Ready-to-Drink Cocktails Just Surpassed Vodka in Global Value — But What’s Next?

(Photo: High Noon)

Ready-to-drink beverages outgrew the global market value of vodka in 2025, according to a recently released report from the International Wine and Spirits Record. It represents a breakthrough moment for a category that was all but unknown as little as a decade ago — though data suggests that not all brands are sharing the spoils equally.

Per the report, RTD volumes grew by 3% throughout last year, while all other major categories (whiskey, tequila, vodka and more) witnessed marginal or substantial declines. Narrowing in on the numbers, researchers found that sales within the RTD category have split in two directions. The data suggests that global malt-based RTD consumption dropped by 5%, while spirits-based RTD volumes grew by 7%.

In other words, people are trading hard seltzers for vodka seltzers, and Bud Light-branded Lima-A-Ritas for bona fide cocktails made with real tequila. The shift fits within a broader push toward premiumization as consumers seek out better ingredients and lower calorie counts (or at least, drinks that seem to have some combination of the above).

Luke Tegner, global head of consulting at IWSR, says that it’s all about the context of the occasion.

“It’s important to understand what job a particular RTD is doing better than a beer, wine, spirit, cocktail or, indeed, rival RTD,” Tegner remarked. “A spirit-based canned cocktail might win by making the creation of bar-quality serves effortless. A lower-ABV spritz might be ideal for stretching a relaxed afternoon occasion. A higher-ABV RTD might appeal when consumers are looking for intensity and flavour  – a buzz.”

According to IWSR, vodka-based RTDs continue to be the reigning champion across most age groups. Gen Z buyers reportedly prefer tequila, while Millennials favor whisky, naturally fermented bases, brandy and mezcal.

Another trend of note is the so-called “form factor” RTD — creatively packaged drinks like BuzzBallz, BeatBox and Big Sipz that have become enormously popular with younger generations over the past few years. Though it’s still too early to tell where the category is going from here, it’s telling that BuzzBallz recently became one of the best-selling RTDs in the country by a significant margin.

“This opportunity is simply too big to ignore. Within this picture of overall growth, however, there is nuance. Spirits-based RTDs are continuing to grow, while malt-based products are in decline,” Tegner added.

“At the same time, innovation is slowing as brand owners focus more selectively on spirit-based variants, premium-plus price tiers and higher-ABV RTDs. A successful launch therefore needs more than a can, a flavour and distribution. It needs to define a clear role in the target consumer’s drinks repertoire.”