ID: MRFR/F-B & N/6448-CR | April 2020 | Region: Global | 100 pages
Market Research Future (MRFR) expects the RTD Alcoholic Beverages Market to touch USD 17,134.3 Million by 2025. It is also anticipated that the market size can blossom at a rate of 3.44% from 2019 to 2025 (review period).
The COVID-19 outbreak has had a detrimental impact on the food and beverage industry, with the temporary shutdown of manufacturing facilities and weakened demand. With the primary focus on curbing the spread of SARS-CoV-2 among the healthcare workers, players in the RTD alcoholic beverages industry are fixated on fostering their supply chains and accelerating their operations to curb further revenue losses. Additionally, with the gradual lifting up of the lockdown across countries and the novel coronavirus under control, the global market can recover faster in the coming years.
Millennials to Emerge as Key Consumer Base in Global Market
Consumers are constantly seeking out convenient forms of alcoholic beverages including alcopops and ready-to-drink cocktails, and no longer prefer to spend time at bars or restaurants. These beverages have gained significant demand among the global population, especially among millennials who are inclined towards premiumization, innovation, convenience, and products that cater to their social lifestyle. The accelerated demand in pool-side parties, outdoor picnics, social gatherings, and various occasions also benefits the rtd alcohol market.
Latin America to Present Attractive Opportunities
Latin America will most likely present a host of lucrative opportunities to global players, considering the fast-growing demand for premium products as well as the rising availability of new flavors in RTD beverages.
Cultural Beliefs Across Certain Countries Banning Alcohol to be a Huge Challenge
Cultural and religious beliefs across a number of countries, heavy duties and taxation, and health issues related to consumption of alcohol can be a few challenging factors for leading firms in the ensuing period.
Alcopop Segment Captures the Highest Share
Types of RTD alcoholic beverages are cocktail pre-mixes, bottled cocktails and alcopop. In 2018, the alcopop segment captured a share of 58.49%, attaining the leading spot in the process. Meanwhile, the bottled cocktails segment should grab the fastest growth rate of 3.54%, given the strong demand for the same in on-trade as well as off-trade markets.
Bottles Packaging Type to be the Most Preferred
The different packaging types covered in the report include cans, bottles, and others. The bottles segment took the lead in the year 2018, as this packaging style has gained high traction among beverage manufacturers and consumers, given their durability, hygiene, and aesthetics. Bottles are also popular for their excellent holding capacity. On the other hand, cans segment can project the highest development rate as they are convenient and are ideal for consumers leading an on-the-go lifestyle. An emerging trend among manufacturers is the escalating use of recycled aluminum material for packaging, in view of growing environmental concerns.
Store-Based Distribution Channels to Take the Lead
Various distribution channels in the global industry are store-based as well as non-store-based. The types of store-based channels are specialty stores, supermarkets & hypermarkets, and others. The store-based segment is in the lead since consumers prefer the one-stop shopping experience provided by these channels. However, the fastest-growing segment in the near future can be the non-store-based channels.
Europe to Grab the Top Position with Germany Taking the Lead
Europe could emerge as the most profitable market for RTD alcoholic beverages and had managed to capture a share of 44.89% in 2018. The market could expand at a decent rate of 3.24% between 2019 and 2025 while Germany can remain the most lucrative market in the region. RTD alcoholic beverages have created a niche in the region and are mostly preferred as long drinks and cocktails. The highest preference for ready to drink cocktails is witnessed among millennials, while the demand among the health-conscious mass has mounted considerably since RTD alcoholic beverages have lower alcohol content compared to other drinks.
North America to Make Moderate Progress
RTD alcoholic beverages in North America witness high consumption rate and therefore, the market in the region should progress at a moderate rate of 3.31% in the following years. The most popular flavors in the region, especially in the United States, are berries, citrus, spices, tropical, among others. The consumer preference in the region is majorly towards flavored beverages, in view of which manufacturers are steering their focus on the development of new flavors in RTD alcoholic beverages. Another fascinating factor for consumers is attractive packaging style; for instance, high strength premix and canned wine, which has also emerged as a focus area for the manufacturers in the RTD alcoholic beverages market in North America.
Asia Pacific to Procure the Fastest CAGR
Asia Pacific is on track to procure the fastest growth rate over the conjectured period, in view of the countries like China, Japan and India emerging as prominent consumers of RTD alcoholic beverages. Asia Pacific also stands as one of the top world producers of alcoholic beverages, on account of evolving consumer lifestyles, surging purchasing capacity of the consumers and their changing tastes as well as preferences combined with cultural and social factors. The fact that the population in the region is fond of trying out new varieties of beverages and food products also works in favor of the market. This fact encourages the local manufacturers to bolster their product portfolio to cater to the constantly changing demands of the consumers.
Firms Focus on Product Innovations to Capture a Higher Customer Base
The major firms are focused on adopting a variety of strategies including partnerships, collaboration and merger to further establish themselves in the global ready-to-drink alcoholic beverages market. However, the prime focus is on product innovations as well as new launches to not only foster brand recognition but also gain a wider customer base in the fiercely competitive industry.
The key points covered in the study rtd alcoholic beverages market revenue, assessing primarily the top challenges, barriers and drivers affecting the market size. MRFR outlines the base year, projected period as well as the size during the given period. The market study also comprises some of the key developments post the COVID-19 outbreak and the effects of the novel coronavirus and the subsequent lockdown on the market. Apart from comprehensive market segmentation, the report also throws light on the latest business scenario covering the expected as well as the historical value, in terms of volume and value, technological developments, and the top factors inducing market growth. Besides, the well-known companies and the key strategies adopted by them to stay relevant in the industry are also profiled in the MRFR report.
Scope of the Report
The scope of the report covers the annual average growth rate for rtd alcoholic beverages, with major focus on the size, and a few segments like type, packaging type and distribution channels as well as the key regions.
Global RTD Alcoholic Beverages Market, By Type
Global RTD Alcoholic Beverages Market, By Packaging Type
Global RTD Alcoholic Beverages Market, By Distribution Channel
Frequently Asked Questions (FAQ) :
RTD alcoholic beverages market is projected to grow at a 3% CAGR between 2019-2024.
Europe is expected to dominate the RTD alcoholic beverages market.
RTD alcoholic beverages market is predicted to touch USD 32 billion by 2024.
Rum will lead the RTD alcoholic beverages market.
Bottles will dominate the RTD alcoholic beverages market.