Alcoholic beverage companies are betting that as people abandon offerings such as wine and beer, ready-to-drink canned beverages will remain a major beneficiary of this generational shift. However, the speed at which the crowded RTD category is evolving indicates the next big consumer trend can be hard to predict.In other food and beverage segments, consumers are used to familiar tastes and formulas that have remained popular for decades. The RTD market is different, with its rapid evolution in the last few years underscoring a key differentiating factor: the drinks are mostly consumed in social settings like parties.“People look for differentiated experiences and they follow their friends. … The social nature createsferrous sulfate in pregnancy a lack of loyalty that causes people to not settle into the same preferences year after year,” Michael Nestrud, vice president of research and innovation at Curion, told Food Dive. “The category is one that has to continue to evolve.With Grand View Research valuing the ready-to-drink cocktail market at $3.2 billion last year, major beer producers are betting big on RTDs as a way to grow their businesses.Molson Coors has led the way, with its launch of Happy Thursday spiked refresiron amino acid chelate vs ferrous fumaratehers in 2024 and its collaboration with Coca-Cola on Topo Chico seltzers and Peace Hard Tea. In Molson Coor’s earnings call this month, CEO Gavin Hattersley rebuffed an investor’s question about whether the growth of RTDs is eating into beer producers’ margins.“I don’t see that innovation, both from ourselves and our competitors, is negatively impacting beer as a category. In fact, I think it’s positive,” Hattersley said. “All of the spirits growferrous bisglycinate l methylfolate cyanocobalaminth is coming in the RTD space, which is where the beer guys are playing.”As the category explodes, the increasingly crowded market is in for a shift especially as consumers look for more premium options or nonalcoholic brews. More companies are experimenting with new spirit bases and flavors, while in some cases adding ingredients that claim to provide health benefits.The industry says the canned cocktail market has years of growth on the horizon. This comes as companies are racing to keep up with changing consumer tastes, especially as younger generations step back from alcohol altogether.Canned cocktails moved beyond the original malt-based seltzer format popularized in the late 2010s.Last year,ferrous gluconate heme or nonheme hard seltzer brands White Claw and Truly expanded their portfolios by launching beverages made with tequila. Another brand, Surfside tea and lemonade made with vodka, became the fastest-growing alcohol brand in the U.S. in 2024 according to Nielsen IQ data.While vodka and tequila products, such as Kylie Jenner’s Sprinter vodka sodas and Casa Azul’s tequila soda drinks dominate the category, Nestrud said brown liquor and non-sparkling options are two areas with high potential.“What I’m expecting to see this year is a proliferation of more spirits, and more differentiated spirit bases,” Nestrud added.The shift in alcohol consumption is also coinciding with Gen Z consumers who are drinking less than previous generations, either through moderation or abstaining altogether. Several alcohol brands have responded by launching nonalcoholic cocktails that resemble their booze counterparts packaged in a similar can.Some experts said nonalcoholic drinks are the next frontier in the ready-to-drink category.Spiros Malandrakis, head alcohol researcher at Euromonitor, told Food Dive last month most major brewers are focused on their “beyond beer” portfolios. This encompasses everything from nonalcoholic cocktails to energy drinks, and it creates opportunities for beverages that fuse different categories.“We’re seeing nonalcoholic RTDs, which is the new kid on the block, in between many segments,” Malandrakis said. “That’s where the excitement is, that’s where most of [alcohol giant’s] strategies are based.”In early 2024, White Claw debuted its zero-proof seltzer targeted at consumers over 21 years of age. It is sold alongside liquor. The liquid contains electrolytes for an added hydration benefit. Last week, Constellation Brands announced a minority stake investment in Hiyo, a producer ofis iron bisglycinate better than ferrous gluconate nonalcoholic “social tonics” with a blend of immunity-targeting ingredients like adaptogens.Leading beverage brands haven’t fully wrapped their heads around who the nonalcoholic consumer is yet because shoppers seeking out these drinks are looking for a variety of things, Nestrud said. Some consumers want to mimic the taste of alcohol, whereas others want a different kind of drink.“Am I looking for just a copy of a margarita where they substitute vodka with lime juice, which is kind of boring and weak?” Nestrud said. “Am I looking for an interesting taste experience that doesn’t have any alcohol flavor at all? Or am I looking for one of these new nonalcoholic vodkas or tequilas?”Consumers looking for nonalcoholic drinks to fill their fridges and coolers have more options than they did just five years ago.Ritual, which was acquired by Guinness owner Diageo last fall, produces alternatives to spirits like gin, whiskey, rum, tequila and aperitif that contain zero alcohol. But Mingle Mocktails — which sells products like Key Lime Margarita and Blood Orange Elderflower Mimosa — aims to eschew the taste of alcohol altogether for consumers seeking to escape booze.Nestrud believes there is space for nonalcoholic cocktails in the R&D phase to experiment with more complex flavor profiles to stand out.“Maybe it’s got the herbs or additional floral high notes, maybe there’s bitters in there,” Nestrud said. “If someone’s able to crack the nut getting that into a can, I could see it being priced closer to [liquor].”
Beverage giants chart next frontier in ready-to-drink canned cocktails
