The growth of RTDs has being fuelled by entry of new players and brands in 2021 and 2022, which has added a new layer of dynamism to the category. The market has seen the entry of new hard seltzer brands and spirits-based RTDs such as Karma from Cervecería Centroamericana, Cubata from RFRSH brands, Mangiatto from Industrias Licoreras de Guatemala SA, along with other brands such as Quezalteca.
As new players continue to enter spirit-based RTDs, including strong players such as Cervecería Centroamericana SA with its Karma brand, this is likely to lead to lower price points. Offering affordable and competitive prices will be key to finding a mass audience for RTDs.
Young consumers (of a legal drinking age) who are relatively new to alcoholic drinks are expected to become important consumers for RTDs and could be key to category growth. Younger adults sometimes struggle with stronger options and RTDs offer a more accessible route into consuming alcohol, with these products often having a lighter and fruitier taste that is similar to non-alcoholic drinks.
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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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