The global ready-to-drink cocktails market was valued at USD 714.9 million in 2020 and is expected to grow at a CAGR of 12.1% during forecast period. The growth of ready-to-drink cocktails industry is primarily driven by the changing consumer lifestyle choices to enhance health and the ongoing trend of responsible drinks, coupled with the robust penetration of e-commerce for fulfilling the market demand for drinks through the online sales channel. Furthermore, the continual rise in the accessibility of natural, keto-friendly, and gluten-free RTD cocktails is promoting consumers to opt for such products, which, in turn, is expanding the implementation of ready-to-drink cocktails globally.
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The proliferation of ready-to-drink cocktails is rising at a significant pace rate considering the global scenario. Consumers around the world, particularly in developed countries, have now become more health-conscious, thereby demanding a convenient form of ready-to-drink alcoholic. These typically include alcopops and ready-to-drink cocktails. During 2019-2020, the 10-key market operating in ready-to-eat drinks (includes the U.S., the U.K., South Korea, Canada, China, Japan, Brazil, Mexico, South Africa, and Spain) has gained nearly 2,000 new RTD products. These include FABs, premix cocktails, long cocktails, and hard seltzers. As the RTD industry continues to expand, category evolution is primarily driven by factors like developments in alcohol bases and first-class product offerings.
Among them, RTD cocktails are considered the ultimate convenience as they are available in varied flavors, like cranberry, orange, lemon, and passionfruit. These ready-to-drink cocktails have low alcoholic content, usually ranging from 4-7%. Therefore, low Alcohol by Volume (ABV) beverages have been gaining considerable traction over the coming years, which, in turn, supporting the development of the global ready-to-drink cocktails industry. Food & beverage manufacturers are further supporting the adoption of the ready-to-drink cocktails by making substantial innovations in tastes of such drinks and ethnic flavors, predominantly used by a larger customer base mainly for taking the health benefits.
As per Europe’s data & trends on the food & drinks industry 2019, the industry reported a total turnover of about USD 1407.2 billion in 2017, up from USD 1319.8 billion since 2016. While Europe is the major region in the food & drink industry, followed by Asia and Latin America. In 2019, France was the leading country in terms of the number of companies operating under food & drink industry, which is valued at around 54,643 in 2017, followed by Germany (23,531), Italy (56,400), and United Kingdom (10,352). This, in turn, is supporting the market demand for ready-to-drink cocktails industry in the region.
The market is primarily segmented on the basis of type, packaging, distribution channel, and region.
By Distribution Channel
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In the ready-to-drink type segment, the spirit-based type holds the most leading position in the global ready-to-drink cocktails industry in 2020 and is likely to uphold its dominance in the forecasting years. The spirit-based cocktails generally contain up to 5% alcohol combined with the additional ingredients such as juices, and these are presented with a range of flavors in the packaging for single-serve. Flavors like rum, tequila, vodka, rum, and gin are the frequent savors often used in the preparation of spirits. Increasing health concerns among the population is also a major driving factor that leads to the market demand for low alcoholic-based flavored beverages, creating the segment growth globally.
Whereas the wine-based type segment is anticipated as the second-fastest growing segment between the years 2021 to 2028. Numerous populations remark wines to be better than malts and spirits in terms of health benefits, which drives the segment growth. As wines contain fruit juices such as lemon, oranges, grapefruit, mango, berries, and many others, that may attract large groups of individuals in the near future. It also resonates with the varying lifestyle trends among the consumers that moves towards a healthy routine by swapping to drinks contain low ABV content.
Among the ready-to-drink distribution channel segment, the segment of supermarket/hypermarket is likely to spot the leading position in the global ready-to-drink cocktails industry because of the high inclination of consumers for grocery shopping from the convenience stores, specialty stores, supermarkets. The significant distribution channels of supermarkets and hypermarkets across the globe, such as Walmart and Target, are leading the segment, which further boosts the segment growth.
The online store's segment of ready-to-drink cocktails is expected to proliferate at a lucrative rate due to the shifting behavior of consumer’s shopping in the forecasting period. Registration of national chains like Kroger’s in the U.S. and local grocery stores leads to increasing consumer preference for online platforms may encourage segment development. As well as shifting behavior of consumers for shopping is a key driving factor for segment growth in the forecasting years.
Geographically, North America dominated the global industry for ready-to-drink cocktails market and accounted for the largest share in terms of revenue due to the rising consumer preference towards flavored drinks and growing innovations by manufacturers concentrating the taste of flavored drinks in the region.
Additionally, the growing trend of retailing ready-to-drink cocktails through online distribution channels, particularly e-commerce platforms such as Walmart, Amazon, and others, is expected to drive ready-to-drink industry regional growth. According to the U.S. Census Bureau, in 2020, the total retail sales through online platforms of food & beverage products are valued at USD 3,347 million in Q1, 2020 and are expected to increase to USD 6,912 in the same period of 2021. Thus, the market demand for ready-to-drink cocktails from this region is continually growing at a rapid pace considering the global scenario.
In Europe, the global market has apprehended a considerable share of the total ready-to-drink cocktails market. Increasing taste & preference for ready-to-drink cocktails among millennials and growing health-conscious consumer-base towards healthy drinks are the few factors supporting the regional growth. In addition, few leading companies concerned with such low-alcoholic drinks are further making significant innovations through collaboration and production expansion strategies. For instance, in June 2020, Molson Coors (U.K.) completed the collaboration with Miami cocktail company for expanding the sales of their drinks and other products in the U.S. market. Such initiative bolsters the ready-to-drink region's growth.
Moreover, Asia Pacific is projected to observe the fastest CAGR in the total ready-to-drink cocktails industry. This is primarily attributed to the rapid growth in the distribution of alcoholic and non-alcoholic drinks through online channels, coupled with swift changes in consumer lifestyle towards healthy products. Furthermore, the extensive presence of prominent market players coupled with their focus to meet the innovations in such ready-to-drink cocktails offered by the developed market is further likely to aid the market to grow at a significant rate in the upcoming days, followed by the Latin and South American countries.
Some of the major players operating the global ready-to-drink cocktails market include Anheuser-Busch InBev, Asahi Group Holdings Ltd., Bacardi Limited, Biosint S.p.A., Brown-Forman, Diageo plc, Halewood Wines & Spirits, Manchester Drinks Company Ltd., Pernod Ricard, Shanghai Bacchus Liquor Co., LTD, Suntory Holdings Limited.
Market size value in 2020
USD 714.1 Million
Revenue forecast in 2028
USD 1550.4 Million
12.1% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million and CAGR from 2021 to 2028
By Type, By Packaging, By Distribution Channel, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Anheuser-Busch InBev, Asahi Group Holdings, Ltd., Bacardi Limited, Biosint S.p.A., Brown-Forman, Diageo plc, Halewood Wines & Spirits, Manchester Drinks Company Ltd., Pernod Ricard, Shanghai Bacchus Liquor Co., LTD, Suntory Holdings Limited