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The RTD Revolution: Statistics, Strategies, and Insights

Discover the latest RTD trends and use them to accelerate your brand's growth.

In recent years, the ready-to-drink (RTD) beverage industry has emerged as one of the most dynamic and fast-growing sectors in the global market. Offering convenience, innovation, and variety, RTD beverages cater to the modern consumer's demand for quick and enjoyable drink options. Whether it’s a refreshing iced tea, a functional protein shake, or a sophisticated canned cocktail, RTD products are reshaping how people consume beverages. In this guide, we explore the driving forces behind the industry's success, the latest trends shaping the market, and the future of this ever-evolving category.

What are RTD Beverages?

RTD (Ready-to-Drink) beverages are prepackaged drinks designed for immediate consumption, requiring no additional preparation, mixing, or equipment. These beverages are available in both alcoholic and non-alcoholic categories, catering to a broad spectrum of consumer preferences.

Key Subcategories of RTD Beverages:

  • Alcoholic RTDs: Premixed cocktails (e.g., margaritas, mojitos), hard seltzers, canned wines, and ready-to-serve spirits-based drinks.
  • Non-Alcoholic RTDs: Bottled or canned teas, coffee beverages (e.g., cold brews, lattes), energy drinks, functional waters, smoothies, and meal replacement shakes.

Key Stats on the RTD Market

Learn more: Important Stats on the Ready-to-Drink Cocktail Market

The Appeal of Ready-to-Drink Beverages

Why are RTD beverages so appealing to consumers? It would be easier to look at what consumers don’t like about RTDs (hint: it’s not much). Here are some of the main reasons why RTD beverages are flooding shelves from gas stations to grocery stores.

Convenience Factor

The biggest draw of RTD beverages is how convenient they are. They require no preparation, making them ideal for on-the-go lifestyles. Whether commuting, working, or exercising, consumers can enjoy these drinks without extra effort or equipment. RTD cocktails have especially grown in popularity over the years, making it easier for consumers to enjoy designer alcoholic beverages without any bartending skills or special ingredients of their own. The same goes for RTD coffee beverages–there’s no need to visit a coffee shop when an iced vanilla latte is ready to drink in the fridge.

Variety

The RTD market offers a wide range of options, including non-alcoholic drinks like iced coffee or tea, canned cocktails, and functional drinks like protein shakes. This wide variety of both flavor and purpose keeps consumers interested, inspiring them to try new products simply for the experience.

Healthy Alternatives

Many RTD products are formulated to align with health-conscious trends. Options like low-sugar drinks, functional beverages with added vitamins or probiotics, and plant-based or organic formulations appeal to wellness-minded consumers. Additionally, as more consumers move away from alcoholic beverages, the RTD market rises to meet the needs of those looking for healthier alternatives that still scratch the itch of after-work drinks.

Portability and Sustainability

Consumers appreciate grab-and-go sizes, particularly in multi-packs, for ease of transport and consumption. Compact and lightweight packaging makes RTD beverages easy to carry and store, adding to their practicality for busy lifestyles. And, as consumers grow more eco-conscious, many RTD brands are embracing sustainable packaging, like aluminum cans, to attract environmentally aware buyers.

The Biggest Contenders in the RTD Market

Industry Leaders: Big Brands

Big, established brands have already carved out a significant space in the ready-to-drink market. Starbucks is one of the main pioneers of RTD coffee drinks, having introduced their bottled Frappuccinos to the market in the 1990s. Now, consumers can find coffee beverages from La Colombe, Chameleon Coffee, and even Dunkin' Donuts in the RTD aisle.

Big liquor brands haven’t shied away from the opportunities of the RTD industry either. Since the launch of both hard seltzer brands in 2016, White Claw and Truly have become household names, paving the way for other brands to launch their own RTD cocktails. Both Jim Beam and Jack Daniels launched their own RTDs in the early 2020s, and the Gallo-owned brand High Noon became the country’s best-selling RTD spirit in 2024.

Disruptors: Craft and Emerging Brands

Established brands aren’t the only ones benefiting from the RTD boom. Countless craft and boutique brands have launched RTD products with rapid success. Alternative soda brand Olipop bravely launched into the space in 2018, competing with already well-established brands like Coke and Pepsi products. Within five years of launch, Olipop is already valued at $500 million and shows no signs of slowing down.

Consumers are also looking for better RTD alcohol alternatives. Startup RTD cocktail brand Good Sunday was created by a pair of friends who wanted higher-quality alcoholic beverages that didn’t cause such dreadful hangovers the next day. They now stand with other emerging brands like Tip Top Proper Cocktails and Golden Rule Spirits as contenders to the industry giants.

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Trends Shaping RTD Beverages in 2025

The RTD beverage market is evolving rapidly, driven by consumer demand for convenience, health-conscious choices, and innovative flavors. Here are some of the key trends shaping the industry.

No/Low Alcohol RTDs

There’s growing interest in RTD beverages with lower alcohol content or non-alcoholic versions for mindful drinkers. Hard seltzers and low-calorie alcoholic beverages continue to dominate, with a focus on moderation and "clean drinking." Some brands have exercised the spirits entirely for alcohol-free mocktails for sober and sober-curious consumers.

Learn more: No and Low Alcohol Market: 5 Stats on this Booming Market

Sustainability

Many companies are working to lower their carbon footprints in response to growing eco-conscious consumer preferences. Brands are shifting away from plastic and toward sustainable packaging like aluminum cans, glass bottles, or other compostable materials to reduce environmental impact.

Functional Ingredients & Hybrid Categories

Many RTD products now include ingredients like adaptogens, probiotics, prebiotics, collagen, and vitamins to appeal to health-conscious consumers looking for a little more from their beverages. Blends like energy drink cocktails, coffee-flavored beers, or sparkling water with caffeine blur traditional beverage categories. Some brands are experimenting with combining alcohol and functional ingredients, like adaptogenic hard seltzers or CBD-infused cocktails.

Premiumization

Craft, high-quality, and boutique brands are starting to gain traction, and consumers are willing to pay more for these premium options. These brands are creating high-end canned cocktails with top-shelf ingredients, appealing to cocktail enthusiasts who want bar-quality drinks at home. 

5 Ways to Stay Ahead in the RTD Market

To stay ahead in the competitive RTD beverage market, brands need to focus on innovation, consumer engagement, and adaptability. Here are actionable strategies for success.

1. Embrace Consumer-Centric Innovation

Always keep an eye on what consumers are looking for. Stay attuned to changing preferences, such as the growing demand for health-conscious and functional beverages. Experiment with unique flavor profiles, global inspirations, and hybrid beverages. Alcohol brands can develop high-quality pre-mixed cocktails for consumers seeking bar-quality drinks at home or expand their offerings to include mindful drinking solutions for sober-curious consumers.

2. Focus on Health and Wellness

Brands should also explore how they can make classic beverages healthier or create new wellness options for health-minded consumers. Sometimes, all it takes is adding ingredients like probiotics, adaptogens, collagen, or electrolytes to align with wellness trends. Prioritize transparency with simple, recognizable ingredients and no artificial additives. Offer products that fit keto, vegan, gluten-free, or low-calorie lifestyles.

3. Sustainability as a Core Value

Consumers want to steer clear of plastic as much as they can, so use recyclable, biodegradable, or reusable materials when developing your RTD products. Invest in sustainable production and shipping practices to appeal to eco-conscious consumers. Be sure to highlight your sustainability efforts on packaging and marketing campaigns to build trust.

4. Strengthen Brand Identity

A strong brand identity never goes out of style. Create visually appealing designs that resonate with your target audience and stand out on shelves or social media. Use product packaging to share your brand’s mission, origin, or sustainability journey to connect emotionally with consumers. Work with social media influencers, partnerships, or campaigns to reach niche markets like health enthusiasts, outdoor adventurers, or cocktail lovers.

5. Embrace an Omnicommerce Strategy

Direct-to-consumer RTD sales are on the rise, and customers relish the convenience this provides. Brands should look for ways to implement omnicommerce strategies to stay agile and present in the market. Build strong e-commerce platforms to reach customers directly and offer subscription models for convenience. Collaborate with major retailers, grocery stores, and boutique shops for broad availability. Tailor offerings for regional markets while exploring global expansion opportunities.

Brands can leverage technology to make their omnicommerce strategies more efficient. The Grappos Product Locator and Buy Online Plus are turnkey solutions designed to help RTD brands increase product visibility and increase customer satisfaction. With convenience being such an integral part of RTD beverage success, brands cannot afford to bypass tools like these.

Request a Grappos Product Locator demo today →

Learn more: How to Use Product Locators to Drive Wine & Spirits Sales

Meeting Consumer Demands in the Ready-to-Drink Era

The RTD beverage industry is much more than a passing trend—it’s a reflection of changing consumer behaviors, technological advancements, and the pursuit of convenience in today’s fast-paced world. From health-conscious functional drinks to indulgent alcoholic cocktails, RTD beverages have carved out a significant space in everyday life. As brands continue to innovate with sustainable packaging, diverse flavors, and wellness-focused ingredients, the future of the RTD beverage market looks bright. 

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Eric Kunisawa

Founder & CEO

Eric Kunisawa is the founder of Grappos. He's been successfully helping businesses connect customers with their products since 2008.

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