Ethnic cuisine set to boost sales of RTDs

RTDs are forecast to see “significant growth” over the next six years, driven by changing tastes and a demand for exciting flavours. The post Ethnic cuisine set to boost sales of RTDs appeared first on The Drinks Business.

Apr 25, 2025 - 07:27
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Ethnic cuisine set to boost sales of RTDs
RTDs are forecast to see “significant growth” over the next six years, driven by changing tastes and a demand for exciting flavours. According to new insight revealed by analysts taking a deep dive into the category and the trends that will shape its future, “the global RTD alcoholic beverages market is observing significant growth owing to the rising popularity of ethnic cuisines”. The research indicated that if looking at the sector from a geographical standpoint then the trends become clearer. The analysts have stated: “In 2024, Asia Pacific led the market with a substantial revenue share, followed by Europe and North America, respectively. Asia Pacific is estimated to register the highest CAGR during the forecast period.” The research outlined how, in terms of market growth, the RTD sector is expected to reach US$75.30 billion by 2031 up from US$46.64 billion in 2024 and is expected to register a CAGR of 7.1% during the forecast period. Elements broadening the RTD sector and opening it up to more consumers are ones that primarily tap into wellness trends as well as a consumer desire to experiment with unique flavours. The analysts identified how “consumers nowadays prefer better-for-you, organic, and low-sugar products with unique flavours and ingredients that offer strong innovation and branding opportunities to the market players”. Plus, the report pointed out how crucial social media marketing was to the sector since RTD beverages are popular with “younger generations, such as millennials and Gen Z, who prioritise convenience and innovation in their drink choices”. The analysts highlighted how a “key strategy is intensive social media marketing, where brands capitalise on viral trends, memes, and influencer collaborations to drive engagement”. But, they warned, consumers were also relatively fickle when it came to flavours. The report added that consumer preference for flavour is becoming a moveable feast and noted how “flavour experimentation has expanded beyond conventional citrus and berry profiles to incorporate exotic fruits, herbal infusions, and global-inspired blends, catering to consumers' growing interest in premium taste experience”. Global Brands recently released a new Lemon & Lime flavour for its VK RTD brand that tapped into what consumers were saying they wanted. Speaking to db about the launch, VK senior brand manager Holly Bolus explained: “We’re seeing that the ‘Big Night In’ occasion has continued to gain momentum, with Gen Z audiences in particular opting to socialise at home rather than go out. In 2024, research showed that 38% of consumers now prefer small social gatherings at home, enjoying the relaxed setting and ability to control their own experience". Another element that could offer reasons behind why food and flavour are playing such a critical role in the category's anticipated rise in popularity. Silicon Valley Bank’s 2025 wine industry report, which analyses the state of the US market, also recently suggested that wine-based RTDs were seeing big success, shooting up by 29.3% over the reported period.