The growth has slowed down however, as the IWSR predicted last year that the category would grow by 24% in volume from 2022 to 2026.

“The premiumisation trend is moving in a variety of directions, from premium formats to a shift in ingredients and added functionality – all aspects that offer a point of differentiation to consumers,” says Susie Goldspink, head of RTD insights, IWSR.

The report found that growth will be driven by cocktails and long drinks, along with products that sit in the premium-and-above price bracket, marking this slowdown from previous years due to declines in hard seltzers in the US. 

“Although the pace of innovation has slowed, the effectiveness of new launches has improved, as producers are more strategic and targeted in their product launches,” adds Goldspink.

The report analyses trends in 10 markets: Australia, Brazil, Canada, China, Germany, Japan, Mexico, South Africa, the UK and the US, accounting for 83% of global RTD consumption with a total value of US$33.9bn in 2022.

Across the 10 key markets, growth expectations for RTDs have halved over the past year to a forecast volume compound annual growth rate (CAGR) of 2%, between 2022 and 2027. Excluding hard seltzers, RTD volumes will grow at a CAGR of 5%, 2022 to 2027.