According to the experts, RTDs will have a 22% volume share of total beverage alcohol in the United States by 2025, up from the present value of 9.6%.
According to IWSR Drinks Market Analysis, the ready-to-drink sector is currently larger in volume than the whole spirits category in the United States. In 2020, the RTD category, which includes hard seltzers, saw the greatest rise in consumption in the United States. According to the IWSR, the category grew larger than wine in the United States by the end of 2021.
RTDs increased by 62.3% in volume in 2020, headed by hard seltzers, which increased by 130%. Hard seltzers account for 56.7% of the overall RTD category in the United States, followed by flavoured alcoholic beverages (FABs), which account for 25.9%.
The IWSR has also noted an increase in the launch of spirit-based RTDs at higher costs due to taxes in the US, but volumes remain tiny in comparison to the malt-based category. Multiple US states have recently approved or are considering legislation to reduce taxes on spirit-based RTDs.
In the United States, total alcohol volume increased by 2% in 2021, the highest increase in the market since 2002. The IWSR forecasts a moderate growth rate over the next five years as normalisation returns, with a 0.5% gain in volume and a 2.8% increase in value CAGR between 2020 and 2025.