The outbreak of COVID-19 and the measures taken to contain it led to a sharp decline in on-trade volume sales in 2020. This was largely due to the disruption caused by the lockdowns, notably to bars and nightclubs, seen during the spring and again in November and December during the second lockdown.
Growth in spirit-based RTDs was driven by a particularly strong increase in sales of gin-based RTDs and whisky-based RTDs in 2020. The entrance of new variants continued to boost consumer interest in the category, including the whisky-based Jack Daniel’s & Berry flavour RTDs launched by Brown-Forman in early 2020.
Within spirit-based RTDs, Brown-Forman strengthened its lead in 2020, thanks to the enduring popularity of its Jack Daniel’s & Cola brand, which was boosted by the addition of the new Jack Daniel’s & Berry variant. The shift in demand towards the off-trade in 2020 benefitted spirit-based RTDs brands that are widely available in retailers, including Jack Daniel’s & Cola, while it also gave a boost to the share of private label, notably the largest player Aldi.
Total volume growth in RTDs is expected to be more subdued over the forecast period compared to the review period, as the pace of new product innovations may struggle to be sustained. Furthermore, retailers may not be able to allocate enough shelf space to support the launch of new brand extensions essential to maintaining the level of growth seen in 2020.
Gin-based, whisky-based, and rum-based RTDs are expected to remain bright spots within spirit-based RTDs, with manufacturers expected to continue innovating in terms of flavours and by focusing on more natural ingredients. The recent emergence of low-alcohol RTDs could also contribute to growth, with these products benefiting from a lower tax regime than those with a higher alcohol content.
Other RTDs may start emerging as a significant category in RTDs over the forecast period, largely due to the expected wider availability of hard seltzers, which target consumers seeking low-calorie RTDs. Although still in their infancy in Germany, hard seltzers are expected to resonate well with health-conscious young adults, due to their low calorie and low alcohol content.
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Understand the latest market trends and future growth opportunities for the RTDs industry in Germany with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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RTD stands for ‘ready-to-drink’. Other terms which may be used for these products are FABs, alcopops and premixes. The RTDs sector is the aggregation of malt-, wine-, spirit- and other types of premixed drinks. These drinks usually have an alcohol content of around 5% but this can reach as high as 10% ABV. Premixes containing a high percentage of alcohol of around 15%+ combined with juice or any other soft drink are included here. RTDs are usually marketed as products to be drunk neat, with ice, or as a cocktail ingredient. Fruit-flavoured, vodka-based spirits with an alcohol content of between 16-21% are classified here. Examples: Alizé, Ursus Roter, Berentzen Fruchtige, Kleiner Feigling.See All of Our Definitions
This report originates from Passport, our RTDs research and analysis database.
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