Ready-to-drink cocktails outpace traditional alcohol categories

While categories such as beer, cider, wine and traditional spirits have shown limited expansion since 2020, FABs recorded compound annual growth rates of 9 percent by value and 5 percent by volume between 2020 and 2025.

GlobalData forecasts that this momentum will continue through 2029, with FABs expected to outpace most other alcohol categories. Pre-mixed spirits, a subcategory that includes ready-to-drink (RTD) cocktails, are projected to be among the strongest performers, with forecast compound annual growth rates of 5.2 percent by volume and 7.7 percent by value from 2025 to 2029. Only non-alcoholic spirits are expected to grow faster.

Younger consumers drive demand for innovation and sustainability

The growth reflects shifting consumer preferences, particularly among younger drinkers. GlobalData consumer surveys indicate that convenience is a key factor influencing purchasing decisions, with more than four in five respondents rating it as essential or desirable. RTD spirit mixes meet this demand by offering cocktail-style flavours in portable, ready-to-consume formats that require no preparation.

Innovation and experimentation are also playing a central role. Nearly 60 percent of consumers surveyed said uniqueness or novelty was important when choosing products, while younger age groups were especially likely to prefer unusual or trendy alcohol flavours. This has encouraged producers to expand flavour ranges beyond traditional profiles and experiment with seasonal or limited-edition offerings.

These dynamics have prompted major beverage companies to look beyond beer and traditional spirits for growth opportunities. Japanese brewer Asahi recently announced the U.S. rollout of its Zeitaku Shibori canned vodka cocktails, highlighting how brewers are using RTD products to diversify their portfolios and tap into adjacent categories.

Other brands have focused on novelty-driven appeal. Sazerac-owned BuzzBallz, for example, has targeted experimental consumers with unconventional flavours and playful packaging, while Funkin Cocktails has expanded its RTD range with dessert-inspired and fruit-forward profiles designed to replicate bar-style drinks at home or on the go.

Sustainability is also shaping product development. While metal cans dominate pre-mixed spirits packaging due to their convenience and recyclability, consumer attitudes toward sustainability are mixed. GlobalData surveys show that nearly three-quarters of consumers consider environmentally friendly packaging important, yet a significant share question the sustainability of metal packaging or accept it only where alternatives are unavailable. This has opened opportunities for innovation in alternative materials, with some producers exploring lighter or paper-based packaging solutions.

According to GlobalData, brands that successfully combine convenience, flavour innovation and credible sustainability strategies are likely to be best positioned for growth. As competition intensifies within the RTD space, differentiation through packaging, flavour and brand identity is expected to play an increasingly important role in attracting younger consumers and sustaining long-term demand.