RTDs rising: What’s driving the boom in New Zealand and Australia?

Ready to drink (RTD) beverages are fast becoming a preferred choice for many On Premise consumers in Australia and New Zealand. But what’s driving this trend? And how can drinks brands and suppliers tap into it?

There has been a noticeable annual increase in how frequently consumers are choosing RTDs during On Premise visits:

 

  • Australia – Almost half (49%) of RTD drinkers are enjoying RTDs nearly every time they go out, a jump from 39% year-on-year (YOY).
  • New Zealand – 41% of RTD drinkers now drink RTDs every time or almost every time they visit the On Premise, up from 34% last year.

 

This shift is largely driven by the presence of much-loved brands in the RTD format, enabling consumers to enjoy familiar flavours in convenient, ready-to-drink options.

 

 

This is an especially strong motivator in New Zealand, with almost a third (30%) of consumers saying that the presence of their favourite brands as an RTD is their primary reason for choosing the category, (+7pp compared to the previous year). In contrast, this influence is slightly declining in Australia, (-1pp to 21%).

 

 

The untapped potential of Tap/Draught RTDs

 

RTDs on tap is an area with compelling growth potential.

 

  • Only 39% of consumers report seeing tap RTDs in the venues they regularly visit in New Zealand, -15pp versus Australia’s higher penetration rates.
  • Consumers in both markets are particularly interested in tap/draught RTDs for high-energy social occasions, such as nights out with friends.

 

These findings indicate a clear opportunity for drinks brands and suppliers to leverage the demand for quick service and convenience, simply by increasing the availability of draught RTDs.

 

It’s a win: win solution, offering both operational efficiency for venue operators and a smooth experience for consumers.

 

Where are RTDs most popular?

 

The appeal of RTDs varies by venue type, with nightclubs, bars, and pubs seeing different levels of adoption:

 

New Zealand:

  • Nightclubs – 35% (second most popular category)
  • Bars – 24% (third most consumed category)
  • Pubs – 13% (eighth most consumed category)

 

Australia:

  • Nightclubs – 25% (fifth most consumed category)
  • Bars – 21% (fifth most consumed category)
  • Pubs – 12% (eighth most consumed category)

 

The analysis shows RTDs gaining ground in venues where spirits have traditionally dominated. Ease of service is a key factor for this surge, making RTDs an attractive option for operators looking to boost efficiency while meeting consumer demand.

 

Tom Graham, Senior Manager – ANZ said: “The rise of RTDs in the Australian and New Zealand markets presents a striking opportunity for drinks brands and suppliers to expand their reach in the On Premise sector by providing the familiarity consumers crave, while providing venue operators with the many and varied benefits accompanying tap RTDs. It’s clear the key takeaway for industry stakeholders is to focus on innovation in order to meet consumer demand for recognition, taste and convenience.”

 

 

CGA by NIQs upcoming OPUS survey delves deeper into the RTD landscape, exploring tap versus packaged serves, and providing key insights into the factors driving consumers to purchase RTDs in the On Premise.

 

Get in touch here to learn more about how OPUS can enable insight driven decisions throughout your business, or download OPUS information packs below:

 

Australia OPUS Information Pack

New Zealand OPUS Information Pack 

Recent posts:

Share post

Archive

Subscribe to our newsletter

Access the latest On Premise news and reports by signing up below. 

CGA