The canned cocktail market is attracting companies such as Coca-Cola and Anheuser-Busch.

Canned cocktails are having a moment.

In 2023, Americans purchased more than 62 million cases of ready-to-drink spirits, which was a 25% increase from the previous year. This made them the second-largest spirit category in terms of volume, surpassed only by vodka.

In 2016, White Claw was launched in the U.S. and gained popularity rapidly. Unlike light beer, it offered an alternative drink option, leading to a surge in sales. However, the market soon became oversaturated.

Euromonitor International's head of alcoholic drinks research, Spiros Malandrakis, stated that the influx of new brands and flavor sophistication initiatives led to an oversaturation of options, which devalued the core proposition of the brands. As a result, consumers became confused and took a step back.

In the ready-to-drink alcoholic beverage market, canned cocktails that contain spirits like vodka, tequila, or gin have started to gain popularity, while malt-based drinks have seen a decline in market share from 2021 to 2023. Specifically, malt-based drinks fell by 8% in market volume, while spirits-based drinks grew by 8% during the same period.

The ready-to-drink spirits market in the U.S. is dominated by three brands, with High Noon, owned by Gallo, being the largest player. Cutwater and Nutrl, both owned by beer giants, are also significant players in the market.

The beyond-beer segment, which encompasses both malt- and spirits-based beverages, accounts for less than 5% of U.S. sales for AB InBev. It accounts for approximately 7% for Heineken.

Robert Moskow, TD Cowen Managing Director, stated that these companies have experienced exponential growth in their beer sales over the past 5, 6, and 7 years. However, their stock prices have not increased significantly during this period, indicating that they are not benefiting from this growth.

The soft drink giant has entered the alcoholic beverage industry by introducing a number of its popular drinks, including a partnership with Jack Daniels whiskey to create a canned version of a classic bar drink.

The U.S. has seen a surge in the popularity of canned cocktails.