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Ready-to-Drink (RTD) Alcohol Industry Trends

Explore the booming RTD alcohol market. Learn why spirit-based RTDs are rising and how convenience stores can profit with smart strategies and compliance.
OCSA Convenience Stores report on RTD - ready to drink alcohol







 

Unlocking Growth: The RTD Alcohol Boom for C-Stores

 

The Rise of Ready-to-Drink (RTD) Alcohol

Ready-to-Drink (RTD) alcoholic beverages are pre-mixed drinks offering unparalleled convenience, consistent quality, and a vast variety of flavors. They are a dynamic and influential sector, representing a significant opportunity for convenience stores.

⏱️

Convenience

No mixing, ready to enjoy instantly.

🏆

Consistent Quality

Expertly crafted for reliable taste.

🍹

Flavor Variety

Diverse options for every palate.

A Market on the Move 📈

The RTD market is experiencing robust growth, making it a must-stock category. It was the only alcohol category to record growth in 2023.

$46.64B

Market Value in 2024

$75.30B

Projected Market Value by 2031

7.1%

CAGR (2024-2031)

Global RTD Market Value Projection

 

This chart illustrates the strong upward trajectory of the global RTD market value, highlighting the significant growth potential for retailers.

Global RTD Volume Growth

 

RTD volumes are consistently increasing, driven by consumer demand for convenience and variety. This chart shows key growth percentages.

Decoding RTD Categories 🍸

RTDs are diverse, primarily categorized by their alcohol base: Malt, Spirit, or Wine. Understanding these distinctions is key for stocking and compliance.

RTD Market Share by Base Type (Volume 2024)

 

Malt-based RTDs currently hold the largest volume share. However, spirit-based options are rapidly gaining consumer preference and driving growth.

The Rise of Spirit-Based RTDs

47.8% market share in the product type segment (2024).

The only base type showing consistent growth, outperforming parent categories.

Vodka is the most popular spirit base globally, while Tequila sees the largest innovation focus.

Consumer Perception vs. Reality

 

A significant 54% of consumers associate hard seltzers with spirits, though 83% are actually malt-based. This highlights the importance of clear labeling and staff knowledge.

Meet Your RTD Consumer 🎯

Younger generations and health-conscious individuals are key drivers of the RTD market.

Key Demographic: 18-25 Age Group

 

The 18-25 age group commands a leading 36.4% market share, influenced by social media, packaging, and a preference for innovative, low-calorie options.

What Drives Their Choice?

  • Convenience & Portability: Essential for on-the-go lifestyles.
  • Innovation & Unique Flavors: Over 50% prioritize unique flavors.
  • Health & Wellness: Growing demand for low-calorie, low-sugar, organic options.
  • Premiumization: Willingness to pay more for quality ingredients and sophisticated profiles.
  • New Entrants: ~16% of RTD consumers are new to the category in the past two years, often younger.

Evolving Tastes & Market Trends 🚀

🚀 Shift to Spirit-Based

Consumers are “trading up” to spirit-based cocktails, seeking premium quality. This segment is outperforming its parent spirit categories.

⭐ Premiumization Power

Super-premium RTDs saw a 71% CAGR (2018-2021). Consumers value high-quality ingredients and elegant packaging.

🌿 Health & Wellness Focus

Strong demand for low/no sugar, low-calorie, and natural/organic options. The low/no sugar segment projects the highest CAGR.

🍹 Flavor Dynamics

While unique flavors are key (49% in 2024), the market is maturing. Focus is shifting from pure novelty to consistent quality and trusted brands.

📈 Maturing Innovation

New product launches have slowed, but overall volumes grow. This indicates a “flight to quality” and reliance on established brands.

🍵 Hard Tea Surges

Hard tea is projected to be the fastest-growing RTD subsegment in the U.S. (18% volume CAGR 2023-2028).

The Convenience Store Advantage 🏪

C-stores are uniquely positioned to capitalize on the RTD trend due to accessibility and impulse purchase potential. Here’s a strategic path:

1. Smart Product Selection

Curate diverse, prioritize spirit-based, focus on proven brands & “better-for-you” options.

➔
➔

2. Strategic Merchandising

Eye-level displays, endcaps, cross-merchandising, clear signage, cold storage.

➔
➔

3. Effective Promotions

Highlight convenience, quality; use social media (legally), targeted campaigns.

➔
➔

4. Regulatory Compliance

Master state laws, licensing, strict age verification, responsible service training.

This simplified flow outlines the key areas C-store owners must focus on to successfully integrate RTDs and maximize their sales potential, ensuring both profitability and responsible retailing.

Your Path to RTD Success!

The RTD alcohol category offers substantial growth. By understanding market dynamics, consumer preferences, and prioritizing responsible sales, convenience store owners can unlock significant revenue and become go-to destinations for these popular beverages.

Focus on a curated selection, smart merchandising, targeted promotions, and unwavering regulatory compliance.

 

Data based on the “Unlocking Growth: A Convenience Store Owner’s Guide to Ready-to-Drink (RTD) Alcohol” report.

This infographic is for informational purposes only.



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