RTD Beverages Outpace Spirits as Consumer Tastes Shift

Ready-to-drink beverages now account for 94% of total spirits volume growth, even as overall alcohol consumption in the U.S. declines by 4% in 2025. This significant surge, documented by Distribution Strategy Group, reveals a profound internal reshuffling within the broader alcohol market, rather than an expansion of overall consumption. The convenience and novel flavors of RTDs have gained approximately three percentage points of category share, fundamentally altering how consumers engage with spirits.

A notable tension exists: overall alcohol consumption is decreasing, yet the ready-to-drink segment experiences explosive growth. In 2025, 54% of U.S. adults aged 18 and older reported using alcoholic beverages, a 4% decline from 2024, according to extension data. The 4% decline in U.S. adult alcohol consumption in 2025 suggests that while fewer individuals are drinking, those who do are shifting their preferences dramatically towards spirits, particularly RTDs, thereby masking deeper declines in other alcohol categories.

Traditional spirits brands must innovate rapidly with RTD formats and flavor profiles to remain relevant, or risk significant market share erosion. The future of the spirits industry hinges on capturing new consumer demographics with convenient, bold-flavored offerings, rather than relying on legacy categories.

The RTD Surge and Traditional Spirits' Stagnation

20% — Ready-to-drink (RTD) cocktails grew by about 20% in volume in 2025, according to bevindustry.
6% — Traditional spirits declined by around 6% in volume during the same period in 2025, according to bevindustry.
1% — Combined total spirits grew at around 1% in volume in 2025, according to bevindustry.

The 20% growth in RTD cocktails, 6% decline in traditional spirits, and 1% combined total spirits growth underscore the overwhelming market momentum behind convenience-driven beverages, even as overall spirits growth remains modest due to declines in traditional categories. The 1% combined total spirits growth masks a deeper decline in other alcohol categories, as RTDs capture share from within a shrinking overall market rather than expanding it. The dynamic of 1% combined total spirits growth masking a deeper decline in other alcohol categories indicates a fundamental shift in what and how people drink, rather than a simple decrease in drinking.

Metric	Details	Change
Brown-Forman Quarterly Sales	USD 911 million	-1% decline
Brown-Forman RTD Portfolio Sales	N/A (implied from growth)	+20% increase
Brown-Forman Whiskey Sales	N/A (implied flat)	Flat

Gen Z consumers show a strong inclination for bolder flavors, hard cider, Mexican beer imports, RTDs, and sparkling wines, as noted by extension data. Gen Z consumers' strong inclination for bolder flavors, hard cider, Mexican beer imports, RTDs, and sparkling wines, as noted by extension data, highlights how their rising influence and distinct preferences for convenience, bold flavors, and discovery are reshaping the market. Furthermore, 46% of consumers consider bars and restaurants the best places to try a new brand, with 69% subsequently looking for it at retail, according to Distribution Strategy Group. The finding that 46% of consumers consider bars and restaurants the best places to try a new brand, with 69% subsequently looking for it at retail, makes on-premise trials crucial for new brand adoption and for capturing the evolving tastes of younger demographics.