The worldwide RTD Spirits Market size is projected to hold a CAGR of 4.05% during the forecast period of 2020 to 2027. Further, the global market is estimated to reach USD 6.23 Million during the analysis period of 2027.
There are various beverages like rum, vodka, beer, and whiskey comprised of the RTD spirits. As compared to any other alcoholic beverages, the RTD spirits consist of lower alcohol content. It attracts people who like to consume less alcohol content beverages. These drinks also provide a wide range of spirits infused with rose, ginger, lavender, and cocktail, attracting consumers to alcoholic beverages. Therefore, the demand for RTD spirits is increasing across the world, especially among health-conscious consumers. Moreover, the increasing demand for recreational activities among the population results in a sudden boost of the foodservice industry. Hence, this factor is expected to boost up the growth of the Market size.
In addition, the availability of keto-friendly RTD spirits, organic and gluten-free RTD spirits is encouraging the consumers of different parts of the world to opt for these products. In the RTD Spirits Market trend, some important intended audiences are traders and distributors of RTD spirits, growers and processors of RTD spirits, raw material suppliers, research and development institutes, nationalized laboratories, and potential investors. These intended audiences are contributing to the global market by playing their role perfectly.
COVID-19 Impact Analysis
Due to the COVID-19 outbreak, many marketing industries have lost their investors and got affected negatively. The RTD Spirits Market was also one part of this industry. The global market has experienced a lack of workforce, transportations, and many more due to the lockdown in several countries.
For instance, the Market size is further projected to witness market growth after a step fall. During the pandemic, the market players have focused on the key strategies and sustainability to show their present status in the industry.
The demand for the market is driving its growth in the forecast period due to the rapidly rising youth population and growing disposable income of the people in the world. In addition, the changing lifestyle in developing countries and rising acceptance for alcoholic beverages among the demography is projected to thrive the RTD Spirits Market share in the future years.
In 2018, the United States Alcohol and Tobacco Tax and Trade Bureau (TTB) had mentioned a $1.07 tax rate per wine gallon that is coming between 16% and under alcohol by volume and $3.15tax rate per wine gallon that is coming between over 21 - 24% alcohol by volume. Hence, this initiative is enhancing the growth opportunities for the Market trend.
The RTD spirits market trend has more growth opportunities due to infinite flavors and rising acceptance of alcoholic beverages among consumers.
Furthermore, the Market share is projected to grow in the analysis period due to the growing disposable income of the people and changing lifestyles in developing countries. Hence, this brings more growth opportunities for the market players and manufacturers to expand the global market.
The RTD spirits market might hamper the market growth potential because of the heavy tax duties on RTD spirits across various countries.
Moreover, the unavailability of raw material and infinite flavors can hinder the growth of the Market.
The temporary suspension of the food and beverage industry by the government of several countries during the global coronavirus pandemic was one of the major marketing challenges for the Market.
Apart from that, the high cost of RTD Spirits can be one of the biggest challenges for the global market.
Cumulative Growth Analysis
The RTD Spirits Market size has been expanding significantly in the past few years. It is further estimated to generate a higher market size in terms of value by the end of the forecast period.
The regions like North America, Asia-Pacific, Europe, and South America are the strongest pillar of the Market. The global market players are present to strengthen the global market with their unique ideas and strategies.
The RTD Spirits Market analysis explains that the worldwide market is segmented based on type, distribution channels, packaging type, and region.
The market has been segregated into rum, whiskey, vodka, and others based on the type segment.
These segments contribute to the global market by generating a higher share in the forecast period.
The market has been segregated into non-store-based and store-based based on the distribution channel segment.
Further, the store-based segment has been sub-segregated as specialty stores, supermarkets and hypermarkets, and many others.
The RTD spirits market has been bifurcated into cans, bottles, and others in the packaging type segment.
In the present scenario, both bottles and cans are gaining the attention of consumers based on their priorities and functionality. However, the demand for the cans segment is growing in the analysis period because of the increasing demand for easy-to-carry and convenient, on-the-go packaging.
Depending on the regional segment, the RTD spirits market has been classified into North America, Asia-Pacific, Europe, and the rest of the world.
Further, the European regional market is classified into France, Italy, the UK, Germany, Spain, and the rest of Europe. The Market of North America is segmented into Mexico, the US, and Canada. In addition, the Asia-Pacific market is divided into Japan, Australia, and New Zealand, China, India, and the rest of Asia-Pacific. Apart from that, the rest of the world includes South America, Latin America, and Middle East Africa.
The RTD Spirits Market analysis highlights that the regional markets of different regions play an important role in enhancing the market growth in the upcoming years.
The North American Market is projected to dominate the global market because of the growing demand for RTD spirits in the North American foodservice industry. Thus, the growth of the Market in the North American region relies on the high spending capacity of the regional population. Moreover, the Asia-Pacific regional market generates a robust growth rate by creating a higher Market share during the research period. This region is overwhelming because of the increasing spending capacity for recreational activities and growing disposable income in the region. The rest of the world is predicted to expand steadily because of the increasing foodservice industry in Brazil, Argentina, and Chile. Another major factor for the growth of this regional market is the rising disposable income in different countries of South America.
Competitive Landscape Analysis
As per the RTD Spirits Market trend report, prominent market players are playing an essential role in enhancing the growth of the global market in the analysis period. These market players include:
In the RTD spirits market, the market players focus more on the partnership, product launch, innovation, and promotion to show their presence in the global market. Hence, this kind of initiative is propelling the market growth in the forecast period.
According to RTD Spirits Market analysis, the current global market shows higher growth potential in terms of value and volume. In this report, extensive information on business developing strategies and growth strategies have been discussed, which are helpful for the RTD Spirits industry players to tackle the major challenges in the industry.
Moreover, the Market analysis explains an in-depth market evaluation by emphasizing information on different aspects covering market dynamics such as drivers, restraints, threats, opportunities, trends, and industry news related to developments. Apart from that, this report has included the market segmentation, regional analysis, competitive analysis, recent developments, and covid-19 analysis to measure the RTD Spirits Market's growth performance.
By Distribution Channel
Frequently Asked Questions (FAQ) :
RTD spirits market is projected to grow at a 4.11% CAGR between 2020-2027.
The Asia Pacific is expected to dominate the RTD spirits market.
RTD spirits market is predicted to touch USD 6.23 billion by 2024.
Different types of RTD spirits include vodka, rum, whiskey, and others.
Heavy tax duties may limit the RTD spirits market growth.