RTDs Reimagined

With the help of category experts, we explore how RTDs have evolved from convenience-led options into a premium, flavour-driven category, reshaping the on-trade through moderation trends, quality expectations and new commercial opportunities.

What was once shorthand for convenience is now increasingly associated with quality, consistency and commercial opportunity. Premiumisation, improved liquid standards and heavyweight investment have repositioned RTDs as serious contenders within the modern drinks landscape.

Moderation is no longer niche; it is mainstream and reshaping the drinks category at every level. As Rachel Weller, Commercial Leader at NIQ UK and Ireland, explains:

“More than half (54%) of UK consumers are moderating their alcohol intake, making moderation one of the most powerful behavioural shifts in today’s drinks market.”

Health sits at the centre of this change, even ahead of financial pressures. But moderation does not mean disengagement. Instead, consumers are drinking more intentionally — choosing fewer drinks, but better ones.

In the on-trade, this is playing out in nuanced ways. Footfall has rebounded strongly, yet alcohol volumes have not followed at the same pace.

“Consumers are buying fewer drinks overall… many are choosing to drink less but better, prioritising quality over quantity.”

Younger drinkers, in particular, are reshaping the landscape. “They are moderating differently reducing intake rather than abstaining completely,”

Importantly, they remain the most active and highest-spending group in the on-trade — reinforcing the need for offers that deliver both quality and relevance.

As alcohol consumption patterns shift, so too does spend. The beer, wine and spirits category is under pressure, while soft drinks — particularly premium, flavour-led and functional options — are expanding.

This creates both a challenge and an opportunity for operators. Understanding where spend is being reallocated is key to maintaining profitability.

Increasingly, RTDs are emerging as a bridge between categories. Rachel highlights their growing importance: “RTDs are bringing new consumers into BWS, accounting for £17.50 of every £100 in new product sales.” With a quarter of gains coming from soft drinks, their crossover appeal is clear.

This positions RTDs as an accessible, flavour-led entry point — one that encourages experimentation while fitting seamlessly into evolving drinking habits.

The RTD category has matured dramatically over the past five years. Early products were often convenience-led, but lacked the depth and balance expected from a well-made cocktail. Today, that narrative has shifted.

“The RTD category is no longer about convenience alone — it’s about delivering a bar-quality cocktail with the same flavour, balance and strength you’d expect behind the bar.”

Premium producers are now focused on authenticity — from classic recipes to higher-quality ingredients and bar-strength serves. Consumers, in turn, expect recognised cocktails such as Espresso Martinis or Margaritas to taste exactly as they would in a quality venue.

“Modern drinkers want convenience, but they are no longer willing to compromise on quality.”

Transparency around ingredients and ABV is becoming increasingly important, particularly among younger consumers.

RTDs are also well aligned with the moderation mindset now shaping the market.

“RTDs can absolutely support moderation. Many are formulated with lower alcohol by volume, which directly supports mindful consumption.”

Their fixed serve size also provides natural portion control, while clear labelling removes uncertainty.

“Unlike traditional spirits, RTDs typically display ABV clearly on the packaging. That removes the guesswork and helps consumers make more informed choices,”

In practice, this makes RTDs an effective tool for pacing consumption, whether consumers are alternating drinks or simply extending their occasion.

For operators, the RTD resurgence is not just about consumer demand, it also addresses real operational challenges.

Staffing shortages, training requirements and the need for speed of service continue to put pressure on venues. Delivering a consistent cocktail programme can be resource-intensive.

This is where RTDs come into their own. As Dhirendra explains, “Premium pre-batched cocktails are no longer seen as competition to bartenders — they are a practical complement to the back bar.”

The commercial advantages are clear.

“Faster service, consistent margins, minimal waste, and predictable quality in every serve,”

RTDs are particularly effective in high-volume environments — terraces, festivals, and outdoor spaces — where speed and consistency are critical.

“Our approach makes it possible for operators to serve a premium cocktail anywhere, with complete consistency.”

Flavour innovation is another key driver of growth — not just in RTDs, but across the wider drinks landscape.

“Soft drinks sales across the out-of-home channel were worth a whopping £7.6bn, showcasing a huge opportunity for operators to drive footfall and sales by having a wide range available to suit every customer and occasion.”

This appetite for variety and flavour is particularly strong among younger consumers, and RTDs are benefitting from the same trend. Fruity, flavour-forward variants are outperforming more traditional options, aligning with demand for more engaging and differentiated drinks.

RTDs sit within a broader, increasingly competitive landscape that includes no/low alcohol and functional drinks.

No/low continues to grow, but faces perception challenges.

“The key to success lies in offering alternatives that feel just as rewarding, special, and socially engaging as traditional alcoholic options.”

Functional drinks, meanwhile, are emerging as a disruptive force, aligned with consumer priorities around wellbeing and lifestyle.

In this context, RTDs occupy a valuable middle ground. They offer flavour, familiarity and flexibility — appealing to consumers who want to moderate without compromising on experience.

Momentum behind RTDs continues to build. Volumes in the on-trade are stable, with share gains in key channels and strong engagement from younger consumers.

The category’s appeal is broadening, supported by flavour innovation, premium positioning and evolving consumer needs.

“RTD is clearly reframing consumers’ approach to convenience, experimentation, and premiumisation.”

The drinks landscape is evolving rapidly. Consumers still want to socialise, indulge and explore — but they are doing so more deliberately.

RTDs are well positioned to meet these needs. By bridging the gap between convenience and quality, alcohol and soft drinks, indulgence and control, they have carved out a distinct and increasingly valuable role in the on-trade.

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