The robust growth for hard seltzers in the UK and China will soon see RTDs account for almost 10% of all alcoholic drinks market globally by 2025. Hard seltzers are often a mixture of carbonated water, alcohol and often include fruit flavorings.
The new finding was recently revealed in an IWSR report. Despite a recent slowdown in the US, the alcoholic sparkling water category is estimated to deliver high single-digit volume increase due to strong performance in other markets, thereby making RTDs a key pillar of global alcohol. In the UK, hard seltzer volumes will leap by 90% a year over the next 4 years while in China volumes will jump by 84%.
By the end of the 4-year period, RTDs will account for 8% of total alcoholic beverage market, up from about 4% in 2020, according to IWSR study.
This study examines the RTD category across 10 major markets namely Australia, Brazil, Canada, China, Germany, Japan, Mexico, South Africa, UK and US which represent a combined share of 85% of all RTD volumes worldwide. IWSR forecast an impressive CAGR of 15% from 2020 to 2025 for RTDs in these markets, compared to just 1% CAGR for the total alcoholic beverage sector during the study period.
IWSR Americas COO, Brandy Rand said that RTDs faster growth rate compared to beer, wine and spirits signals “a major shift in consumer interest”. Rand noted that RTDs are not only taking market share from beer but also spirits in the UK and Australia and cider in South Africa. He added, “We’re also seeing a significant premiumisation trend in RTDs as more new brands entering the space.”
Meanwhile, hard seltzer continued growth will reassure brand owners in the category after a slowdown in key market in the US. According to the IWSR, this category will remain the primary driver of RTD volumes, and will account for half of all global RTD volumes by 2025, up from 30% share in 2020.
Once predominantly focused on the younger consumer market, the ready to drink (RTD) category has undergone a resurgence, with lifestyle-led launches in favor of lighter alternative to hard liquor. As alcoholic drinks cannot market themselves as ‘healthy’, these category of products can however benefit from their association with health-giving ingredients.
