Premium cocktails are driving growth within the RTD sector and producers are being advised to focus on investment “where momentum is building”.
According to findings published in IWSR’s RTDs Strategic Study 2026 USA, RTD volumes in the US are stabilising after what it describes as strong post pandemic growth.
The data intelligence firm said it expected the sector to return to growth by 2030, boosted by cocktails and hard teas, which are taking share from hard seltzers and Flavoured alcoholic beverages (FABs).
While hard seltzers and FABs have seen volumes shrink, RTD cocktails enjoyed a strong year in 2025 as volumes surged by +17%, with the broader cocktails and long drinks segment expected to expand at a CAGR of +9% to 2030.
Hard tea volumes, it said grew by +5% in 2025, with IWSR forecasting CAGR growth of +5% to 2030.
Susie Goldspink, IWSR head of RTD insights, explained: “With cocktail, hard seltzer and FAB volumes converging by 2030, investment should be prioritised where momentum is building, rather than on defending legacy share,” she says. “Consumers have shown a willingness to spend more for premium products they like.”
According to the business, cocktails and long drinks represent the category’s enduring NPD priority.
Although here innovation is becoming less significant: while spirit-based cocktail/long drink volumes surged by +53% in 2025, only 2% of this growth was attributable to newly launched products, indicating that gains are coming from brands that are already on the shelves.
However at the same time, appetite for premium cocktails can help to offset declines for legacy products. Whisky RTD volumes fell by -11% in 2025, but the whisky sour RTD cocktail grew by more than 1,500% and now accounts for 66% of all whisky RTD volumes.
“This is evidence of real demand for premium cocktails, even when legacy product volumes are declining,” added Goldspink.
“Whisky RTDs have a forecast CAGR of +1%, but will essentially be flat. It is an RTD base where legacy product contraction masks significant premium cocktail demand.”
