RTD Alcoholic Drinks Reach 3.5% Market Share Globally, Driven by 12% Growth in Brazil and South Africa

Ready-to-drink (RTD) alcoholic beverages are showing resilience and growth in a global beverage alcohol market facing significant challenges. According to the IWSR’s RTDs Strategic Study 2025, RTD volumes in ten of the world’s leading markets grew by 2% in 2024, with value increasing by 4%. These ten countries—Australia, Brazil, Canada, China, Germany, Japan, Mexico, South Africa, the United Kingdom, and the United States—represent 82% of global RTD volumes. The category now holds a 3.5% share of total beverage alcohol (TBA) servings in these markets, up from just 1.1% a decade ago.

While overall growth has slowed compared to previous years, RTDs continue to outperform total beverage alcohol in eight out of these ten markets. Only China and Australia have seen declines in both RTDs and broader alcohol consumption due to structural issues. South Africa and Brazil emerged as growth leaders in 2024, each posting a 12% increase in RTD volumes. South Africa’s rapid expansion moved it from fifth to third place among the top ten markets for RTDs. In contrast, China saw a 14% decline and Australia a 6% drop in RTD volumes last year. The United States, the largest market for RTDs, recorded a modest 1% increase.

Susie Goldspink, Head of RTD Insights at IWSR, describes RTDs as “the beacon of hope” for the industry. She points out that the most promising opportunities are found in established markets where RTDs already account for more than 5% of TBA volume share. Despite slower recent growth rates, she expects RTDs to continue gaining ground in the U.S., Canada, and Japan—markets with diverse product offerings and strong consumer engagement.

IWSR forecasts that by 2029, RTDs will reach a 4% share of TBA servings across these key markets, up from 2% in 2019. The U.S., Canada, Australia, and Japan already have particularly high shares: 8%, 8%, 9%, and 13%, respectively. Future volume gains are expected to be concentrated in these established markets plus Brazil. Projected compound annual growth rates (CAGR) for 2024-2029 are +1% for the U.S., +3% for South Africa and Japan, and +7% for Brazil.

However, Goldspink cautions that broader market factors could limit further expansion in some regions. In Australia, the UK, and Germany—where growth is slower—RTDs are relatively expensive and less frequently consumed by an aging population. These factors may restrict future gains despite current momentum.

The study also highlights that recent growth is driven more by increased consumption frequency among existing drinkers than by new consumer recruitment. Only about 5% of RTD drinkers were new to the category in 2024, mostly younger adults reaching legal drinking age. Gen Z consumers are now driving higher consumption frequency across all RTD categories. Among those who drink RTDs, more than half of Gen Zs and Millennials consume them at least once a week or more often; this compares to lower rates among Gen X and Boomers.

Flavor remains the most important factor influencing purchase decisions across all age groups. Price is also significant but matters more to older consumers. Younger buyers are increasingly swayed by health-related claims and packaging design. Citrus flavors—especially lemon—remain popular, but there is growing interest in tropical and strawberry flavors as producers diversify their offerings.

Alcohol content is becoming a more important consideration for consumers as well. Buyers are seeking both higher- and lower-alcohol options depending on occasion and preference. This trend is prompting producers to move away from mid-range ABV products and offer a wider range of strengths.

RTDs are also impacting other beverage categories. Since 2019, beer’s loss of servings to RTDs has slowed while wine’s decline has accelerated across most major markets except Australia and Germany. The distinction between canned wine and RTDs is becoming less clear as both categories often share shelf space and similar branding strategies.

Distribution channels for RTDs are diversifying as well. The on-trade (bars and restaurants), on-the-go retail outlets, and ecommerce platforms are all seeing increased sales of ready-to-drink products. In Brazil and South Africa, on-trade accounts for a significant share of category volumes—37% and 30%, respectively—while across all ten key markets it rose from an 8% share in 2021 to 12% in 2024.

Brand extensions into the RTD space are generally viewed positively by consumers according to IWSR research conducted in several major markets including the U.S., Canada, UK, Germany, Japan, Mexico, and Australia. These extensions can boost purchasing intent but may also risk diluting premium brand images if not managed carefully.

As global beverage alcohol producers look for growth amid challenging conditions, the continued expansion of the RTD category offers both opportunities and risks. Success will depend on understanding shifting consumer preferences—especially among younger adults—and adapting product offerings and marketing strategies accordingly.