be tailored by sub-category and occasion, rather than applied uniformly.”

*Australia, Brazil, Canada, China, Germany, Japan, Mexico, South Africa, UK and US

Come and talk to our consulting team who can help you determine the optimal route to RTD success within the increasingly complex world of beverage alcohol.

IWSR’s RTDs Strategic Study 2026 and US Spirits-based RTD Report 2026 are both available now – request a callback for more information.