The world of alcoholic beverages is slowly undergoing change – it is doing so with a twist of convenience, a splash of flavor, and a whole lot of personality. While traditional spirits and cocktails are not going anywhere anytime soon, there’s a different category – the ready-to-drink (RTD) revolution that’s marrying great flavors with convenience. From canned cocktails to seltzers and pre-mixed cocktails, the RTD category is winning the hearts of Gen Z, one sip at a time.
Gone are the days when alcohol consumption was only about bar hopping or mixing craft cocktails. Today, it is about ease, convenience, and identity – and the RTD segment delivers on all three segments.
While millennials popularized wine culture and craft beers, Gen Z is rewriting the rules with RTD beverages. This generation has significantly different drinking habits than millennials and Gen X. The RTD sector encompasses a diverse range of products, from hard seltzers to canned wine and RTD cocktails and more.
This was the only major category in the global beverage alcohol market to record volume growth in 2023, with a 2% increase in volume and a 6% rise in value, according to beverage market research firm IWSR.
In 1859, Andrew Heublein opened a hotel in Hartford, Connecticut, which he later passed on to his sons. They eventually offered bottled cocktails so guests could take them home, and these were later sold nationwide and renamed Club Cocktails. Demand remained steady at the turn of the century because most people still viewed mixing their own drinks as a task best left to bartenders.
The origins of RTD cocktails and beverages can be traced back to the 1850s, when Andrew Heublein opened a hotel in Hartford, Connecticut, United States. His sons, after taking over the reins of the hotel, began offering guests bottled cocktails so they could take them home. Eventually, they were sold nationwide and renamed Club Cocktails. At the turn of the century, demand remained steady but most preferred their drinks served at bars rather than cans and bottles.
RTD beverages went through a transformative evolution between the 1970s and 2010s. It was in 2016 that RTD beverages really started emerging as a category with the introduction of the ‘White Claw’ line of seltzers. Their impact in the ready-to-drink category cemented them as one of the most successful and reputed brands. They were affordable, experimental, and convenient, three major reasons why the brand products took off in the first place.
If millennials popularized craft beer and wine, Gen Z made RTD beverages the next big drinking experience. Studies and sales figures show that Gen Z tends to drink less than previous generations – but when they do, they want it to be intentional and meaningful.
They’re looking for drinks that are easy to consume and low in alcohol, and are also focused on sustainable, moral, and ethical best practices.
RTDs, with their lightweight and convenient grab-and-go format, are winning Gen Z hearts. They’re easy to pop open, require no shaking or stirring, and are perfect for almost any occasion. According to data from Mintel, RTD spirit-based cocktails had a 226% increase in volume sales from 2016 to 2021. This makes this category one of the fastest-growing categories in the alcoholic beverage segments during 2016-2021.
Also Read: Top Non-Alcoholic Beers to Enjoy This Festive Season (Without the Hangover!)
Gen Z does not feel the need to show off their alcohol consumption or follow into the peer pressure of social drinking. It’s not just about alcohol anymore – it’s about choice. Gen Z is the most ‘sober curious’ generation to date. Many are opting for low-alcohol options or completely opting out of alcohol.
This shift doesn’t imply that they are completely ditching the party – they’re redefining it. RTDs offer not just alcoholic beverages but also non-alcoholic options, making it convenient even for those who do not consume alcohol. Think sparkling coolers, fruit-based beverages, spritzers, and more. Gen Z is experimenting with their alcohol consumption and mostly keeping it in check.
For younger consumers, price is not secondary – it is a defining factor in their drinking choices. They are highly unlikely to spend thousands on expensive and imported wine – instead Gen Z would likely spend on a product that’s affordable yet good-quality. RTDs offer an affordable gateway to premium experiences. Instead of spending hundreds at a bar for cocktails, Gen Z can grab a chilled, bar-quality drink at a fraction of the cost.
With the availability at convenience stores and supermarkets, RTDs have become even more accessible to a younger audience. They require no elaborate ingredients, no manual labour, and there’s hardly any wastage. For a generation that values effortless access, that’s a huge win.
Also Read: The Essential Bottles Every Beginner Home Bartender Must Own
While the factors of convenience, accessibility, and affordability definitely impact the rise of RTDs, one major factor that will guarantee this category’s continual rise is the scope of personalization.
Brands are now experimenting with newer, more innovative flavors, playing with ingredients, quirky partnerships, and concocting drinks that are more than just that. They’re infused with essential nutrients, devoid of sugar, preservatives, and harmful colorings, and botanical mixers.
If there’s one thing that Gen Z swears by, it is personalization. In a world where collective ‘herd’ identity is the norm, the Gen Z wants an escape – the kind where they can express their individuality. And innovations like personalized drinks enable them to do so.
With personalized flavors, certain added flavors, wellness-focused formulations, and AI-trained algorithms that recommend what you crave for, RTDs are becoming a creative playground for the new generation.
Ready-to-drink beverages are not just a fleeting trend – they’re the future of drinking. They symbolize a cultural shift that was earlier demarcated by expensive wines, peer-pressure-induced social gatherings, and a drinking culture focused around frequent celebration. Gen Z has not outrightly dismissed this culture – but is shaping its way around it. It is prioritizing conscious consumption, more toned-down celebration, and a drinking culture that is more personalized and focused on thoughtful consumption.
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