20 Most Popular RTDs in America

In This Article:

In this article, we are going to discuss the 20 most popular RTDs in America. You can skip our detailed analysis of the RTD market in America, the demand for lower tax rates on canned cocktails, and the new RTD cocktail in the market, and go directly to 5 Most Popular RTDs in America

As the name suggests, RTD or ready-to-drink alcoholic beverages are premixed drinks that are ready to be consumed immediately and typically have a lower alcoholic content compared to traditional liquors and spirits, and even some beers. Aside from being super convenient, one of the major factors contributing to the rise of RTDs is the variety of flavors and options they offer. Various brands have stepped up over the years, responding to consumer demand for a wider range of flavors and ingredients, and have introduced a variety of options, including pre-mixed cocktails, hard seltzers, and spiked sodas. RTDs are amongst the most innovative and creative drinks in the market, forever changing, adapting, and growing the potential for a category.

RTD Market in America:

The United States is by far the largest market for RTDs in the world. According to IWSR, the country sold the equivalent of 387 million nine-liter cases in 2021, more than double the volumes in second-placed Japan. Although the American RTD market was flat last year, ending a period of rapid volume growth, it rose in value by 6% due to a combination of inflation and premiumization, reaching $18.2 billion. The market is expected to be valued at $21.1 billion by 2027, growing at a CAGR of 1% during the forecast period. 

While malt-based RTDs still retain a 91% share by volume in the American RTD market, spirit-based RTDs grew by 51% in 2021, approximately double the growth of the wine-and malt-based categories. As mentioned in our article – 25 Most Popular Spirits in the World –  the spirits-based RTDs are expected to grow at a CAGR of 33% in volume in the U.S. by 2025. 

As consumers continue to look for ‘healthier’ alcohol options, spirit RTDs are responding with spirit-based seltzers with natural flavors and fewer calories. Spirit RTDs like Owl’s Brew’s Tea-based Seltzers claim to be alcoholic drinks that are good for health, benefiting from the ‘health halo’ created by ingredients like vitamins, anti-oxidants, and probiotics

Lower Tax Rates for Canned Cocktails: 

The spirits industry has an effort underway to lobby states to lower taxes on canned cocktails to more closely mimic those placed on beer and hard seltzer. Since distilled spirits face the stiffest tax rates due to their high alcohol content, canned cocktails are also taxed heavily at every level. However, distillers argue that Ready-to-Drink cocktails have similar alcohol content as beer and hard seltzer and are treated unfairly just because their drinks contain spirits. As we stated in our article – 20 States with the Highest Alcohol and Beer Tax – the U.S. consumption of canned cocktails grew 52.7% in 2020 compared to the previous year, accounting for 6.9% of the total volume in the alcoholic ready-to-drink category. The higher sales have encouraged liquor companies to take the offensive in a fight for tax parity.