Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US volume sales and forecast of flavored malt beverages, 2015-23
- Figure 2: Total US volume sales and forecast of spirits-based prepared cocktails, 2015-23
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- Figure 3: Total US volume sales and forecast of wine coolers, 2015-23
- Impact of COVID-19 on RTD alcoholic beverages
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- Figure 4: Short-, medium- and long-term impact of COVID-19 on RTD alcoholic beverages, December 2020
- Opportunities and challenges
- Reemergence
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- Figure 5: Perception of RTD alcoholic beverages launches versus all alcohol launches, January 2019-November 2020
- Pandemic habit changes point to opportunities for RTDs
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- Figure 6: Reasons for drinking less alcohol, July 2020
- Drinkers want to make “healthy” choices
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- Figure 7: Alcohol statements – Health – Any agree, by alcohol type consumed – Any drink, September 2020
- Recovery
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- Figure 8: Top three RTD alcoholic beverages launches perceived as healthy, January 2019-November 2020
- RTDs can be the playground for functional alcohol
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- Figure 9: RTD alcoholic beverage consumption – Any drink, 2018-20
- RTD drinkers are becoming more discerning
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- Figure 10: Important factors in RTD Alcoholic beverage choice, September 2018 and September 2020
The Market – Key Takeaways
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- FMBs drive category sales and growth
- RTDs avoid flight seen in other alcohol categories
- RTDs spared from on-premise declines, challenged by physical distance
- A focus on quality can attract and retain consumers
- Category should prepare for return to on-premise drinking
Market Size and Forecast
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- Volume sales of FMBs projected to double from 2020-23
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- Figure 11: Total US volume sales and forecast of flavored malt beverages, 2015-23
- Figure 12: Total US volume sales and forecast of flavored malt beverages, 2015-23
- Prepared spirits-based cocktails continue their steady climb
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- Figure 13: Total US volume sales and forecast of spirits-based prepared cocktails, 2015-23
- Figure 14: Total US volume sales and forecast of spirits-based prepared cocktails, 2015-23
- Wine cooler declines slowing
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- Figure 15: Total US volume sales and forecast of wine coolers, 2015-23
- Figure 16: Total US volume sales and forecast of wine coolers, 2015-23
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- Figure 17: RTD alcoholic beverage launches, by launch type, December 2019-November 2020
Market Factors
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- RTDs immune to alcohol declines, for now
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- Figure 18: Alcohol consumption, 2017-20
- RTDs outperform all alcohol launches; can secure value by proving worth
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- Figure 19: Perception of RTD alcoholic beverages launches versus all alcohol launches, January 2019-November 2020
- Figure 20: Expected US unemployment, 2019-25
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- Figure 21: Impact of COVID-19 on alcohol consumption, by HH income, July 2020
- Quest for health continues, drinkers want to feel good about their choices
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- Figure 22: Alcohol statements – Health – Any agree, by alcohol type consumed – Any drink, September 2020
- Youngest drinkers exhibit strongest flight; engage through experience
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- Figure 23: Change in instance of alcohol consumption, 2017-20
- The expansion of cannabis legalization challenges alcohol
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- Figure 24: Substances consumed or used – Marijuana/cannabis (any format), October 2019
- Pandemic-related stress boosted drinking among some
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- Figure 25: Impact of COVID-19 on alcohol consumption, July 2020
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- Figure 26: Reasons for drinking more alcohol, July 2020
- RTDs can provide a much-needed mood boost during tough times
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- Figure 27: Alcohol motivations, by RTD alcoholic beverages consumption, July 2020
- RTDs can find opportunity in pandemic habit changes
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- Figure 28: Reasons for drinking less alcohol, July 2020
- COVID-19 increased drinking alone, on weeknights and via delivery
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- Figure 29: Impact of COVID-19 on alcohol behavior, by RTD alcoholic beverages drinkers, July 2020
Market Opportunities
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- The category is in need of community
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- Figure 30: Alcohol statements – Alcohol – Any agree, by alcohol type consumed – Any drink, September 2020
- RTDs can be the playground for functional alcohol
- Nurture exploration and loyalty through delivery and subscriptions
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- Figure 31: Alcohol purchase location, by RTD alcoholic beverages consumption, July 2020
- Be ready to strike on-prem
Companies and Brands – Key Takeaways
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- Large brands caught flat-footed in the seltzer craze find their ground
- Lows and nos may not equate to BFY
- Flavor innovation moving in the right direction
Competitive Strategies
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- Big brands continue to play catch-up, each brings its own twist
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- Figure 32: Corona Hard Seltzer Glass, December 7, 2020
- Figure 33: The Sacrifice, October 6, 2020
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- Figure 34: Top three RTD alcoholic beverages launches perceived as quality, January 2019-November 2020
- Figure 35: Top three RTD alcoholic beverages launches perceived as premium, January 2019-November 2020
- Seltzer drinkers support small brands
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- Figure 36: Alcohol statements – Brand – Any agree, by alcohol type consumed – Any drink, September 2020
- Seltzer brands go hard
- Leading lime gives way to wider array of flavors
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- Figure 37: RTD alcoholic beverage launches, by leading flavors, 2018-20*
- Figure 38: RTD alcoholic beverage launches, by fastest growing flavors, 2018-20*
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- Figure 39: Interest in alcoholic beverage flavors – Any interest (net), May 2020
- Flavor variety contributes to perception of tasty
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- Figure 40: Top three RTD alcoholic beverages launches perceived as tasty, January 2019-November 2020
- Health-focused flavors and organic positioning boost health perception
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- Figure 41: Top three RTD alcoholic beverages launches perceived as healthy, January 2019-November 2020
- Seltzers excel at natural perception
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- Figure 42: Top three RTD alcoholic beverages launches perceived as natural, January 2019-November 2020
- It doesn’t need to be a race to the bottom, but you have to show effort
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- Figure 43: RTD alcoholic beverage launches, by average calories, 2018-20*
- Figure 44: RTD alcoholic beverage launches, by average sugar, 2018-20*
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- Figure 45: RTD alcoholic beverage launches, by leading claims, 2018-20*
- Seasonality can extend RTD relevance throughout the year
- Cans continue to grow share, underperform bottles on taste perception
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- Figure 46: Perception of canned RTD alcoholic beverages launches versus bottled RTD alcoholic beverages launches, January 2019-November 2020
- Figure 47: RTD alcoholic beverage launches, by pack type, 2018-20*
The Consumer – Key Takeaways
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- RTDs increase penetration, led by growth in seltzer consumption
- Flavor innovation key to category success
- Convenience is a strong draw, health gaining importance
- Social nature of RTDs requires creativity during health pandemic
- Health serves as more of a barrier than a draw
RTD Alcoholic Beverage Consumption
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- Seltzers drive RTD consumption increase; tea predictions are coming true
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- Figure 48: RTD alcoholic beverage consumption – Any drink, 2018-20
- Wine-based drinks find strongest appeal among women, gaining men
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- Figure 49: RTD alcoholic beverage consumption – Any drink, by gender, September 2020
- Nearly three quarters of 25-34s drink RTDs, consumer base getting older
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- Figure 50: RTD alcoholic beverage consumption – Any drink, by age, September 2020
- Quality boost could retain younger drinkers
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- Figure 51: Change in share of RTD alcoholic beverage consumption – Any drink, by age, September 2019-September 2020
- Seltzer consumption skews toward higher earners; important to prove worth
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- Figure 52: Share of RTD alcoholic beverage consumption – Any drink, by HH income, September 2020
- Sparkling wine and white spirits are stronger competitive targets than beer
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- Figure 53: RTD alcoholic beverage consumption – Any drink, by alcohol type consumed – Any drink, September 2020
Change in RTD Alcoholic Beverage Consumption
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- 35% of RTD drinkers have increased consumption in the past year
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- Figure 54: Change in RTD alcoholic beverage consumption, September 2020
- The category boosts engagement among men
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- Figure 55: Change in RTD alcoholic beverage consumption, by gender, September 2020
- RTDs gain strength among 35-44s
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- Figure 56: Change in RTD alcoholic beverage consumption, by age, September 2020
- Flavor innovation has driven consumption increase
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- Figure 57: Reasons for drinking more RTD alcoholic beverages, September 2020
- Sugar vigilance is one means of preventing flight, but more can be done
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- Figure 58: Reasons for drinking fewer RTD alcoholic beverages, September 2020
Reasons for Choosing RTD Alcoholic Beverages
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- Health lags behind reasons for choosing RTDs, but grows importance
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- Figure 59: Reasons for choosing RTD Alcoholic beverages, September 2020
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- Figure 60: Reasons for choosing RTD Alcoholic beverages, September 2018 and September 2020
- Portability wins seltzer drinkers
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- Figure 61: Reasons for choosing RTD Alcoholic beverages, by alcohol type consumed – Any drink, September 2020
- Women are drawn to convenience, men like RTDs for what they are
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- Figure 62: Reasons for choosing RTD Alcoholic beverages, by gender, September 2020
- Occasional convenience has best chance of gaining older drinkers
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- Figure 63: Reasons for choosing RTD Alcoholic beverages, by age, September 2020
RTD Alcoholic Beverage Consumption Occasions
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- Brands need to improve small scale and solo RTD occasions
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- Figure 64: Correspondence analysis – Symmetrical map – Alcohol consumption by occasion, September 2020
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- Figure 65: Alcohol consumption by occasion, September 2020
- RTD consumption is a social occasion for women
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- Figure 66: Alcohol consumption by occasion – Any RTD*, by gender, September 2020
Important Factors in RTD Alcoholic Beverage Choice
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- Flavor plays an outsized role for RTD drinkers
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- Figure 67: Alcohol statements – Choice – Any agree, by alcohol type consumed – Any drink, September 2020
- RTD drinkers are becoming more discerning
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- Figure 68: Important factors in RTD Alcoholic beverage choice, September 2020
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- Figure 69: Important factors in RTD alcoholic beverage choice, September 2018 and September 2020
- Flavor is key for women
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- Figure 70: Important factors in RTD alcoholic beverage choice, by gender, September 2020
- 22-34s are just as likely to be looking at total calories as they are brand
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- Figure 71: Important factors in RTD Alcoholic beverage choice, by age, September 2020
- Low calories outweighs low price among seltzers drinkers
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- Figure 72: Important factors in RTD Alcoholic beverage choice, by alcohol type consumed – Any drink, September 2020
Barriers to RTD Alcoholic Beverage Consumption
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- Sugar and quality control can boost engagement
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- Figure 73: Barriers to RTD alcoholic beverage consumption, September 2020
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- Figure 74: Barriers to RTD alcoholic beverage consumption, by RTD alcoholic beverage consumption, September 2020
- Health improvements will engage reliable drinkers, with spillover benefits
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- Figure 75: Barriers to RTD alcoholic beverage consumption, by age, September 2020
- Men are less likely to see themselves in the category
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- Figure 76: Barriers to RTD alcoholic beverage consumption, by gender, September 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Correspondence analysis methodology
- Abbreviations and terms
- Abbreviations
Appendix – Companies and Brands
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- Figure 77: Multi-outlet sales of beer (including flavored malt beverages)*, by leading companies and brands, rolling 52 weeks 2019 and 2020
- Figure 78: Multi-outlet sales of premixed cocktails/coolers, by leading companies and brands, rolling 52 weeks 2019 and 2020
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