The Future of RTDs Is Winning the Third Space

Ready-to-drink (RTD) cocktails have undergone a radical transformation in recent years, moving from niche offerings to mainstream favourites.

Now, RTDs are more sophisticated than ever, blending convenience with premium appeal but my-oh-my is it crowded. To really stand out, innovation is not nearly enough. Let’s look at the current innovation cycle and map out a genuine opportunity to win outside of the can.

Expected Innovation

Coca-Cola’s foray into the RTD space with its alcoholic drink line proves the boundaries between soft drinks and alcohol are blurring. This move is a significant shift in the market as even non-alcoholic giants recognise the need to diversify and compete in the RTD space. And it’s going to get much busier.

Wellness trends are spicing up ingredients and packaging too, because today’s drinkers want their cocktails clean, green and guilt-free. We’re due more and more revolutions (not evolutions) in packaging that really subverts this category into its own. And don’t forget the wildcards – wine-based RTDs and non-alcoholic options are waiting backstage, ready to charm a whole new crowd.

But the future isn’t just about pumping out new flavours, cans or tapping into celebrity endorsements (like Travis Scott’s failed Cacti RTD, discontinued by Anheuser-Busch). There’s more magic and fun to be had.

Liquid and packaging innovation is one thing. The real winners will shape not just what we drink but how and where.

Where RTDs Are Winning

While the pandemic fuelled the RTD boom – with homebound consumers seeking bar-quality cocktails at home – the lift and love for the serves transported them out. RTDs have firmly cemented their place in bars, stadiums, theatres and other on-premise venues.

Two brands cutting through are Cutwater Spirits in the U.S. and MOTH: in the U.K., whose canned cocktails have become an enticing option at major sporting events, festivals and high-footfall events. Their cans are not only easy to serve but offer consumers an authentic bar-quality experience on the go.

The appeal is clear: venues can flog premium cocktails quickly, without the need for fully staffed bars, while drinkers can enjoy a top drink without the wait. Leaning into this presents a great on-premise opportunity for RTD brands to make lives of venues easier; from serve to experience. So, what venues do you work with?

The Future of On-Premise

As social drinking spaces evolve, so too do the beverages that fuel them. The idea of the “Third Space” — the social areas where we gather outside of home and work – has changed dramatically in recent years. No longer confined to pubs and bars, today’s third spaces include rooftop terraces, arcades, board game cafes, nightclub gyms, microbreweries, warehouses and more – each unique with its own micro-community.

Take NQ64, a fast-growing chain of arcade bars where retro gaming meets tasty mixology. The bar chain encapsulates the evolution of bar experiences, emphasising interaction, nostalgia and social media shareability. Tapping into such innovative third spaces enable brands to align with dynamic cultural movements and engage audiences in memorable ways.

Pop-up culture is another rising third space trend perfectly ripe for RTDs. Gone are the days of pub or sports bar sessions to consume too much too fast. Trend setters are maximising their days by going to experiences and connecting to close circles. The new ”let’s go for a drink” ideas are visits to galleries, streetwear launch parties and playful pop-ups. Look at BAPE x Monkey 47 launch parties – alcohol brands and cool experiences just work. Consumers want a limited event to be stocked with some delicious drinks. The payback? Ultra-relevant and ultra-local clout (awareness).

The future of on-premise isn’t about domination. It’s about integration. Brands that succeed in these spaces won’t try to take over the third space – they’ll understand it, blend into it and offer products that add value to a consumer’s experience, rather than distract from it.

Streetwear parties and pop-ups might signal gen z and millennials; however, the point here is that within product and brand development we must carve out an ownable occasion and a plan to integrate within an area of culture or community. The consumption demographics of RTDs are wide, so the onus is on us to develop razor sharp targeting strategies beyond “we sell to”, and into “we exist within”.

And winning the third space isn’t just about stepping into existing venues, you can create your own. Look at –196 from Suntory, their latest pop-up is a Japanese convenience store – “Konbini” – on wheels with a lemon scented portal and a secret speakeasy adorned in the visual codes of Japan and then taken to music festivals. (Shortlisted at the Campaign Experience Awards 2025 across four categories.) They created their own excuse for consumers to swap the bars and discover novelty.

Brands that think like experience architects, not just drinks manufacturers, will be the ones to thrive. The winners here will be synonymous with experience and occasion.

How Brands Can Win in the RTD Future

So, how do brands prepare for the future of RTDs?

Think beyond flavour variety. The market is crowded with countless new flavours every month, but innovation needs to go deeper. Think about what moments your RTD can create, not just how it tastes. How can your brand shape the culture around drinking, not just the drink itself? What world are you creating for your brand? Borrow from premium pioneers across fashion and art, build cult status through iconography and symbolism and make a brand consumable beyond liquid.

Don’t just occupy space, define it. RTDs are not just a product on the shelf anymore; they need to be central to the environments where they’re consumed. Innovate with the venue or occasion in mind, from designing new drinking rituals to creating experiences that blur the lines between hospitality and entertainment. If your brand can own the moment, it will own the consumer.

Be ready to tear up your own rulebook. Forget what worked before. The next chapter of RTDs will demand radical reinvention. Brands that thrive will be those brave enough to disrupt their own best ideas and build something completely unexpected. Stop thinking about what RTDs have been and start thinking about what they could be. Who knows, maybe there’s a whole new category to invent.