Too big to ignore: how should spirits companies target the RTD opportunity?

The dynamic RTD category is a potentially lucrative source of value growth for spirits brands, but making the most of this opportunity is complex, requiring a carefully thought-out and nuanced strategy tailored to the demands of individual markets, consumers and occasions.

RTDs are pursuing a prolonged growth trajectory against a challenging backdrop for beverage alcohol as a whole, expanding their volumes by +3% in 2025, while all other major categories declined, according to IWSR data. Volumes increased at a CAGR of +8% between 2019 and 2025, and are forecast to continue to rise, with a predicted 2025-30 CAGR of +2%.

As a result, RTDs overtook vodka during 2025 in terms of global value.

“This opportunity is simply too big to ignore,” says Luke Tegner, Global Head of Consulting at IWSR. “Within this picture of overall growth, however, there is nuance. Spirits-based RTDs are continuing to grow, while malt-based products are in decline.

“At the same time, innovation is slowing as brand owners focus more selectively on spirit-based variants, premium-plus price tiers and higher-ABV RTDs. A successful launch therefore needs more than a can, a flavour and distribution. It needs to define a clear role in the target consumer’s drinks repertoire.”

The right occasion

RTDs are popular with consumers because they solve a practical need – they are convenient, portable, consistent and easy to share – but this alone is no longer any guarantee of success. Instead, as the category matures, brands need to decide where they fit: at-home aperitif, outdoor social occasion, pre-party consumption, casual meal pairing, festival, watching sport, on the beach, at a barbecue – or in a more premium cocktail moment.

“It’s important to understand what job a particular RTD is doing better than a beer, wine, spirit, cocktail or, indeed, rival RTD,” explains Tegner. “A spirit-based canned cocktail might win by making the creation of bar-quality serves effortless. A lower-ABV spritz might be ideal for stretching a relaxed afternoon occasion. A higher-ABV RTD might appeal when consumers are looking for intensity and flavour  – a buzz.