RTDs surge to $2.5bn as drinking habits shift in bars and pubs

Sales of ready-to-drink (RTD) alcoholic beverages in Australia’s bars and pubs have surged, with the category now worth $2.5 billion and growing rapidly.

New data from NielsenIQ shows RTD spending in the on-premise channel rose 12% in 2025 alone and is up 35% over the past two years, making it the fastest-growing category across the licensed sector.

RTDs now account for 15% of all on-premise drinks spend, up from 12% in 2023, and rank as the third-largest category by value behind beer, cider and spirits.

The growth reflects a broader shift in how Australians are drinking when they go out.

Draught RTDs now make up the majority of sales, accounting for 53% of the category, with volumes up 57% over two years — more than three times the growth seen in packaged formats. In total, Australians consumed around 198 million RTD serves in licensed venues in 2025.

Vodka-based drinks continue to dominate, making up 48% of sales, followed by whiskey-based RTDs at 27%.

Younger consumers are driving demand, with 46% of RTD drinkers aged between 18 and 34, according to the data.

Across all age groups, value, branding and convenience remain key drivers, alongside refreshment and ease of consumption.

Ryan Winslade, client associate director at NielsenIQ, said the category is becoming increasingly competitive as growth accelerates.

“The ready-to-drink category is one of the hottest parts of Australia’s on-premise at the moment,” he said.

“But in an increasingly competitive space, all brands and venues will have to work hard to stand out from the crowd.”

The shift is also changing the role RTDs play in a night out.

“On-premise is where that battle plays out. It’s where people try something new, form habits, and decide what their ‘go-to’ actually is - and right now, RTDs are winning more of those moments,” said Matthias Blume, vice president and general manager, alcoholic ready-to-drink beverages.

“This isn’t about replacing beer or wine. But it is about this: consumers are not wanting all night long the same and RTDs are moving from being a pivot drink to a drink to start the occasion.”

The data points to a broader shift in drinking behaviour, with RTDs continuing to expand beyond retail into bars and pubs as a mainstream choice.