GVR Report cover Ready To Drink Cocktails Market Size, Share & Trends Report

Ready To Drink Cocktails Market Size, Share & Trends Analysis Report By Type (Wine-based, Spirit-based, Malt-based), By Packaging (Cans, Bottles), By Distribution Channel, By Region, And Segment Forecasts, 2022 - 2030

  • Published Date: Feb 2022
  • Report ID: GVR-4-68039-253-5
  • Number of Pages: 90
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2020

Report Overview

The global ready to drink cocktails market size was valued at USD 782.8 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.4% from 2022 to 2030. The growing demand for flavored drinks with low alcohol content due to the rising health concerns is anticipated to drive the market over the forecast period. Premiumization of the product with flavors, taste, quality, and package design is further expected to drive the market.

U.S. ready to drink cocktails market size, by type, 2020 - 2030 (USD Million)

The COVID-19 pandemic has had a positive impact on the market. Though the demand for them was already rising, the segment exploded after the COVID-19 pandemic hit the world. The growth of the at-home cocktail culture, increased concerns for health, convenience, and the enhanced quality and diversity of ready to drink cocktails are the factors behind the upsurge in demand.

The pandemic has caused many consumers to alter their buying habits and convert to online shopping in an effort to avoid exposure to the virus. In addition, in an effort to reach more consumers, brick-and-mortar retailers are beginning to realize the importance of developing an e-commerce strategy and are subsequently turning to online ordering and delivery platforms like Drizly (an online ordering and delivery platform) for expansion.

Consumers in developed countries have become more health-conscious, thereby switching to low alcohol flavored drinks. They usually contain a low amount of alcohol, ranging from 4%-7% along with added flavors like lemon, cranberry, orange, and passion fruit, which eventually attracts health-conscious consumers. Therefore, low alcohol by volume (ABV) drinks have been gaining traction over the years. Gin and tequila-based products, in particular, have a high demand among consumers.

The per capita alcohol consumption in Russia, Australia, Brazil, China, and South Africa has declined significantly in recent years. Furthermore, changing lifestyle choices to improve health and the growing trend of responsible drinking are expected to boost the demand. Moreover, the availability of organic, gluten-free, and keto-friendly ready to drink cocktails is encouraging a greater number of consumers to adopt these products.

Growing consumer inclination toward ready-to-eat or ready-to-drink products owing to the busy lifestyles and hectic work schedules is driving the demand. The increasing working population, supported by the increasing number of working women, is anticipated to drive the market. Furthermore, the demand is driven by numerous consumers who prefer offering homemade drinks at house parties and social gatherings.

Type Insights

Spirit-based cocktails held the largest revenue share of over 40.0% in 2021 and are expected to maintain their lead over the forecast period. It usually contains up to 5% alcohol mixed with other ingredients like juices and is available in single-serve packaging and various flavors. Vodka, gin, tequila, whiskey, and rum are the most commonly used spirits. These drinks offer a wide range of varieties, such as cocktails infused with ginger, rose, and lavender along with spirits, which, in turn, has increasingly made them the most preferred low alcoholic beverage among consumers

Wine-based cocktails are expected to emerge as the second-fastest growing segment at a CAGR of 13.1% over the forecast period. Consumers perceive wines to be healthier than spirits and malts, which has driven the market demand as wine-based cocktails usually contain fruit juices, such as grapefruit, oranges, passionfruit, lemon, mango, and berries. It also resonates with changing consumer trends and inclination towards a healthy lifestyle by shifting to beverages with low-ABV content. This has propelled manufacturers to introduce healthier, gluten-free, low-carb, organic/natural wine-based cocktails.

Packaging Insights

The bottles segment dominated the market for ready to drink cocktails and accounted for a revenue share of over 55.0% in 2021. Initially, the ready to drink cocktails concept was launched in a bottle package design and became popular worldwide. As it closely resembles beer, packaging was done in glass bottles. Further, the aluminum shortage in countries, such as the U.S., has led to the introduction of glass bottles. These market trends increased the demand for glass bottles across the globe.

The cans segment is anticipated to expand at the fastest CAGR of 13.9% from 2022 to 2030. Cans are lightweight and compact, which makes them a popular packaging choice. Several consumers are looking for premium on-the-go cocktails with attractive designs so that they match their style statement. As consumers are choosing cans instead of bottles, manufacturers are trying to launch products in this packaging type. For instance, in October 2020, Pure Scot, an Australian whiskey company, launched spirit-based ready to drink cocktails in cans with 8% ABV content.

Distribution Channel Insights

The hypermarkets/ supermarkets accounted for the largest revenue share of over 65.0% in 2021. The segment is projected to maintain its lead throughout the forecast period owing to the high consumer inclination toward shopping grocery products from supermarkets and convenience stores, specialty stores, and grocery stores as these places enjoy high customer preference. Grocery stores are among the key distribution channels. The mainstream grocery distribution platform includes local grocery stores and national chains such as Kroger in the U.S. 

Global ready to drink cocktails market share, by distribution channel, 2021 (%)

Supermarkets and hypermarkets are prominent distribution channels worldwide with companies such as Target and Walmart dominating the space. Unlike grocery stores, orders across supermarkets and hypermarkets are larger. The online segment is expected to register the fastest CAGR of 14.4% from 2022 to 2030. The segment includes company websites and e-commerce platforms through which their products are sold. Growing consumer preference for the online platform has prompted companies to offer products through this channel.

Regional Insights

North America dominated the market for ready to drink cocktails and held a revenue share of over 30.0% in 2021 and is expected to maintain its lead in the forecast period. Growing demand for vodka and whiskey-based beverages is driving the regional market. The U.S. accounted for the largest revenue share in the regional market in 2021 due to the growing consumer demand for different flavors and shifting preferences towards on-the-go products. The low alcohol content and lower price of these cocktails are driving their demand among the consumers in the country.

Asia Pacific is anticipated to register the fastest CAGR 14.9% from 2022 to 2030 as there is a rising demand for premium, convenient, and quality cocktails due to the growing influence of western culture. Changing lifestyles and rising alcohol consumption in the region are other major factors driving the product demand. The convenience offered by these drinks, along with the low alcohol level and lower price in comparison to cocktails served at bars, makes them an ideal choice for young consumers.

Key Companies & Market Share Insights

The market is characterized by the presence of a few well-established players and several small and medium players. Companies have been launching new products across the globe owing to the rising demand. For instance, in January 2022, The Coca-Cola Company has signed a brand authorization agreement with Constellation Brands Inc. to launch FRESCA Mixed, a line of full-flavored, spirit-based ready-to-drink (RTD) cocktails in the U.S. The FRESCA brands aim to appeal to consumers seeking fuller-flavored experiences and higher-quality RTD cocktails to bridge between refreshing hard seltzers and full-flavored bar cocktails.

For instance, in March 2021, Diageo plc launched a new ‘Crown Royal ready to drink cocktails’ for whisky and cocktail enthusiasts. It includes three classic, signature Crown Royal serves in flavors of apple, cranberry, cola, and peach tea. For instance, in August 2020, Diageo plc launched a range of flavored, low-calorie, RTD cocktails under its Ketel One brand in the U.S. The product is formulated with vodka blended with botanicals, natural fruits, and sparkling water and comprises of three-strong flavors including - ‘Peach & Orange Blossom’, ‘Cucumber & Mint’, and ‘Grapefruit & Rose’. Some prominent players in the global ready to drink cocktails market include: -

  • Diageo plc

  • Brown-Forman

  • Bacardi Limited

  • Asahi Group Holdings, Ltd.

  • PernodRicard

  • Halewood Wines & Spirits

  • SHANGHAI BACCHUS LIQUOR CO., LTD.

  • Suntory Holdings Limited

  • Manchester Drinks Company Ltd.

  • Anheuser-Busch InBev

Ready To Drink Cocktails Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 853.2 million

Revenue forecast in 2030

USD 2.43 billion

Growth Rate

CAGR of 13.4% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, 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 plc; Brown-Forman; Bacardi Limited; Asahi Group Holdings, Ltd.; PernodRicard; Halewood Wines & Spirits; SHANGHAI BACCHUS LIQUOR CO., LTD.; Suntory Holdings Limited; Manchester Drinks Company Ltd.; Anheuser-Busch InBev

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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 and opportunities in each of the sub-segments from 2017 to 2030. 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, 2017 - 2030)

    • Malt-based

    • Spirit-based

    • Wine-based

  • Packaging Outlook (Revenue, USD Million, 2017 - 2030)

    • Bottles

    • Cans

  • Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

    • Hypermarkets/Supermarkets

    • Online

    • Liquor Stores

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

    • Europe

      • U.K.

      • France

      • Germany

    • Asia Pacific

      • China

      • Japan

      • Australia

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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