Ready-to-drink and smaller-format bottle sales have been riding a wave of growth during the last few years. And while new data from IWSR suggests that growth is beginning to slow down a bit, it’s predicted the RTD category will continue to expand its share of total beverage alcohol (TBA) in the coming years. In fact, volume growth is expected in all of its top 10 markets, though the innovation we’ve seen in the last few years will cool as new product launches pump the brakes.
Let’s look at the big benefits petite bottles can bring to your business and your customers.
Growth-driven sales
According to the RTDs Strategic Study 2024 by ISWR, RTD volumes in the US grew by 2%, with flavored alcohol beverages (FABS) and cocktails/long drinks poised to be the biggest volume drivers in the next few years. This is a more modest level of growth after a period of double-digit gains for the category, but the outlook is still positive.
“Despite the slowdown in growth, RTDs are continuing to gain share of TBA – a trend that we expect to continue throughout the forecast period, and particularly in the more established markets of Japan, the US, Australia and Canada,” says Susie Goldspink, Head of RTD Insights, IWSR.
Spirits in the 50 ml and 350 ml sizes are seeing growth too, demonstrating the appeal of smaller sizes. According to NielsenIQ, tequila, vodka, cordials, and whiskey are the main drivers of growth within these small formats. And premium spirits in those smaller sizes are driving most of this growth, likely because they encourage trial and recruitment.
Easy does it
Convenience is a huge contributor to the popularity of smaller format bottles and RTDs. For outdoor events and other bring-your-own-beverage occasions, easy portability is a must. RTDs also allow consumers to enjoy cocktails without shopping for ingredients or having to clean up afterward. And when entertaining, RTDs are an easy and affordable way to make sure there’s something for everyone.
Great ways to experiment
Flavored alcoholic beverages are on the rise—and there’s no better way to explore all the options than with small formats and RTDs. Smaller sizes and more affordable price points allow customers to try different things and stock up on a variety of options to suit any mood or occasion.
Better-for-you trends
As more consumers approach drinking with an everything-in-moderation mindset, businesses can capitalize on this trend. Small formats and RTDs can satisfy the desire for moderate portions, low sugar, low alcohol, and quality ingredients.
Only the best will do
Premiumization is a growing trend with consumers who want more meaningful drinking experiences. To distinguish themselves in a crowded market, some RTD brands are using premium spirits as their base. Premium spirit brands are also turning to smaller formats which allow customers to enjoy high-end drinks at a lower cost than a 750 ml bottle. In fact, according to Numerator Insights, consumers will trade down in size to upgrade to something of a higher quality.
Purchasing with purpose
Supporting diverse-owned brands has gained increasing importance with many customers, especially Gen-Zers. Several diverse-owned brands offer small-format spirit bottles and RTDs. Availability often differs by region, so to find out which brands are found in your area, you can use the filters in the left navigation panel on Proof. While Black History, Hispanic Heritage, and other diverse-inspired celebrations are great times to support diverse-owned brands, promoting them makes good business sense all year round.
RTDs and small format bottles are enjoying a moment, and this category doesn’t seem to be slowing down anytime soon. With big benefits for businesses and consumers, they’re a true win-win.
