It’s no secret that we all love ready-to-drink products (RTDs), and now independent research from IWSR confirms the hype, with industry forecasters predicting that ready-to-drink products will soon outsell wine in the United States.
A report from IWSR Drinks Market Analysis shows that RTDs displayed incredible growth in 2020, scaling up by 26.4% – it was the only alcohol category to grow at all during the COVID19 lockdowns – and being snapped up by drinkers across all demographics.
Analysis shows that the category is so successful that RTD volume is projected to increase by almost +27% this year, driven largely by growth in the US, which holds nearly half (44%) of global RTD volume.
An interesting note is that in the USA, where hard seltzers have increased by +130%, RTD volume is already larger than the country’s total spirits category.
A new report by IWSR Drinks Market Analysis suggests the US will soon be consuming more RTDs than wine. Should US winemakers be worried?
Speaking on the report, Brandy Rand, COO of the Americas at IWSR Drinks Market Analysis said:
“Given the growth of this trend and the need to stay relevant, innovation within the wine industry is starting to quicken pace in regard to non-traditional wine options.
“Several winemakers have already invested in the ready-to-drink space. Within the last several months alone, several major brands have introduced wine spritzers.”
Winemakers moving into the RTD sphere are not always doing so with wine-based products. Gallo for example owns the wildly popular High Noon vodka and soda hard seltzer brand.
“While there are some positive growth trends within the traditional wine segment, for many owners, having brand extensions that meet these changing consumer needs is a smart marketing strategy,” said Rand.
Japan is the second biggest market for RTDs with a 22% share, followed by Australia, Canada, and China.
For more information, head over to the IWSR website.