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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 companies, 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 companies enhances innovation and broadens product offerings featuring gin, vodka, and other alcoholic drinks. 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 ready to drink cocktails 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.
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.
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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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Furthermore, the presence of prominent companies in the region 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.
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 such as vodka and other premium spirits.
Rise in collaboration between market companies is notably driving market growth. The ready-to-drink cocktails market continues to evolve, with an emphasis on flavored, low-alcohol content beverages catering to health-conscious consumers. Spirits such as gin, tequila, vodka, whiskey, and rum, as well as wine-based cocktails, are popular choices. Fruits like grapefruit, oranges, passionfruit, lemons, mangoes, and berries add natural flavors. Bottle packaging includes aluminum bottles, which are in short supply, as well as glass bottles and cans. The market for these alcoholic beverages is expanding, with online sales and collaborations between brewing giants and distributors.
Calories and carbohydrate content are key considerations, with a growing demand for gluten-free beverages. Product packaging is essential, with e-commerce and convenience stores driving demand for convenient, portable options. The market for ready-to-drink cocktails is dynamic, with new players and collaborations shaping the landscape.
Rising number of product launches with new flavors is the key trend in the market. The ready-to-drink (RTD) cocktails market caters to health-conscious consumers seeking spirit-based and wine-based cocktails with low alcohol content. These flavored drinks, featuring combinations of one or more spirits and natural ingredients like ginger, raspberry, lime, mango, grapefruit, oranges, passionfruit, and berries, appeal to a broad demographic. Brands continually innovate, launching new organic, gluten-free, and low-calorie options to meet evolving consumer preferences. Bottle packaging for these beverages includes aluminum shortage-mitigating alternatives such as glass bottles, cans, and plastic containers. The market's growth is driven by the increasing popularity of spirit-based cocktails, with vodka, gin, tequila, whiskey, rum, and wine-based cocktails leading the trend. Calorie-conscious consumers opt for beverages with fewer calories and carbohydrates, such as wine spritzers and beer alternatives like White Claw.
Brewing giants and e-commerce platforms have entered the market, offering convenience to consumers through online sales and easy access to a wide range of flavors. Product packaging plays a crucial role in attracting consumers, with brands focusing on eye-catching designs and eco-friendly materials. The market's expansion is also fueled by the availability of these beverages in various channels, including convenience stores, wine shops, and supermarkets. In summary, the ready-to-drink cocktails market is experiencing significant growth due to the increasing demand for low-alcohol, flavored, and convenient beverage options. Brands are responding by launching new, innovative products and focusing on eco-friendly packaging to meet the evolving needs of health-conscious consumers.
Different taxation for RTD cocktails is the major challenge that affects the growth of the market. The ready to drink (RTD) cocktail market has witnessed a trend towards the launch of higher-priced spirit-based flavored drinks, owing to the tax structures in various countries such as the US, Canada, and India. These beverages, which contain low alcohol content, are increasingly popular among health-conscious consumers. Gin, tequila, vodka, whiskey, rum, and other spirits are used to create these cocktails, leading to higher prices due to excise taxes. In contrast, wine-based cocktails, like those made with grapefruit, oranges, passionfruit, lemon, mango, and berries, are also subject to higher taxes and fewer distribution options in certain regions.
Bottle packaging for these RTD cocktails is a significant consideration, with an aluminum shortage leading to a shift towards glass bottles and cans. Calorie and carbohydrate-conscious consumers prefer these beverages, which are often gluten-free, over traditional alcoholic beverages like beer and wine spritzers. Brewing giants and convenience stores are major distributors of these products, while e-commerce platforms and wine shops offer online sales. Product packaging plays a crucial role in attracting consumers, with natural flavors and organic, gluten-free beverages gaining popularity. Brands have capitalized on this trend, offering a range of flavors in convenient, easy-to-carry cans.
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 ready to drink cocktails 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 ready to drink cocktails 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. |
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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 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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