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The Rise of Canned Cocktails in the U.S. Market

In recent years, canned cocktails have surged in popularity within the American beverage landscape.

According to recent data, the consumption of ready-to-drink spirits reached over 62 million cases in 2023, marking an increase of nearly 25% from the previous year. Within this segment, canned cocktails have emerged as the second-largest spirit category by volume, trailing only vodka.

The trend gained momentum after the launch of White Claw in 2016, which rapidly captured the American market. This malt-based beverage initially offered a fresh option for those seeking light alternatives to beer, driving a sales boom over the following five years. However, the market soon became cluttered with an influx of similar products and an overwhelming assortment of flavors.

“The introduction of numerous new brands and an extensive range of flavor innovations led to market oversaturation,” stated Spiros Malandrakis, who leads alcoholic drinks research at Euromonitor International. He added, “As consumers faced too many choices, it became confusing, prompting them to withdraw from the category.”

In contrast, canned cocktails containing traditional spirits such as vodka, tequila, or gin have started to carve out a more prominent share of the ready-to-drink market. From 2021 to 2023, the market share for malt-based beverages declined by 8%, while spirits-based drinks increased by 8%.

Market dominance in the U.S. ready-to-drink spirits sector is concentrated among a few key players, with three brands controlling over half the market. High Noon is the frontrunner, produced by Gallo, a winery that also oversees well-known labels like Barefoot and Andre. Cutwater and Nutrl, both under the umbrella of Anheuser-Busch InBev, are also significant contributors to this growing category.

Despite the growth in the beyond-beer segment—which includes both malt and spirits-based drinks—this area still accounts for less than 5% of sales for AB InBev and around 7% for Molson Coors.

Robert Moskow, Managing Director at TD Cowen, noted, “There has been consistent growth in the beyond-beer category for several years, but the stock prices of these beer companies have not reflected this trend, indicating they are not fully capitalizing on the potential.”

Additionally, other major corporations are now entering the spirits market. Coca-Cola has begun collaborating with brands like Brown-Forman’s Jack Daniels whiskey to launch canned versions of iconic cocktails, signaling a notable shift in beverage offerings.

As canned cocktails continue to gain traction, it will be interesting to observe how this trend shapes the future of the beverage industry in the United States.

For a deeper dive into the rise of canned cocktails in the U.S., watch the accompanying video.

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