With RTDs moving towards premiumisation, Lizzy O’Riordan explores the impact on spirits sales and looks at the top flavours trending with consumers this year

As alcohol categories such as spirits and wine stagnate or decline, ready-to-drink (RTD) options are expected to see solid growth throughout 2025. Rob Hallworth, senior client insight partner for beer, wine and spirits at NIQ, says: “The RTD category reached sales of £600 million in 2024 (+7.4%), increasing value share of the off-trade market from 2.5% to 2.7%.”

PREMIUMISATION

Hallworth notes that this growth is being driven by premiumisation, pointing to brands such as Funkin and Moth, which have gained market share in the category.

Rob Wallis, co-founder of Moth, confirms: “The biggest trend we’re seeing within the category is premiumisation. In 2024, single cans added a staggering £51 million in value to the RTD category.”

The RTD Canned Cocktail Report from Global Brands also found that consumers are willing to spend more if they believe a product offers “a superior quality or unique experience”.

Clark McIlroy, managing director of Red Star Brands, adds: “The momentum is shifting towards bar-strength propositions in single-serve cans.”

THE SPIRITS MARKET

According to IWSR, RTD growth may come at the expense of other alcohol categories, particularly spirits. The insight company states: “RTD consumption is impacting other categories, so companies need to join or invest in the RTD market in order to combat this.”

During the cost of living crisis, consumers may be less inclined to spend on premium spirits, but RTDs provide an affordable way to trade up.

As the Moth Insights 2025 report puts it: “RTDs allow consumers to trade up economically.”

This trend is clearest in the off-trade, though it could extend into the on-trade as more bars and pubs stock RTDs – a shift we may see as venues seek convenience under staff shortage pressures and rising operating costs.

FLAVOUR

Which RTD flavours are consumers most interested in? According to IWSR, malt-based RTDs continue to decline while spirit and wine-based RTDs are seeing growth.

Sarah Holland, RTD buyer for Waitrose, reveals that the retailer has launched 27 new RTD lines in the past year, with tequila, vodka and rum emerging as the most popular spirits.

On emerging flavours, Holland says: “We’ve had great success from newer additions like Palomas, Piña Coladas, and Long Island Iced Teas.”

Wallis echoes this, mentioning the success of tequila-based RTDs: “The most popular cocktail in our range is the Moth Margarita.” The brand has also just launched a variation of the bestseller with the Spicy Margarita.

“We are also seeing growing success with our Paloma, a grapefruit soda and tequila serve.”

The tequila trend is further evidenced by the launch of a Margarita RTD in Marks & Spencer in 2024.

With that said, sweet flavours remain a consumer favourite. Citing NIQ data, Wallis emphasises: “The Passion Fruit Martini is the UK’s top-performing cocktail in both the on and off-trade.”

Similarly, the Global Brands report identified fruity options such as the Passion Fruit Martini and Piña Colada as core flavours driving value and volume.

Whether it’s classic sweet serves or citrus-based cocktails, 2025 looks set to be another strong year for RTDs