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Analysis

Is RTD a growth opportunity for your brand, and are you ready to win it? 

The Next Round: What’s Driving the Future of RTDs

Analysis
Is RTD a growth opportunity for your brand, and are you ready to win it? 

The Next Round: What’s Driving the Future of RTDs



Ready-to-drink beverages (RTDs) are one of the few bright spots in alcoholic beverages right now. RTD growth is being fueled by several consumer shifts: people are drinking more deliberately, looking for convenience, and making different choices by occasion. But that does not mean every brand has the same right to win.  

Across Western Europe, overall alcoholic beverages are declining, with value down 1.6% and units down 1.9%. RTDs, meanwhile, are growing +11.2% in value and +11.1% in volume. The real opportunity lies in understanding why RTDs are growing, which consumer needs they’re serving, and where your brand can credibly win. 

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RTDs fit modern drinking habits 

Today’s consumers aren’t necessarily drinking less. They’re drinking more intentionally. Across Western Europe, 44% of consumers say they’re drinking less alcohol in venues, while 89% of consumers have changed the way they shop. Yet 48% are still willing to pay more for a better-quality drink.  

Consumers want greater control over what they drink without sacrificing quality or experience. RTDs deliver predictable portions, clear alcohol content and convenient cocktail-style serves. This combination is resonating with drinkers across Western Europe, where 27% of RTD consumers cite portion control as a key reason for choosing the category and 26% value knowing exactly what they are getting. As a result, RTDs are increasingly viewed not simply as packaged drinks, but as an accessible cocktail occasion. 


The strongest RTD ideas are occasion-led 

RTDs have evolved far beyond a single consumption moment and now play across at-home entertaining, festivals, sporting events, after-work drinks, celebrations and outdoor occasions. Nearly half of consumers select different drinks depending on the venue, while 62% are likely to purchase a drink for home consumption after enjoying it on-premise. This means growth is no longer just a product innovation challenge. It is also a distribution, format and channel opportunity. Versatility is one of RTD’s greatest strengths. 


Innovation is driving growth, but not all innovation wins 

Innovation is playing an increasingly important role in RTD growth. In Western Europe, 15.4% of RTD sales come from innovations, up from 13% a year ago, while innovation contribution has declined across beer, wine and spirits. This highlights the category’s ability to continually attract consumers through new formats, flavours and premium propositions.  

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Growth at both ends of the shelf 

Premium and private label innovation are helping expand the category. Luxury RTDs are growing +48.6% year-on-year in Western Europe, highlighting continued demand for distinctive, premium propositions. While private label RTDs are growing +16.3% in value versus +9.9% for branded RTDs, demonstrating how retailers are increasingly driving growth through quality, elevated experiences and innovation-led propositions rather than price alone. 


Winning the next round of RTD growth

RTD is a real growth opportunity, but growth won’t come from simply launching another flavour or format. Whether you’re exploring the right RTD style , ABV mix, or identify the occasions and venues with the greatest potential. The key is knowing where the real opportunities exist. NIQ helps uncover where growth is happening and how to build a strategy that plays to your strengths.  

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