RTD cocktails are popular with consumers who enjoy convenience, high-quality ingredients and mixers, and balanced flavor profiles of premium cocktails. Many also appreciate the portability of these drinks when attending social occasions or relaxing at home.
Spirit-based RTDs are gaining market share against other options like hard seltzer, with more flavor innovations and brands entering the space. An understanding of the key factors driving this growth is crucial to success in the category.
What makes a RTD good?
A ready to drink cocktail can be made with a variety of ingredients, allowing producers to offer an extensive menu of flavors that appeal to a wide audience. These beverages can be prepared in batches to reduce the cost of ingredients, and to reduce waste. A high-quality RTD can provide a premium drinking experience, comparable to a handcrafted cocktail, by using premium spirits, curated mixologists, and a variety of fresh garnishes.
The convenience and value of products are becoming increasingly important to consumers. RTD cocktails are a great way to meet these needs as they don’t require you to make a cocktail or hire bartenders. This allows consumers to enjoy sophisticated cocktails at home, on the go, or while entertaining.
Many RTDs with spirit base are crafted using flavored vodka or Gin, delivering an authentic and premium taste. While malt-based RTDs are also growing in popularity, they typically have higher ABVs and may not appeal to those seeking a low-alcohol drink. To combat this, brands are introducing RTDs which have lower ABVs as well as more attractive pricing. In addition, the placement of RTDs at retail stores is a key factor that influences whether or not consumers will choose them.
How do RTDs differ from bottled cocktails?
RTDs (ready-to-drink) are alcoholic mixes that are premixed, packaged in pouches, Tetra Paks or bottles. They are convenient for consumers, as they don’t have to worry about balance or technique. Businesses can also stock them and serve them easily, since they don’t require a bartender.
As the market has grown, brands have been innovating beyond single-serve cans. RTDs come in pouches or ice-pops, or even in plastic balls. The best small-batch cocktail makers have worked closely with expert mixologists to ensure their recipes, flavors and alcohol levels are up to the standards of a traditional restaurant or bar.
While simple 2-ingredient drinks like tequila and soda or vodka and tonic remain the most popular base, there is a trend towards more complex RTD cocktails that highlight the interplay between spirit, syrups, and bitters. These more sophisticated cocktails are helping to grow the RTD market, attracting discerning consumers looking for a better alternative to the low-quality, sugary mixers currently dominating the category.
For cocktail lovers who enjoy spur-of-the-moment hangouts with friends or a quiet night in, RTD cocktails are the perfect drink to keep on hand. They are also an excellent choice for businesses to offer their customers in places where it would be impractical or impossible to stock a full bar, such as airplanes, stadiums, and theatres.
How do RTDs appeal consumers?
RTD cocktails are popular with individuals who value convenience. They are ideal for social gatherings and beach outings.
Moreover, they help people who love to entertain avoid the fuss of mixing individual cocktails, which can take hours. A can of RTD cocktails eliminates the need to measure multiple ingredients and is ready when you are.
RTDs are a popular choice for consumers who want authentic products made from high-quality ingredients. They aren’t impressed by mass-produced canned drinks with bright coloring and citric acid formulated to extend shelf-life, and they want daiquiris that taste like real lime juice and gin martinis that use actual barrel-aged spirits.
Many RTD cocktail brands are incorporating healthier ingredients and less sugar. This trend appeals to consumers who are mindful of their dietary choices, and it’s helping to grow the market.
Small-batch manufacturers are also introducing unique concoctions built around local ingredients. These craft RTDs are a new and exciting experience that speaks of the growing importance placed on authenticity and craftsmanship when it comes to food and drink production. Digital campaigns are another common way to raise brand awareness and engage customers. These include contests, virtual happy hour, hashtag challenges and more. All of these increase brand visibility and foster loyalty.
