Growth in RTD cocktails presents wide range of opportunities for spirit brands
Nuanced strategies can help brands stand out in crowded market
In a June Forbes article titled “Why Ready-To-Drink Cocktails Keep Growing In 2026,” author Noel Burgess notes that although the beverage alcohol industry has a growth problem, ready-to-drink (RTD) cocktails are doing something many alcohol brands would like to do right now — they are growing.
“RTDs have been helped by convenience, lower-ABV drinking and the migration of bar culture into retail,” Burgess writes. “They are no longer coasting on pandemic-era habits or leftover hard-seltzer momentum. In 2026, they are benefiting from something more durable. People still want cocktails, but they want them with less work, lower commitment and, often, less alcohol.”
Burgess further points out that U.S. spirits supplier sales fell 2.2% in 2025 to $36.4 billion, according to DISCUS, noting that the trade group also reported that premixed cocktails, including spirits RTDs, reached $3.8 billion after growing 16.4% year-over-year.
Acknowledging the growth in this space, a recent IWSR Insight, “Too big to ignore: how should spirits companies target the RTD opportunity?,” points out that RTD cocktails are likely a lucrative source of value growth for spirits brands.
However, the Insight notes that making the most of this opportunity is complex, requiring carefully thought-out and nuanced strategies tailored to the demands of individual markets, consumers and occasions.
“This opportunity is simply too big to ignore,” said Luke Tegner, global head of consulting at IWSR, in the Insight. “Within this picture of overall growth, however, there is nuance. Spirits-based RTDs are continuing to grow, while malt-based products are in decline.
“At the same time, innovation is slowing as brand owners focus more selectively on spirit-based variants, premium-plus price tiers and higher-ABV RTDs,” Tegner continues.
As RTD cocktails further crowd the shelf and weaker products begin to disappear, it appears that spirit companies will need to develop more in-depth strategies that meet consumers where they’re at.
For detailed insights about the RTD cocktail space, check out our Special Report in this issue.
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