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The ready to drink cocktails market size is forecast to increase by USD 2.20 billion at a CAGR of 12.54% between 2023 and 2028. The market's growth is driven by several factors, including an increase in collaboration between market vendors, rising health concerns among consumers, and a high preference for convenience among consumers. These elements collectively propel market expansion by fostering strategic partnerships, addressing consumer health priorities, and catering to modern lifestyle demands. The rise in collaboration between market vendors enhances innovation and broadens product offerings. Simultaneously, growing health concerns among consumers drive demand for healthier, more nutritious options. Additionally, the high preference for convenience underscores the need for easily accessible and time-saving products. Thus, the interplay of these factors shapes the landscape for the anticipated growth of the market.
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The market is thriving due to shifting consumer lifestyle choices towards convenience and health consciousness. These alcohol by volume (ABV) beverages cater to busy lifestyles with ready-to-eat (RTE) options that are also natural and flavorful. This segment of the beverage industry offers pre-mixed cocktails that are convenient for social gatherings or solo enjoyment, reflecting a preference for hassle-free drinking experiences. The Ready-to-Drink Cocktails market continues to innovate with new flavors and ingredients, appealing to a broad audience seeking quality and ease in their beverage choices.
The growing focus on health and fitness among modern consumers is driving the demand for low-calorie beverages, which is expected to contribute to the growth of the market. Beverage manufacturers are adapting to changing lifestyle trends and catering to the needs of health-conscious consumers by offering low-calorie RTD options.Ready-to-drink cocktails have become popular among health-conscious individuals, particularly millennials. Despite being made with fermented sugars, most gluten-free RTD cocktails contain only 100 calories and two grams of carbs.
In comparison, a typical beer contains around 150 calories and 15-30 grams of carbohydrates, making low-calorie RTD cocktails an appealing choice. Furthermore, gluten-free options are available in the market. Importantly, even though RTD cocktails like White Claw may contain fermented sugars, the total amount of added sugars is just two grams. In contrast, beverages like Mike's Hard Lemonade contain 32 grams of sugar per bottle. This growing consumer interest in health concerns is expected to drive the growth of the global RTD cocktails market throughout the forecast period.
Focused product packaging and design formats are a major trend in the market. Industry vendors are creating novel packaging and labeling styles, using upscale and innovative techniques to appeal to more customers and prolong product shelf life. Manufacturers are also developing lightweight and portable packaging, such as Tetra packs, bag-in-box, metal cans, PET bottles, and single-serve options, to satisfy the demand for on-the-go consumption.
Examples of recent product launches include Constellation brands' RTD boxed wine cocktails and Hard Rock International's grab 'n' go cocktails in 19.2-ounce cans. Stranger & Stranger also revamped its packaging with a simple yet elegant design as part of its re-branding strategy. This trend is projected to continue expanding during the forecast period.
The huge availability of substitute products is hindering market growth. RTD cocktails face competition from alcoholic drinks, soft drinks, and energy drinks. High-alcohol content alcoholic drinks are widely available and serve their purpose well, while soft drinks and energy drinks are considered healthier than RTD cocktails due to their lower alcohol content.
Additionally, substitute products are typically cheaper compared to RTD cocktails per individual consumption, providing another reason for their popularity. For example, a regular bottle of wine may cost around USD 15 for one person, while RTD cocktails may cost around USD 10 to achieve the same effect. Moreover, soft drinks and energy drinks are extensively promoted, making them more popular. Therefore, the availability of substitutes is expected to impede the growth of the global RTD cocktails market in the forecast period.
By Distribution Channel
The market share growth by the hypermarket and supermarket segment will be significant during the forecast period. Hypermarkets and supermarkets offer a variety of brands and stock-keeping units (SKUs) at competitive prices, which attracts more customers.
The hypermarkets and supermarkets segment was valued at USD 1.10 billion in 2018. Some of the factors considered while purchasing products from hypermarkets, supermarkets, convenience stores, and clubhouse stores are convenience, huge SKUs, and a wide brand variety. There is a growing consumer inclination toward RTD cocktails owing to busy lifestyles and hectic work schedules. These cocktails are convenient and easy to carry as manufacturers provide on-the-go packaging. The segment is expected to retain its dominance in the global market during the forecast period owing to the consumer preference to purchase these products from hypermarkets, supermarkets, convenience stores, and specialty stores in bulk quantity and store them at their homes.
North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market growth and trends that shape the market during the forecast period.
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Distilled Spirits Council of the United States (DISCUS), sales increased by 39% in 2021 as consumers spent on premium spirits during the COVID-19 lockdowns, which led to a surge in at-home consumption of these cocktails. Furthermore, the presence of prominent vendors in the region, such as Brown Forman Corp., Crook and Marker LLC, Cutwater Spirits, LLC, Dogfish Head Craft Brewery Inc., and Mikes Hard Lemonade Co. also drives the growth of the regional market. Additionally, the gradual decline in the excise tax on alcohol and the increasing popularity of low-alcoholic flavored RTD cocktails have both contributed to an increase in alcohol consumption and expenditure in the US in recent years. Therefore, all these factors will boost the regional market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Anheuser Busch InBev SA NV - The company offers ready to drink cocktails with a portfolio of tasting flavors, including Lemonade, Mixed Berry Lemonade, and Watermelon Lemonade.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Bacardi Ltd., Becle SAB de CV, Brown Forman Corp., Campari Group, CAZADORES, Crook and Marker LLC, Diageo Plc, Hard Rock Drinks, House of Delola LLC, House of Monaco, Lucas Bols Amsterdam BV, Manchester Drinks Ltd., Molson Coors Beverage Co., NEXT CENTURY SPIRITS, Pernod Ricard SA, Snake Oil Cocktail Co., Suntory Holdings Ltd., The Boston Beer Co. Inc., VOSA SPIRIT LLC, and Manly Spirits Co.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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The market is flourishing, driven by the demand for flavored drinks with low alcohol content. Popular alcohol bases include gin, tequila, vodka, whiskey, rum, and wine-based cocktails. Consumers are drawn to spirit-based cocktails and wine spritzers with vibrant flavors like grapefruit, oranges, passionfruit, lemon, mango, and berries. The market addresses the need for organic, gluten-free beverages, and keto-friendly options. Bottle packaging faces challenges due to an aluminum shortage, increasing reliance on glass bottles and boxes. Brewing giants and wine shops are leveraging e-commerce and online store platforms to meet demand. These ready-to-eat drinks and premix cocktails offer health advantages, appealing to those mindful of alcohol-related health problems. The convenience of ready-to-drinks boosts their popularity in foodservices and mixing cocktails at home.
Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.54% |
Market Growth 2024-2028 |
USD 2.20 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.5 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Bacardi Ltd., Becle SAB de CV, Brown Forman Corp., Campari Group, CAZADORES, Crook and Marker LLC, Diageo Plc, Hard Rock Drinks, House of Delola LLC, House of Monaco, Lucas Bols Amsterdam BV, Manchester Drinks Ltd., Molson Coors Beverage Co., NEXT CENTURY SPIRITS, Pernod Ricard SA, Snake Oil Cocktail Co., Suntory Holdings Ltd., The Boston Beer Co. Inc., VOSA SPIRIT LLC, and Manly Spirits Co. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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