US RTD Alcoholic Beverages Market Report 2022

This report provides comprehensive and current information and analysis of the RTD alcoholic beverages market including RTD alcoholic beverages market size, anticipated market forecast, relevant market segmentation, and industry trends for the RTD alcoholic beverages market in the US.

Current market landscape

Six in 10 US adults purchase ready to drink alcoholic beverages, up from just under half last year. While the primary audience for RTDs are adults age 22-34, the category has mainstream and widespread appeal. All adults under-55 overindex in purchases, and offerings have especially strong appeal with audiences such as parents and multi-cultural consumers.

Sales success has allowed the RTD category to maintain a very active innovation pipeline over the last few years. However, for most measured beverage types, the portion of those that report being either loyal purchasers or interested purchasers is outpaced by those who show total disinterest in purchasing. Awareness, but disinterest in trial, suggests a level of product distrust or choice fatigue. This serves as a warning sign, signaling the importance of quality over quantity and avoiding innovation for innovation sakes.

Market share and key industry trends

• Nearly six in 10 adults purchased an RTD in the past three months, up from 49% last year. The increases were driven by new product launches, primarily in the canned cocktail space.
• While alcohol consumers 22-34 are the most engaged with RTDs, they appeal to all consumers under-55.
• Parents and multi-cultural consumers represent two target groups with outsized interest and opportunity.
• Many leading purchases factors, including flavor, alcohol strength and base type rose in influence from 2021-22.
• Less than three in 10 buy RTDs as an impulse purchase, indicating decisions are informed and planned.

Future market trends in RTD alcoholic beverages

RTD variety, in both buyers and product offerings, will help the category to be more resilient amidst high inflation. The category and segments within it manage to reach all measured financial situations, from those who self-report as financially healthy to those that are struggling or in trouble. However, less established preferences and less mature shopping habits can work against the category as some consumers’ stretch their budgets through sacrifices and trade-offs.

The newest segment in the market, canned cocktails, has an especially strong opportunity for success in current socioeconomic conditions. As consumers’ pull back on bar and restaurant alcohol spending, and as home bartending budgets shrink, these offerings can fill the void and make the cocktail experience accessible. To be an accepted replacement, RTD brands should look to menu data, and opt for cocktail types that are familiar over those that are trendy.

Read on to discover more about the RTD alcoholic beverages consumer market, read our Foodservice Alcohol Trends – US – 2022, or take a look at our other Drinks research reports.

Quickly understand RTD alcoholic beverages

• RTD products purchased.
• Experience with recently launched RTD alcoholic beverages.
• Interest in canned cocktails.
• RTD purchase factors.
• RTD shopping attitudes.
• RTD brand associations.

Covered in this RTD alcoholic beverages market report

Brands include: Truly, Corona, Bud Light, Vizzy, High Noon, Twisted Tea, Mike’s, Seagram’s, Rita’s, Four Loko, Corona, Michelob, Jack Daniel’s, Smirnoff, Cutwater, Jose Cuervo, Monaco, 1800, Crown Royal, Buzzballz Chillers, Bacardi, Chi-Chi’s, On the Rocks, Ketel One, Absolut, Cazadores, Glorida Seltzer, Three Birds, Lavery Brewing, Tio Rodrigo, Two Chicks, Martin House, Boulevard Beverage Co, Odd Side Ales.

Expert analysis from a specialist in the field

This report, written by Sydney Olson, a leading analyst in the Food and Drink sector, delivers in-depth commentary and analysis on RTD alcoholic beverages market research to highlight current trends and add expert context to the numbers.

Launch activity and popularity of canned cocktails are building upon the success and excitement already present in the RTD alcoholic beverages space. The category continues to deliver on the convenient, flavorful and fun beverages consumers crave. However, fading novelty and inflationary pressures is intensifying competition, calling for brands to build and communicate clear and compelling value and differentiation.

Sydney Olson
Senior Food and Drink Analyst