Uncharted Growth for RTDs

What is in store for RTDs in 2022?

Ready-to-Drink” (RTD) refers to packaged beverages that are sold in a prepared form and are ready for consumption. Specifically, RTD alcoholic drinks allow consumers to emulate the out-of-home experience at a cheaper price. We have seen an explosion in this market for “Ready to Drink” (RTDs) consumers.  Data Bridge Market Research analyses the RTD market to account for $24.1billion by 2027, growing with the compound annual growth rate of CAGR of 7.0%-12.0% throughout this period. Hard Seltzers are the king of the ready-to-drink cateogry, but many don’t realize that full-flavor/cal FMBS (Flavored Malt Beverage), like Mike’s and Twisted Tea, are among the top five RTD brands, of any beverage alcohol base. Specific brands have really taken off in our current Kramer portfolio.









Consumers in developed countries have become more health-conscious, thereby switching to flavored drinks, like lemon, cranberry, orange, and passionfruit, which have low alcohol content, ranging from 4 to 7%. Therefore, low Alcohol By Volume (ABV) drinks have been gaining traction over the years. Gin and tequila-based products, in particular, have a high demand among consumers

The changing lifestyle choices to improve health and the trend of responsible drinking is expected to boost the product demand. Moreover, the availability of organic, gluten-free, and keto-friendly RTD cocktails is encouraging consumers to opt for these products. Growing consumer inclination toward, Ready-To-Eat (RTE) or RTD products, owing to their busy lifestyles and hectic work schedules is driving the market. The increasing number of working individuals is anticipated to drive the product demand.

Wine-based cocktails is projected to be the second-fastest-growing segment from 2021 to 2028. Consumers perceive wines to be healthier than spirits and malts as they usually contain fruit juices, such as grapefruit, oranges, passionfruit, lemon, mango, and berries, which drives their demand. It also resonates with changing consumer trends towards leading a healthy lifestyle by shifting to beverages with low-ABV content. This has propelled manufactures to introduce healthier beverages, that are gluten-free, low-carb, contain organic/natural ingredients, and have low alcoholic content.

The RTD sector is now bigger in volume than the total spirits category in the US, and is expected to overtake wine.

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RTD Alcoholic Beverages Market – Global Industry Trends and Forecast to 2027 | Data Bridge Market Research

Ready To Drink Cocktails Market Size Report, 2021-2028 (grandviewresearch.com)

RTDs to outperform alcohol market by 2025 – The Spirits Business


About Kramer Beverage 

Kramer Beverage is South Jersey’s largest beer wholesaler, owned and operated by four generations of the Kramer family since 1924. Kramer Beverage is based out of Hammonton, Atlantic County, and services eight counties in southern New Jersey with top brands from MolsonCoors, Constellation, Yuengling, Boston Beer, Heineken USA, Pabst, Diageo, FIFCO, and more. Kramer Beverage also distributes a wide variety of craft beers, from suppliers such as New Belgium and Sierra Nevada, to local favorites including Flying Fish, Double Nickel, Evil Genius, Glasstown, and 2SP. For more information on Kramer Beverage, please visit www.kramerbev.com.

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