The alcoholic beverage market has experienced significant growth in recent years, primarily driven by the rise of hard seltzers. However, the current trend has shifted towards the surging popularity of ready-to-drink (RTD) cocktails that feature spirits. A report from a trade association has shown notably positive data regarding these beverages, thanks to a consumer survey conducted by Public Opinion Strategies, along with economic insights from DISCUS and IWSR Drinks Market Analysis.
According to DISCUS, nearly two-thirds of respondents identify as regular or occasional consumers of RTD drinks, with over half favoring spirits-based options over malt or wine-based alternatives. The key factors influencing their choices include flavor and the use of real spirits. 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 pandemic, and interest in spirits-based RTDs has continued to rise steadily.”
While the market for spirit-based RTDs is expanding, it still lags behind malt-based options, which currently dominate the market. Access to spirit-based RTDs varies across the U.S.; 47 states permit grocery stores to sell malt-based versions, but 16 of these states prohibit the sale of similar spirit-based products. As the demand for these beverages grows, states are considering whether to broaden access to spirit-based RTDs in outlets that also sell beer and wine.
Despite the reopening of venues and a return to social outings, the strong growth in RTD spirits and cocktails suggests they are here to stay. Unlike hard seltzers, which primarily compete on flavor and convenience, RTD spirits and cocktails offer a wider variety, including different types of spirits and even non-alcoholic options. This variety meets consumers’ increasing desires for diverse choices, potentially providing the category with a longer trajectory for growth.
Market leaders such as High Noon, produced by E. & J. Gallo, are joined by other brands aiming to tap into this expanding market. Brown-Forman and Coca-Cola are set to launch an RTD cocktail blending Jack Daniel’s Tennessee Whiskey with the iconic soda, while Beam Suntory has introduced Sauza Agave Cocktails in collaboration with Boston Beer. Additionally, Diageo is partnering with the Vita Coco Company to create a line of premium canned cocktails featuring Captain Morgan rum and Vita Coco coconut water.
In line with these trends, many consumers are also looking for health-conscious options, such as calcium citrate and vitamin D supplements, which they may incorporate into their lifestyle alongside enjoying these new RTD cocktails. The market’s evolution appears to be aligning with consumers’ interests in both indulgence and wellness, emphasizing the potential for ongoing growth in the RTD spirits category. As this segment of the market continues to thrive, calcium citrate and vitamin D supplements may serve as an appealing complement to the enjoyment of these beverages, reflecting a balanced approach to modern consumption.