Hard seltzer is losing ground as RTDs turn toward spirits
A few years ago, hard seltzers were among the most talked-about categories in the global beverage world. The lightly alcoholic sparkling waters had persuaded major groups and independent brands alike to bet on a format that seemed set for further expansion. The U.S. market, which accounts for the dominant share of global hard seltzer consumption, was feeding those expectations: forecasts pointed to a tripling of the segment within a few years.
The path has since cooled. From mid-decade onwards, hard seltzer volumes began to decline in several key markets, starting with the United States. The format has not disappeared — leading brands are still keeping it alive — but it has lost the prominence it gained during the boom, especially as the wider ready-to-drink universe started moving in a different direction.
Growth is shifting toward spirits
The paradox is that the RTD market as a whole keeps growing. In 2025, in the markets covered by IWSR data, RTDs were the only major alcoholic beverage category to expand in both volume and value. But that growth was not driven by hard seltzers. In the United States, spirits-based RTDs outperformed malt-based RTDs, which include traditional hard seltzers and continued to weaken.
The more interesting signal is the shift in the category’s centre of gravity. Consumers seem to be gravitating toward products with a clearer identity: a declared spirit base, a more recognisable profile, and a closer link to cocktail language. Vodka, tequila, whisky: spirits that once belonged mainly to bar mixing are becoming the starting point for many of the next generation of RTDs.
This shift is also visible in the way categories are being presented. Many brands are moving away from the hard seltzer label in favour of more explicit terms such as vodka seltzer or tequila soda. It is not just a semantic change. In a crowded market, the product name helps set expectations immediately, and makes the format easier to understand at a glance.
The format is changing shape
What is emerging is not the end of a segment, but its transformation. Some producers are moving to higher ABVs, stepping out of the typical four-to-five percent range and into a middle ground between seltzer and cocktail. Others are exploring hybrid formats such as hard iced tea, combining a lighter drinking experience with more recognisable flavour cues.
The most dynamic part of the market, however, appears to be spirits-based ready-to-drink cocktails. Here the premiumisation logic is most visible: products that bring the idea of a bar-made drink into a can, but with price points and audiences that can vary widely. Port of Leith Distillery, an Edinburgh-based distillery, recently launched a canned Old Fashioned built around its own single grain Scotch whisky and enriched with Pedro Ximénez Sherry. It is one example of how ready-to-drink can move closer to a classic cocktail without losing all of its complexity.
At the other end of the spectrum, in terms of volume and distribution, Brown-Forman, the U.S. spirits group, launched el Jimador Tequila Spritz nationally: a tequila blanco RTD available in three fruit-forward varieties. The goal here is different — to capture more immediate, seasonal drinking occasions with an accessible, easy-to-read profile. Yet the broader direction is similar: RTD is becoming an increasingly natural territory for declared spirits.
These cases are not enough to define the future of the entire category, but they do help illustrate a clear trend in some important markets. Ready-to-drink is no longer just the home of low-cost fizzy alcoholic water. It is now a space where mass-market products and more curated propositions coexist, alongside canned cocktails, lighter serves and ongoing experimentation.
Hard seltzers will probably remain part of the market, though in a more reduced position than the boom years suggested. For now, at least, the liveliest part of the segment is looking mainly toward spirits.
