CAGR: 5%Current Market Size: USD 21.8 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022
The global ready-to-drink cocktails market is expected to grow from USD 21.8 billion in 2022 to USD 32.2 billion by 2030, at a CAGR of 5% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the rising demand for ready-to-drink beverages.
Cocktails that are ready to drink are packaged beverages which are ready to drink immediately after being opened. There are several types of ready-to-drink cocktails. Non-alcoholic beverages are made from dairy & non-dairy drinks, and alcopops are created by combining alcohol with fruit juices or soft drinks. The low alcohol content of cocktail drinks ranges from 4%-7%, making them a preferred alcoholic beverage as compared to neat alcoholic beverages due to their low alcohol content. The demand for these beverages increases as new variants with different flavours and compositions are introduced, as well as the added benefits of being healthier, organic, gluten-free, etc. There are many advantages to ready-to-drink cocktails, including easy preparation, variety of choices, accessibility, and affordability. New and exciting flavours of ready-to-drink cocktails are in high demand among consumers, creating a huge opportunity for growth. Introducing new flavours & new product development and investing more in R&D are also opportunities, as is the growing trend of online sales of ready-to-drink cocktails. A number of factors may hamper market growth, such as religious or cultural beliefs in some countries, heavy taxes and duties, and the negative effects of alcohol on health.
Sample Request: - Global Ready to Drink Cocktails Market
Market Dynamics:
Drivers:
These products gained popularity because they were easy to prepare, fast, easy to access, affordable, and available in a variety of flavours, with low alcohol content. Retailing during and after the pandemic is a significant opportunity for the players, and the increasing influence of the west on the Asian Pacific market is creating a greater demand for ready-to-drink cocktails.
Restraints:
It is often overlooked by consumers that ready-to-drink cocktails have low alcohol content, but this material fact is sometimes ignored. With this ignorance and lack of proper messaging about the composition and benefits of ready-to-drink cocktails, the market growth could be hampered. It can be further exacerbated by some faiths around the world, whereby alcohol consumption is equated to committing sin in their teachings.
Opportunities:
Increasingly, people are relying on ready-to-eat and ready-to-drink products because they are convenient, quick, affordable, and accessible to them because of their busy schedules. Ready-to-drink cocktails have seen a positive development in recent years. Due to their low alcohol content and wide variety of flavours, they will further stimulate market growth, as health-conscious consumers will gravitate towards these products.
Challenges:
Due to heavy duties and taxation, the growth of the ready-to-drink cocktail market would be hindered, which will raise the retail price, reducing sales considerably. A growing number of anti-alcohol campaigns, along with stricter rules and regulations governing the advertising of alcohol products, is adversely affecting the growth of the market.
Segmentation Analysis:
The global ready-to-drink cocktails market has been segmented based packaging, type, distribution channel, and region.
By Packaging
The packaging segment includes cans and bottles. The bottles segment led the largest share of the ready-to-drink cocktails market with a market share of around 65% in 2022. In order to maintain their freshness, cold food products are stored at a temperature between 0 and -5, especially fruits and vegetables. Furthermore, the chilled food sector is one of the fastest-growing segments of the food industry. The convenience ready-to-eat meals offer consumers, as well as the rising demand from restaurants and hotels, are encouraging consumers to consume chilled meals.
By Type
The type segment includes malt-based, spirit-based and wine-based. The spirit-based segment led the largest share of the ready-to-drink cocktails market with a market share of around 48% in 2022. It is a market that is growing because of its varying flavours, low alcohol content, and growing awareness of health and wellness among consumers around the world. The most important ingredient in this cocktail is whiskey, rum, and tequila. In terms of revenue, gin & tequila account for the highest share, containing only 5% of alcohol and mixing it with juices. In accordance with the MMR study, spirits make up 45% of all recorded alcohol consumption.
By Distribution Channel
The distribution channel segment includes online, supermarkets/hypermarkets, and liquor stores. The supermarkets/hypermarkets segment led the largest share of the ready-to-drink cocktails market with a market share of around 46% in 2022. Around 60% of global revenue will come from supermarkets/hypermarkets by 2021. Supermarkets/hypermarkets are large and widely distributed, with a higher consumer reach than others. Consumers prefer shopping at a one-stop shop, and its convenience is the reason it is so successful.
Global Ready-to-Drink Cocktails Market- Sales Analysis.
The sale of ready-to-drink cocktails is expanded at a CAGR of 4.8% from 2016 to 2022.
A significant portion of alcoholic RTDs is spirit-based, malt-based or wine-based. Also known as alcopops, there are also premixes considered to be high-strength beverages, boosting the market growth.
The sudden outbreak of the pandemic has led many consumers to change their buying habits and turn to online shopping to avoid contracting the virus. In addition, retailers are beginning to realize the value of developing an e-commerce strategy in order to reach more consumers, and are turning to online ordering and delivery platforms to do so.
In addition to the increasing popularity of ready-to-eat and ready-to-drink products, the consumer's purchasing power parity is increasing and there is a greater interest in healthy lifestyles and responsible drinking. Ready-to-drink cocktails are driving the market because of their convenience and wide range of flavours; increasing client service quality will likely spur the introduction of more product flavours and options.
Thus, owing to the aforementioned factors, the global ready-to-drink cocktails market is expected to grow at a CAGR of 5% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the ready-to-drink cocktails market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North American region dominated the ready-to-drink cocktails market and held a 39.1% share of the market revenue in 2022.
Global Ready-to-Drink Cocktails Market - Country Analysis:
Germany's ready-to-drink cocktails market size was valued at USD 2.3 billion in 2022 and is expected to reach USD 3.45 billion by 2030, at a CAGR of 5.2% from 2023 to 2030.
A number of key factors are driving the growth of RTD beverages, including consumer awareness of wellness, demand for clean labels, and high preferences for functional drinks. Throughout the country, ready-to-drink beverages have grown in popularity as schedules have become increasingly hectic, including coffee, tea, and functional beverages such as energy drinks.
China’s ready-to-drink cocktails market size was valued at USD 2.4 billion in 2022 and is expected to reach USD 3.6 billion by 2030, at a CAGR of 5.4% from 2023 to 2030.
There is a high demand for ready-to-drink products in China due to their convenience, as it requires no preparations, unlike mixed alcoholic drinks. A local brand, RIO, holds the largest market share, but in recent years, a number of new players have entered the market. As a result, sales and competition have increased.
India's ready-to-drink cocktails market size was valued at USD 1.9 billion in 2022 and is expected to reach USD 2.8 billion by 2030, at a CAGR of 5.3% from 2023 to 2030.
Due to the easy availability and rising disposable incomes of people in the country, dairy products will continue to drive this market over the Projection period. With the help of freezing milk, bacteria's metabolic activity is slowed down, which helps maintain the quality of the product while transporting it through regular supply channels without the need for extra cold chain equipment or preservatives.
Key Industry Players Analysis:
To increase their market position in the global ready-to-drink cocktails market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
5% |
Market Size |
21.8 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Packaging, By Type, By Distribution Channel, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Diageo plc, Manchester Drinks Company Ltd., Brown-Forman, Bacardi Limited, Asahi Group Holdings, Ltd., Anheuser-Busch InBev, Halewood Wines & Spirits, SHANGHAI BACCHUS LIQUOR CO., LTD., PernodRicard, and Suntory Holdings Limited. |
By Packaging |
|
By Type |
|
By Distribution Channel |
|
Regional scope |
|
Scope of the Report
Global Ready-to-Drink Cocktails Market by Packaging:
Global Ready-to-Drink Cocktails Market by Type:
Global Ready-to-Drink Cocktails Market by Distribution Channel:
Global Ready-to-drink Cocktails Market by Region:
Global ready-to-drink cocktails market is expected to reach USD 32.2 billion by 2030, at a CAGR of 5% from 2023 to 2030.
Rising demand for the ready-to-drink cocktails and hectic schedules are boosting the market growth.
North American region will witness more growth in the ready-to-drink cocktails market.
Based on the distribution channel, the global ready-to-drink cocktails market has been segmented into online, supermarkets/hypermarkets, and liquor stores.
Leading players in the ready-to-drink cocktails market are Diageo plc, Manchester Drinks Company Ltd., Brown-Forman, Bacardi Limited, Asahi Group Holdings, Ltd., Anheuser-Busch InBev, Halewood Wines & Spirits, SHANGHAI BACCHUS LIQUOR CO., LTD., PernodRicard, Suntory Holdings Limited among others.
Political Factors- Uncertainty in the political environment is defined by the frequency with which government policies and regulations change. Because of the continual ambiguity, policy changes have an impact on company performance and make decision-making more complex. The ready-to-drink cocktails market should actively watch the political landscape and alter its strategic priorities as needed to quickly adapt to changing policies. Democracy is the foundation of the current type of government that favors the activities of the ready-to-drink cocktails market. The ready-to-drink cocktails market can benefit from the financial freedom given by a democratic government system that promotes initiative and free trade.
Economical Factors- The ready-to-drink cocktails market should evaluate the economic growth rates of the various nations when considering whether to develop abroad. Nations with strong economic growth rates have more possibilities for pursuing long-term growth objectives. When the economy grows slowly, consumer spending becomes more conservative, which has a direct impact on the revenue growth of the ready-to-drink cocktails industry. Rising inflation diminishes the purchasing power of money and discourages people from spending on goods and services, which may have a negative impact on the ability of the ready-to-drink cocktails market to increase revenue.
Social Factor- Consumption trends and economic challenges are inextricably linked. When customers have more discretionary income and are prepared to spend more on goods and services to improve their lifestyles, the ready-to-drink cocktails market benefits from exciting growth potential. This is because it is easier to introduce new products and services to these clients, and the prospects of revenue growth are also higher. In order to adjust its marketing mix approaches, the ready-to-drink cocktails market must closely evaluate the consumption/spending patterns and tastes of modern consumers, who are increasingly demanding.
Technological Factors- The rate and trajectory of technological innovation can have an impact on the market and industry as a whole. By investigating upcoming technological innovation trends, the ready-to-drink cocktails market will be able to comprehend the rate of new product creation, the length of the product life cycle, and the distinctive features that consumers prefer. By doing research into consumers' attitudes about cutting-edge, new digital technologies, the ready-to-drink cocktails market can assess whether converting to e-commerce will be more advantageous than having a physical site. If competitors use automation technology to minimize costs, the ready-to-drink cocktails industry may be driven to convert from manual to automated processes, especially if the general populous of that society is tech-savvy.
Environmental Factors- Businesses are under pressure to reduce environmental impact as a result of stringent environmental legislation in a variety of countries. In response, the ready-to-drink cocktails market should implement ethical production methods, promote ethical consumption among its target market, work to improve its brand's sustainability reputation, and ensure full compliance with local and international environmental laws, as failure to do so may result in severe, reputation-damaging criticism from relevant stakeholders. The current weather conditions may have a significant impact on the ability to handle the flow of materials and the finished product. This has an impact on the final product's delivery dates.
Legal Factors- Employment law refers to a large area of laws that safeguard employees' rights, such as their right to a fair wage, equality, equity, inclusion, fairness, and physical and mental safety. While some countries lack effective enforcement of employment laws, others impose hefty penalties for breaking any of the listed employee rights. While entering or operating in such countries, the ready-to-drink cocktails market should ensure the safety of the working environment. Appropriate systems must be in place to prevent both direct and indirect discrimination.
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