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RTD Alcoholic Beverages Market Research Report—Global Forecast till 2028

RTD Alcoholic Beverages Market Research Report: Information by Type (Alcopop, Cocktail Pre-Mixes and Bottled Cocktails), Packaging Type (Bottles and Cans), Distribution Channel (Store-Based and Non-Store-Based), and Region (North America, Europe, Asia-Pacific, and Rest of the World) —Forecast till 2028

ID: MRFR/F-B & N/6448-CR | February 2021 | Region: Global | 110 Pages         

RTD Alcoholic Beverages Market

RTD Alcoholic Beverages Market is projected to register a CAGR of 3.50% and reach a value of USD 17,470.2 million by 2028.

Segmentation

By Type Alcopop Cocktail Pre-Mixes Bottled Cocktails
By Packaging Type Bottles Cans Others
By Distribution Channel Store-Based Non-Store-Based

Key Players

  • Asahi Group Holdings Ltd. (Japan)
  • Halewood International Limited (UK)
  • Mike’s Hard Lemonade Co. (US)
  • Bacardi Limited (Bermuda)
  • The Brown-Forman Corporation (France)
  • Anheuser-Busch InBev SA/NV (Belgium)
  • Pernod Richard (France)
  • Diageo PLC (UK)
  • Beam Suntory Inc. (US)
  • The SHS Group (UK)

Drivers

  • Millennials to Emerge as Key Consumer Base in Global Market
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RTD Alcoholic Beverages Market Overview


The global RTD Alcoholic Beverages market is projected to register a CAGR of 3.50% and reach a value of USD 17,470.2 million by 2028. RTD alcoholic beverages are ready-to-drink beverages with a certain amount of alcohol content in them. The growth of the global RTD alcoholic beverages market is driven by the rising association of RTD beverages with convenience. Rising consumer preference for low alcoholic beverages is another factor boosting the sales of RTD alcoholic beverages. Players operating in the global RTD alcoholic beverages market are expected to witness lucrative opportunities owing to product innovation, adoption of growth strategies, and growth of the organized retail sector. However, surging demand for non-alcoholic beverages is restricting the market growth.

Coca-Cola is expanding further into the market for ready-to-drink cocktails and alcoholic seltzers. The website for the company revealed the impending release of a Jack Daniel's and Coca-Cola ready-to-drink can later this year in Mexico. The company's existing portfolio of alcoholic beverages will expand to include the new product line, which will feature Classic Coke and Coca-Cola Zero Sugar variants.


COVID-19 Impact Analysis


The advent of the global pandemic, COVID-19, has resulted in creating a global crisis across the world. The global pandemic is deemed to create a chaotic environment, thereby resulting in the advent of global rescission. With the rapidly rising cases, the RTD alcoholic beverages market is getting affected in many ways.

In a survey of over a thousand people who regularly consume alcoholic beverages, Benori Knowledge, a cutting-edge provider of custom research and analytics solutions, found that 78% of respondents had tried one of these ready-to-drink concoctions at least once. Nearly 55% feel that RtDs are the ideal social beverage to consume because of their reduced alcohol potency compared to spirits. When it comes to RtD purchases, Indian consumers put less emphasis on cost than they would on other types of purchases. According to Benori's analysis, the most important elements influencing and driving purchase in this category are perceived quality of the brand, intensity of flavor, and alcohol content (5% or less is preferred).


Market Dynamics


The Global RTD Alcoholic Beverages Market is expected to grow at a CAGR of 3.50% during the forecast period 2021-2028. RTD alcoholic beverages are ready-to-drink beverages with a certain amount of alcohol content in them. The growth of the global RTD alcoholic beverages market is driven by the rising association of RTD beverages with convenience. Rising consumer preference for low alcoholic beverages is another factor boosting the sales of RTD alcoholic beverages. Players operating in the global RTD alcoholic beverages market are expected to witness lucrative opportunities owing to product innovation, adoption of growth strategies, and growth of the organized retail sector. However, surging demand for non-alcoholic beverages is restricting the market growth.


Drivers:



  • Rising association of RTD Beverages with convenience


RTD alcoholic beverages are convenience drinks that can be consumed immediately post their purchase and at any time and place. Ready-to-drink alcoholic beverages are contributing to the growth of the overall alcoholic beverages segment as they are being perceived as convenient and on-the go alcoholic drinks. Consumers are looking for convenience, and alcoholic beverages such as ready-to-drink cocktails, and alcopops are offering consumers with the same, as the consumers no longer must sit at a bar or a restaurant to enjoy an alcoholic drink. RTD alcoholic beverages are gaining demand across the global populace, especially among the millennials, who associate ready-to-drink beverages with convenience, premiumization, innovation, and a perfect blend in their social lifestyle. Alcoholic beverages in ready-to-drink formats are no longer perceived as cheap and tacky, rather, they provide style, convenience, and social connection. Manufacturers are launching products in new packaging such as cans, boxes, and Tetra Pak, which provide for more convenient and portable options to the consumers. Ready-to-drink alcoholic beverages are gaining demand as a convenience drink in social gatherings, outdoor picnics, pool-side parties and other such occasions that require relaxing and unwinding from the daily-routine chores.


Hence, rising association of RTD beverages, including alcoholic beverages, with convenience is boosting the growth of global RTD alcoholic beverages market and is expected to continue to do so during the upcoming years.


Restraint:



  • Surging demand for non-alcoholic beverages


The trend of adopting healthy lifestyle is rapidly increasing among the consumers. Mass consumers’ population across the globe is becoming more aware about the food and beverages they consume and compare the products in order to choose the better. Rising consumer awareness, increasing number of informed consumers with clear perceptions and willingness to engage in buying healthy goods are factors that are boosting the demand of non-alcoholic beverages globally. Consumer behavior includes the rate of adoption of new innovative products and their spending decision and as consumers are becoming increasingly aware of the benefits of non-alcoholic beverages, the adoption rate has been increasing. Rising health awareness amongst consumers and pursuit of healthy lifestyle, as well as corresponding purchasing behavior, has opened new market opportunities for industrial players to tap the unexplored market horizon of non-alcoholic beverages. For instance, beverage companies are exploiting the benefits of cultural shift amongst the people from alcoholic beverage consumption to non-alcoholic beverage consumption. Additionally, they are focusing on the development of new and innovative products that not only provide zero alcohol content but align with the health and wellness needs of the consumers. For instance, The Coca-Cola Company launched its VitaminWater range and a new energy drink combining caffeine, guarana extracts and B vitamins. Similarly, kombucha, a fermented tea filled with live bacteria to aid in healthy digestion, is available in RTD formats and is witnessing a hike in its demand as the RTD format is more accessible to consumers. In January 2019, The Coca-Cola Company launched a new product line of alcohol-free sparkling drinks in the US. The product line is available in bar-inspired flavors and ingredients to attract beer, wine and cocktail drinkers.


Thus, surging demand for non-alcoholic beverages and rising focus of non-alcoholic beverage manufacturers on new product development are hampering the market growth of RTD alcoholic beverages.


Opportunities:



  • Product Innovation


Consumers, especially the millennial have more inclination towards new flavors. They are upfront towards experimenting with new and uniquely flavored beverages to satiate their taste buds. This is seen as one of the potential opportunities for the manufacturers of RTD alcoholic beverages to generate high revenues through their offerings. Providing consumers with unique flavor blends or customizable offerings will attract consumers towards the product-line thereby supporting the sales. Market players are experimenting with new and interesting flavors that traditionally have only been available in bars. According to MRFR analysis, majority of consumers prefer the assorted flavour option in hard seltzers, depicting the eagerness among consumers for flavour choice. Product innovation, in terms of flavour, has offered several growth opportunities to many market players. For instance, the UK based VK brand of the Global Brands Ltd, involved its customers in the new product development process and launched a new product line offering the most desired flavour by its customers. Owing to which, the VK brand is witnessing huge demand in the UK’s both off-trade and on-trade markets. RTD alcoholic beverages market has for long being witnessing several product innovations. RTDs, in alcoholic beverage market were once recognised only by the brightly coloured alcopops, however, this perception has no evolved due to the launch of innovative products such as canned wines, pre-mixed cocktails and hard seltzers.


Thus, rising investments by market players in their R&D, to launch innovative products is expected to offer numerous profitable growth opportunities to the market players during the upcoming years.

By the end of 2022, Monster will release its first ready-to-drink (RTD) alcoholic flavored malt beverage, with the promise that it will "carve out its own unique area" in the increasingly competitive market. And the corporation gives strong indications that this is not an isolated effort; several other product lines are in the works. The CEO of Monster Beverage Corporation has announced that their 6% ABV alcoholic beverage, 'The Beast Unleashed,' will be released in late 2022. In January of this year, Monster spent $330 million to acquire CANarchy Craft Beer Collective, a maker of craft beer and hard seltzer.


Segment Overview


By Type


Based on product type the global RTD Alcoholic Beverages market has been segmented into alcopop, cocktail pre-mixes, and bottled cocktails. The alcopop segment accounted for the largest market share of 58.49% in 2020, whereas the bottled cocktails segment is projected to register a higher CAGR of 3.60% during the period of 2021-2028.


By Packaging Type


Based on the packaging type, the global RTD Alcoholic Beverages market has been segmented into bottles, cans & others. The bottles segment accounted for a larger market share of 57.93% in 2020, whereas the cans segment is projected to register a higher CAGR of 3.71% during the period of 2021-2028.


By Distribution Channel


Based on the distribution channel, the global RTD Alcoholic Beverages market has been segmented into store-based and non-store-based. The store-based segment accounted for a larger market share of 87.87% in 2020, the non-store-based segment is projected to register a higher CAGR of 3.97% during the period of 2021-2028.

Alcoholic beverage companies such as Pernod Ricard, Brown-Forman, Bacardi, Radico Khaitan, and Diageo are releasing their own lines of ready-to-drink cocktails in cans to cater to the shift in consumer drinking habits that has occurred during the epidemic years. As a result of the current pandemic's string of lockdowns and movement limitations, most individuals are now opting for easy-to-consume in-home drinking and ready-to-drink cocktail options. These businesses are releasing a wide variety of new cocktail creations, including drinks made with whisky, vodka, and gin and tonic that has already been pre-mixed and canned. Not only that, but new businesses providing cocktail mixers and pre-mixed beverages have emerged in the market, led by brands like Jimmy's Cocktails, RockClimber, and Salud.


Global RTD Alcoholic Beverages Market Share, by region, 2020 (%)
RTD Alcoholic Beverages Market Share, by region, 2020 (%)
Sources: MRFR Analysis


Regional Analysis


By region, the global RTD Alcoholic Beverages market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. Europe accounted for the largest market share of 44.89% in 2020, the market is expected to register the highest CAGR of 3.31% during the forecast period. North America was the second-largest market in 2020, the market is projected to exhibit a CAGR of 3.38%.


Europe


Europe region is accounting for 44.89% of market proportion in the year of 2020 and it is projected to expand at a high CAGR of 3.31% the forecast period of 2021-2028. Europe includes respective countries such as the UK, Germany, Italy, France, Russia, and the Rest of Europe. Europe accounts for a significant share of the ready-to-drink market for alcoholic beverages. RTD alcoholic beverages are a good replacement for full-fledged alcoholic beverages. Consumers looking to reduce their alcohol consumption prefer these drinks because they have very low alcohol content. Additionally, a wide range of low-alcohol beverages with innovative flavors are available in the market. Most of the alcohol in low-alcohol drinks has been removed by osmosis. These drinks prove to be a better choice for anyone who needs to avoid alcohol completely or wants to reduce their alcohol intake. The ready-to-drink alcoholic drink is ideal for moderate drinkers without health problems. Consumption of alcoholic beverages is associated with a risk of developing health problems such as behavioral and mental disorders, including alcohol dependence, serious non-communicable diseases such as liver irritation, cardiovascular diseases, and certain cancers as well as injuries resulting from violence and the fight against traffic and collisions. Increasing consumer awareness of the drawbacks associated with the high consumption of alcoholic beverages is driving the RTD alcoholic beverages market. These drinks are mostly low in alcohol content which further bolsters the market growth during the review period.


North America


North America is also accounting for significant market share in the global RTD Alcoholic Beverages market in the year of 2020 and is expected to grow at a CAGR of 3.38% during the forecast period 2021-2028. The North American ready-to-drink alcoholic beverage market is dominated by the United States, followed by Canada. The United States is another major country that dominates the ready-to-drink alcoholic beverage market in North America, followed by Canada. The consumption of alcoholic and premixed beverages is subject to various regulations developed by the government. Alcohol production and consumption are on the rise in the United States due to population growth. Further, rising preference for ready-to-drink cocktails by millennials in developed countries like the US and Canada and the easy availability of these products in the market is fueling the demand of the ready-to-drink alcoholic beverages market in North America.   

Ready-to-drink cocktails have become increasingly popular as convenience overtakes quality. As soon as BEAT Cocktails realized what could be done, they jumped in. It hopes to provide the affluent consumer base with a wide range of easy-to-access beverage options. Since gin is such a popular cocktail base, we've begun with gin-based cocktails, but we plan to eventually include cocktails made with other spirits as well. Our portfolio will feature a variety of hand-made drinks. Designed and made in a cutting-edge workshop in Goa, India. The drinks at BEAT have been created with a wide range of tastes and preferences in mind. BEAT's primary goal in entering the Indian market is to raise profile of the category among Indian consumers. In addition, there has been a rise in the at-home drinking culture in the post-Covid era, which has led customers to seek out a wider selection of drinks for their private bars. Blending practicality and deliciousness, BEAT Cocktails provides just that.


Competitive Landscape


The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach and diverse product portfolios. Companies such as Asahi Group Holdings, Ltd. (Japan), The Brown-Forman Corporation (France), Pernod Ricard SA (France), and Diageo PLC (UK), dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.


Prominent players in the global RTD Alcoholic Beverages market Asahi Group Holdings, Ltd. (Japan), Halewood International Limited (UK), Mike's Hard Lemonade Co. (US), Bacardi Limited (Bermuda), The Brown-Forman Corporation (France), Pernod Ricard SA (France), Anheuser-Busch InBev SA/NV (Belgium), Diageo PLC (UK), Suntory Beverage & Food Limited (US), The SHS Group (UK).


Recent Developments


Few developments that occurred in recent times influencing the market growth of RTD Alcoholic Beverages are listed below:



  • In June 2019, De Kuyper Royal Distillers and Beam Suntory, Inc. partnered to tap the German market. Beam Suntory, Inc., a world leader in premium spirits, will distribute and market the following De Kuyper liqueur and spirits brands in Germany: De Kuyper cocktail liqueurs, Peachtree, Rutte Gins & Genever, Mandarine Napoléon, Bébo Cuban coffee liqueur, Kwai Feh lychee liqueur, De Kuyper Piña Colada, Fiorito Limoncello and Cherry Heering.


Scope of the Report


Global RTD Alcoholic Beverages Market, by Type



  • Alcopop

  • Cocktail pre-mixes

  • Bottled cocktails


Global RTD Alcoholic Beverages Market, by Packaging Type



  • Bottles

  • Cans


Global RTD Alcoholic Beverages Market, by Distribution Channel



  • Store-Based

  • Non-Store-Based


Global RTD Alcoholic Beverages Market, by region



  • North America

  • US

    • Canada

    • Mexico



  • Europe

    • UK

    • Germany

    • France

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • South Korea

    • India

    • Southeast Asia

    • Rest of Asia-Pacific



  • Rest of the World

    • Latin America

    • Middle East & Africa




Intended Audience



  • Female

  • Men

  • Unisex

  • HoReCa

  • Pubs and bars



Report Scope:

Report Attribute/Metric Details
  Market Size   USD 17,470.2 million
  CAGR   3.50%
  Base Year   2020
  Forecast Period   2021-2028
  Historical Data   2019
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Packaging Type, Distribution Channel
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Asahi Group Holdings Ltd. (Japan), Halewood International Limited (UK), Mike’s Hard Lemonade Co. (US), Bacardi Limited (Bermuda), The Brown-Forman Corporation (France), Anheuser-Busch InBev SA/NV (Belgium), Pernod Richard (France), Diageo PLC (UK), Beam Suntory Inc. (US), The SHS Group (UK)
  Key Market Opportunities   Latin America to Present Attractive Opportunities
  Key Market Drivers   Millennials to Emerge as Key Consumer Base in Global Market


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Frequently Asked Questions (FAQ) :

RTD alcoholic beverages market is projected to grow at a 3.50% CAGR between 2021-2028.

Europe is expected to dominate the RTD alcoholic beverages market.

RTD alcoholic beverages market is predicted to touch USD 17,470.2 million by 2028.

Rum will lead the RTD alcoholic beverages market.

Bottles will dominate the RTD alcoholic beverages market.