The ready-to-drink (RTD) cocktail market has seen a significant rise in popularity, with tall, skinny cans becoming a staple in liquor aisles. However, some niche brands are opting for glass packaging to differentiate their premium offerings. This shift towards glass is particularly noticeable in the RTD segment, which includes not just alcoholic seltzers but also hard teas, kombuchas, and various cocktails.

As the beer industry moves away from glass bottles in certain areas, the glass packaging sector is finding new opportunities in these other beverage categories. “Consumers perceive products packaged in glass as more premium,” says Alexis Guetzlaff, Director of Marketing at O-I Glass. For brands aiming for a higher price point, glass provides the weight and feel that aligns with premium branding, even as other beverage producers pivot to lighter packaging alternatives.

According to data from IWSR, a global drinks industry data provider, RTDs now hold 12% of market share by volume in the U.S. beverage alcohol market. While growth has slowed from the 23% compound annual growth rate (CAGR) between 2018 and 2023 to a projected 3% CAGR from 2023 to 2028, RTDs remain a strong category. In fact, the frequency of consumption is increasing, with 45% of RTD consumers drinking them weekly in 2023, up from 38% the previous year.

Within this maturing market, premium RTD producers are keen to stand out. Brands focused on spirit-based cocktails are using glass packaging to distinguish their offerings from malt-based competitors like hard seltzers. According to Bart Silvestro, CEO of Via Carota Craft Cocktails, visual differentiation is key in a crowded market. His company partnered with the design firm Stranger & Stranger to create a “bar cart worthy” product that uses glass for its premium appeal, though Silvestro acknowledges that finding bottling facilities for single-serve glass packaging can be a challenge.

At Barrelsmith, a business specializing in oak barrel-finished RTD cocktails, glass packaging is also a priority. Founder and CEO Matt Ellenthal emphasizes that their focus on higher-alcohol beverages makes glass the natural choice. “Glass has that association with premium, high-ABV products in the consumer’s mind,” Ellenthal said. The company uses stock bottles for now but is working on a custom bottle design to further elevate the brand’s packaging.

In the view of Guetzlaff from O-I Glass, glass packaging offers an important way for brands to capture consumer attention on crowded shelves. She highlights O-I’s Drinktainer, a straight-walled, wide-mouthed rip cap bottle design, as an innovative option for bars and restaurants to package single-serve cocktails. Right Coast Spirits Italian Ice is one of the first brands to utilize this packaging, combining functionality with a premium look.

The bar and restaurant environment is especially important for glass-packaged RTDs, as many consumers first try new products in these settings. Guetzlaff notes that having glass options allows brands to expand their reach in on-premise sales, where the elevated experience of drinking from glass adds to the overall appeal.

While RTD alcoholic beverages are a key driver for glass packaging, other segments like sparkling water are also showing potential. Although cans and plastic dominate this market, Fortune Business Insights projects growth in the glass bottle segment for sparkling water in the coming years. Non-alcoholic beverages and mixers are also turning to glass for a premium feel, with brands like Betty Buzz using stubby glass bottles for their sparkling mixers, including tonic water and ginger beer.

As the lines between beverage categories blur, glass packaging continues to offer opportunities for innovation. “There’s so much creativity in the beverage space overall, and that’s really exciting,” Guetzlaff said. The versatility, premium appeal, and sustainable advantages of glass make it a compelling choice for brands looking to differentiate themselves in an increasingly competitive market.