RTD's already bigger than spirits in the US, and set to leapfrog wine
The ready to drink (RTD) category in the US has rocketed in the past year, with the sector already larger than the country’s entire spirits category.
It was the only alcohol sector to grow during 2020, posting double digit growth of over a quarter (26.4%), and has been so successful in the US that it is now set to leapfrog the entire wine category as well, according to a new report by the IWSR.
The US currently accounts for almost half (44%) of global RTD volumes, and in recent years has experienced surging sales, rocketing by 130%. And it is the US which is driving the entire category, which the IWSR predicts will increase by a further 27% this year. The researchers also claim the US will shortly be consuming more RTD’s than wine.
“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,” said Brandy Rand, COO of the Americas at IWSR Drinks Market Analysis.
“Several winemakers have already invested in the ready-to-drink space. Within the last several months alone, several major brands have introduced wine spritzers.”
But not all winemakers muscling into the RTD space are doing so with wine based prodcuts, with Gallo’s hugely successful High Noon vodka and soda hard seltzer brand being a prime example.
“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 largest market for RTDs with a 22% share, followed by Australia, Canada, and China.