Alcoholic Beverage Companies Embrace the Rise of Ready-to-Drink Canned Beverages
Alcoholic beverage companies are tapping into the trend of consumers moving away from traditional offerings like wine and beer, with ready-to-drink canned beverages emerging as a major beneficiary of this generational shift. The evolving landscape of the crowded RTD category suggests that predicting the next big consumer trend can be challenging.
Unlike other food and beverage segments where familiar tastes endure, the RTD market is characterized by rapid changes driven by social consumption settings like parties.
Michael Nestrud, Vice President of Research and Innovation at Curion, notes, “People seek unique experiences and are influenced by their peers. The social aspect creates a lack of loyalty, leading to changing preferences over time. The category must continue to evolve.”
With the ready-to-drink cocktail market valued at $3.2 billion by Grand View Research last year, major beer producers are investing heavily in RTDs to fuel business growth.
Molson Coors made significant strides with the launch of Happy Thursday spiked refreshers and collaborations like Topo Chico seltzers and Peace Hard Tea. During Molson Coors’ recent earnings call, CEO Gavin Hattersley expressed optimism about the growth of RTDs and its positive impact on the industry.
Premium Spirits and Nonalcoholic Options Reshaping the RTD Landscape
The canned cocktail market is poised for continued growth as companies adapt to evolving consumer preferences, especially among younger generations shifting away from alcohol consumption.
Brands like White Claw and Truly have expanded their portfolios by introducing tequila-based beverages, while Surfside tea and lemonade with vodka gained rapid popularity in 2024, according to Nielsen IQ data.
While vodka and tequila dominate the market, Nestrud anticipates growth in brown liquor and non-sparkling options. “Expect more spirits and diverse bases to emerge this year,” he predicts.
As consumer drinking habits change, companies are exploring nonalcoholic options, mirroring traditional alcoholic drinks in taste and packaging. Nonalcoholic RTDs are seen as a promising frontier in the industry.
Leading beverage brands are venturing into nonalcoholic offerings to cater to a diverse consumer base seeking unique experiences. Products like Ritual’s zero-alcohol alternatives to spirits and Mingle Mocktails’ alcohol-free blends provide choices for consumers looking beyond traditional alcoholic beverages.
With the rise of nonalcoholic cocktails, there’s an opportunity for experimentation with complex flavor profiles to differentiate products in the market.