RTDs is set to prosper over the forecast period as new product development and innovation will continue to attract consumers to the category. The consumer focus on health and wellness is expected to translate into a switch to products with a lower alcohol content, and there are therefore growth opportunities new sugar- and preservative-free RTDs going forward.
RTDs’ healthy volume growth over the forecast period comes from its relatively low base. As foodservice establishments and nightlife venues return to more normal activity levels after the pandemic, on-trade volume sales of RTDs are expected to benefit.
There are potential threats to growth over forecast period. Price rises were significant in 2022 and if this continues over the forecast period, as pressures such as rising global energy prices and continuing global supply constraints feed into further price rises, this will dampen volume demand.
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RTD stands for ‘ready-to-drink’. Other terms which may be used for these products are FABs, alcopops and premixes. The RTDs sector is the aggregation of malt-, wine-, spirit- and other types of premixed drinks. These drinks usually have an alcohol content of around 5% but this can reach as high as 10% ABV. Premixes containing a high percentage of alcohol of around 15%+ combined with juice or any other soft drink are included here. RTDs are usually marketed as products to be drunk neat, with ice, or as a cocktail ingredient. Fruit-flavoured, vodka-based spirits with an alcohol content of between 16-21% are classified here. Examples: Alizé, Ursus Roter, Berentzen Fruchtige, Kleiner Feigling.See All of Our Definitions
This report originates from Passport, our RTDs research and analysis database.
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