Ready To Drink Cocktails Market Size, Share & Trends Report

Ready To Drink Cocktails Market Size, Share & Trends Analysis Report By Type (Spirit, Wine, Malt), By Distribution Channel (Hypermarkets/Supermarkets, Online), By Packaging, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Dec, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-253-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 80

Report Overview

The global ready to drink cocktails market size was valued at USD 649.9 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 12.1% from 2020 to 2027. The growing demand for low content alcohol-based flavored drinks due to rising health concerns is anticipated to drive the market over the forecast period. These drinks offer a wide range of variety, such as ready to drink (RTD) cocktails infused with ginger, rose, and lavender, which makes them the most preferred alcoholic beverage among consumers. Premiumization of the product with improved flavors, taste, quality, and package design is further expected to drive the demand, thereby boosting the market growth.

The U.S. RTD cocktails market size, by type, 2016 - 2027 (USD Million)

Consumers have become more sophisticated with their choices and taste in alcohol, thus a rapid shift to RTD cocktails as a substitute for wine and spirits will augment market growth. Consumers are looking for premium products; thus, canned packaging is likely to gain popularity as it offers a premium look. As a result, the manufacturers have been trying to tap this market with more product launches in this format.

Furthermore, easy online distribution of RTD cocktails due to a lower level of alcohol and their convenient package design also provide growth opportunities to the market players. In terms of product, spirit-based cocktails emerged as the largest and the fastest-growing segment in 2019 owing to the distinct taste of these drinks. Spirit-based products are made from gin, tequila, whiskey, rum, and vodka. Gin and tequila-based products, in particular, have a high demand.

Asia Pacific is anticipated to emerge as the fastest-growing regional market in the coming years due to the growing demand for convenience products in Asian countries. In addition, changing lifestyles increased disposable income levels, and the influence of the western culture is likely to propel the product demand.

Type Insights

The spirit-based RTD cocktails segment accounted for the largest revenue share of 43.5% in 2019 and is anticipated to maintain its dominance over the forecast period owing to the distinct taste of these products. Spirit-based RTD cocktails have become popular among the consumer due to the availability of various flavors. This segment is also anticipated to register the fastest CAGR during the forecast period. Wine-based product segment accounted for the second-largest revenue share in 2019.

Consumers perceive wine as healthier than spirits and malts, which drives its demand as wine-based cocktails usually contain fruit juices, such as grapefruit, oranges, lemon, mango, and berries. Malt-based product segment is expected to grow at a substantial rate over the forecast period. These cocktails are much sweeter and don’t have a well-defined taste, which has resulted in their reduced consumption.

Packaging Insights

Bottle segment accounted for the largest revenue share of 58.5% in 2019. Initially, the Ready-to-Drink concept was launched in a bottle package design and became popular worldwide. The cans segment is expected to ascend at the fastest CAGR over the forecast period owing to growing consumer demand for convenience and ease-to-carry packaging. Cans are lightweight and compact, which makes them a popular packaging choice.

In addition, rising environmental concerns and easy recyclability of cans are also driving the demand for this kind of packaging. Innovation and improvisation are likely to be seen among the categories of packaging in the coming years to capture the growing market. Young consumers prefer metal cans as they are portable and don’t break like glass.

Distribution Channel Insights

The supermarkets/hypermarkets accounted for the largest revenue share of over 61% in 2019. The rise in the number of retail outlets worldwide and offers provided by the key players in these stores is likely to attract many consumers in the coming years. For instance, Simple Skills Beverages LLC launched RTD cocktails Classic Bellini and Mango Mimosa, which will be available in retail stores.

Global RTD cocktails market share, by distribution channel, 2019 (%)

The online segment is expected to ascend at the fastest CAGR over the forecast period. Emerging players are implementing various strategies to attract new consumers. For instance, Cocktail Courier, a U.S.-based company, is planning to launch RTD cocktail Party Can Triple Spice Margarita with 12.5% alcohol in July 2020, which would be available online for USD 29.99 across the U.S. More companies are likely to focus on distributing their products through online platforms in the coming future.

Regional Insights

North America accounted for the largest revenue share of over 30% in 2019 and is expected to continue its dominance over the forecast period. The U.S. accounted for the largest revenue share in the regional market due to growing consumer demand for different flavors of ready to drink cocktails and shifting preference for on-the-go products. Europe also captured a significant revenue share in 2019. The U.K. is expected to witness considerable growth in the regional market due to growing consumer demand for low alcohol-based drinks.

Asia Pacific is anticipated to register the fastest CAGR from 2020 to 2027 as there is a rising demand for premium, convenience, and quality RTD cocktails due to the rising influence of the western culture. Furthermore, the growing online distribution channels in the regional market is will drive the product demand in the coming years. Japan, in particular, is expected to witness the fastest growth rate due to high product consumption.

Key Companies & Market Share Insights

Companies have undertaken several business strategies, such as partnerships, collaborations, product expansion, online marketing, and product differentiation, to sustain the competitive market. Companies are majorly focusing on product innovation and partnership to capture the maximum market share. For instance, in June 2020, Brown-Forman launched canned RTD cocktails through its brand Jack Daniels’s to innovatively offer its Tennessee whiskey.

In June 2020, Molson Coors, a U.K.-based company, partnered with Miami Cocktail Company to distribute its product in the U.S. market. Most of the emerging players are focusing on quality and innovation to sustain the competition. Some of the key players in the global ready to drink cocktails market include:

  • Diageo

  • Brown-Forman

  • Pernod Ricard

  • Bacardi Ltd.

  • Asahi Group Holdings, Ltd.

  • Halewood Wines & Spirits

  • Shanghai Bacchus Liquor Co., Ltd.

  • Suntory Holdings Ltd.

  • Manchester Drinks

  • Simple Skiff Beverages, LLC

Ready To Drink Cocktails Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 714.8 million

Revenue forecast in 2027

USD 1,626.3 million

Growth Rate

CAGR of 12.1% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million/billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments covered

Type, packaging, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; U.K.; Germany; France; China; Japan; Australia; Brazil; South Africa

Key companies profiled

Diageo; Brown-Forman; Pernod Ricard; Bacardi Ltd.; Asahi Group Holdings, Ltd.; Halewood Wines & Spirits; Shanghai Bacchus Liquor Co., Ltd.; Suntory Holdings Ltd.; Manchester Drinks; Simple Skiff Beverages, LLC.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global ready to drink cocktails market report on the basis of type, packaging, distribution channel, and region:

  • Type Outlook (Revenue, USD Million, 2016 - 2027)
    • Malt-based

    • Spirit-based

    • Wine-based

  • Packaging Outlook (Revenue, USD Million, 2016 - 2027)

    • Bottle

    • Cans

  • Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

    • Supermarkets/Hypermarkets

    • Online

    • Liquor Stores

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • Australia

    • Central & South America

      • Brazil

    • Middle East & Africa (MEA)

      • South Africa

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