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The ready to drink (RTD) alcoholic beverages market size is estimated to grow by USD 8.02 billion at a CAGR of 5.81% between 2022 and 2027. This growth is driven by several factors, including the growing demand for ready-to-drink (RTD) pre-mixes, the uptick in mergers and acquisitions, and the escalation in marketing and promotional initiatives. These elements collectively fuel market expansion, indicating a burgeoning consumer interest in convenient, pre-mixed beverages. The increasing demand for RTD pre-mixes underscores a broader trend towards convenience and on-the-go consumption. Additionally, the rise in mergers and acquisitions suggests a landscape ripe for consolidation and strategic partnerships. Moreover, the uptick in marketing and promotional activities reflects a competitive environment where brands are vying for consumer attention and market share.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market report extensively covers market segmentation by packaging (bottles, cans, and others), distribution channel (off-trade and on-trade), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
The market share growth by the bottles segment will be significant during the forecast period. In the global RTD alcoholic beverages market, bottles are a preferred choice for packaging. Bottles have several benefits in terms of practicality, toughness, and aesthetics, which have helped them dominate the packaging type segment in the market in focus.
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The bottles segment was valued at USD 11.01 billion in 2017. With rising demand for premium and craft RTD alcoholic beverages packaged in bottles, the market scenario for bottles in the global RTD alcoholic beverage market has been favorable. Consumers' desire for visually appealing packaging and the ease of consuming RTD alcoholic beverages through bottles product is driving this trend. In addition, as bottles are recyclable, they are considered more environmentally friendly than other packaging materials, including cans or plastic containers. Such factors will increase segment growth during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Factors such as the increasing demand for low-calorie and low-alcoholic RTD alcoholic beverages will help the regional market grow steadily. However, the numerous stringent government regulations related to the sales and marketing of RTD alcoholic beverages are one of the key challenges to the growth of the market. In addition to this, increasing awareness among consumers about the harmful effects of alcoholic beverages and the high calories that they contain is also another major growth barrier for the regional market in focus.
The market is witnessing a surge in popularity, driven by the rising demand for spirit-based RTDs, hard seltzers, and high-strength premixes. Consumers are increasingly drawn to the convenience and variety offered by malt-based and wine-based RTDs, especially those featuring citrus, berry, and tropical flavors. This trend is further fueled by the global consumer shift towards low-sugar options and the growing appeal of mixed fruit flavors. The market's growth is also supported by strategic network layouts and product endorsements, particularly in emerging economies. RTDs are becoming favored choices among consumers seeking convenient yet flavorful beverage alcohol products across various occasions. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for RTD pre-mixes is the key factor driving the growth of the market. Demand for RTD premixes is increasing primarily due to product-related convenience factors. Forbes reports that sales of his cocktail/spirit-based RTDs increased from USD 1.2 billion in 2020 to USD 1.6 billion in 2021, boosting supplier revenue. This demand comes primarily from consumers who have busy lifestyles and are often under pressure due to busy schedules. The lower-calorie and alcohol content in RTD (Ready-to-Drink) pre-mixes does indeed make them a suitable and healthier option, especially among health-conscious consumers. This trend is particularly noticeable in the energy drinks and RTDs category, where global consumers are increasingly opting for healthier alternatives, including dairy beverages, particularly in emerging economies. Introducing new variants, flavors, and packaging formats will also help increase the inclination toward evolving RTD pre-mixes options during the forecast period.
Dark spirits-based RTD mixes contain dark Scotch, rum, and Bourbon whiskey as the base. Dark spirits-based RTD pre-mixes witness a higher demand during winter. Light spirit-based RTD pre-mixes have liqueur, light rum, vodka, and gin as the base. The demand for RTD pre-mixes is higher during the summer season. Innovation in terms of packaging, flavor, and ingredients is expected to fuel the growth of this market segment. Owing to these reasons, the market in focus is expected to witness considerable growth during the forecast period.
The growing popularity of craft and artisanal beverages is the primary trend in the market growth. Growing consumer demand for distinctive, high-quality beverage options with distinctive flavors and ingredients such as botanicals, herbs, fruits, and spices is reflected in a growing preference for artisan crafted RTD alcoholic beverages. They are frequently produced in small batches using high-quality or locally sourced ingredients such as artisanal spirits, organic produce, unique botanicals, and specialty spices. A desire for reliability and an association with the origin of the product and its manufacturing process is the trend`s driving force. Craft and artisanal RTD alcoholic beverages are frequently marketed as a higher-end option with a premium price point, luring customers looking for a more upscale drinking experience.
As producers experiment with various ingredients and production methods to produce distinctive products that differentiate themselves in a market that is becoming increasingly competitive, the trend has also resulted in the proliferation of fresh and inventive flavor combinations. Between 2023 and 2027, consumer demand for craft and artisanal beverages is anticipated to increase, driven by the premiumization trend and consumers' growing desire for distinctive and high-quality goods. Therefore, this trend is expected to drive the demand for the market in focus during the forecast period.
Supply chain disruptions are a major challenge to the growth of the market. The market can be a major challenge for manufacturers due to supply chain disruptions. Fluctuations in raw material prices, transportation costs, and raw material availability can impact manufacturing costs and overall sector profitability. For example, sharply rising raw material and transportation costs can reduce profit margins and make it difficult for manufacturers to maintain profitable sales and competitive prices.
Delays or even temporary halts in producing alcoholic beverages that are RTD can result from delays in the availability of components, such as shortages or delays in the delivery of crucial components. These difficulties may make it more difficult for manufacturers to satisfy consumer demand, maintain a steady market supply, and manage their manufacturing and distribution processes efficiently, potentially leading to lower sales and market share. Henceforth, these factors can impede the growth of the market in focus during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
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.
Accolade Wines Australia Ltd.: The company offers RTD alcoholic beverages such as Prosecco Spritz, Rose Spritz, Prosecco Spritz with orange bitters, and Cuvee Spritz under the brand Yarra Burn.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing a surge in demand, particularly for high strength premixes and spiced-flavored options, driven by the preferences of Gen-Z and Millennials. This trend aligns with the growing focus on health and wellness, prompting innovation and brand building efforts in the industry. However, the market faces challenges such as heavy taxation, negative health effects, and stringent rules and regulations, including those related to advertising and anti-alcohol campaigns. Despite these challenges, the market continues to expand, driven by the convenience of RTDs in hectic lifestyles and the incorporation of functional ingredients like citrus fruits and fruit juices. The sector's growth is also fueled by new product developments, especially in diversified flavors and RTD cocktails, catering to consumer preferences for healthy beverage products and offering convenient options for social gatherings and house parties.
Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.81% |
Market growth 2023-2027 |
USD 8.02 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.87 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accolade Wines Australia Ltd., Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Bacardi Ltd., Brown Forman Corp., Campari Group, Carlsberg Breweries AS, Constellation Brands Inc., Diageo Plc, Halewood International South Africa Pty Ltd., Heaven Hill Sales Co., Heineken NV, Manchester Drinks Ltd., Mark Anthony Brands International Unlimited Co., MIKES HARD LEMONADE Co., Molson Coors Beverage Co., Pernod Ricard SA, SHS Drinks, The Boston Beer Co. Inc., and United Brands LLC |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, market growth and trends, 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Packaging
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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