During the review period, the growing popularity of cocktails in on-trade establishments competed with RTDs, as consumers preferred the preparation of these drinks using spirits, fresh juice and mixers. However, the emergence of the pandemic had a marked impact on the category with consumers shifting towards home-based drinks in 2020, and leading to an upturn in demand via off-trade.
RTDs offers a wide variety of flavour options off-trade, which enables consumers to experiment rather than having to purchase separate ingredients including large bottles of spirits. Furthermore, RTDs also offers convenience for single servings for immediate consumption without the need to purchase mixers to create a cocktail.
RTDs is expected to gain growth momentum via off-trade over the forecast period in line with new legislation, which does not require the possession of a licence. Free movement of individuals in possession as well as social gatherings at home are expected to have a positive impact on off-trade sales, while on-trade sales will return to decline as many consumers opt for freshly-prepared cocktails in bars.
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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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