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, Spirit, Malt-based), By Packaging (Cans, Bottles), By Distribution Channel, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jun, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-253-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 90

Report Overview

The global ready to drink cocktails market size was valued at USD 714.8 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 12.0% from 2021 to 2028. The growing demand for flavored drinks with low alcohol content due to rising health concerns is anticipated to drive the market over the forecasted period. Premiumization of the product with flavors, taste, quality, and package design is further expected to drive market growth. The COVID-19 pandemic has had a positive impact on the global market. Growth of the at-home cocktail culture, increased concerns for health, convenience, and the enhanced quality and diversity of RTD cocktails are the factors that augmented the product demand.

U.S. ready to drink cocktails market size, by type, 2016 - 2028 (USD Million)

Consumers in developed countries have become more health-conscious, thereby switching to flavored drinks, like lemon, cranberry, orange, and passionfruit, which have low alcohol content, ranging from 4 to 7%. 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 trend of responsible drinking is expected to boost the product demand. Moreover, the availability of organic, gluten-free, and keto-friendly RTD cocktails is encouraging consumers to opt for these products. Growing consumer inclination toward, Ready-To-Eat (RTE) or RTD products, owing to their busy lifestyles and hectic work schedules is driving the market. The increasing number of working individuals is anticipated to drive the product demand.

In terms of packaging, the cans segment is estimated to ascend at the fastest CAGR over the forecasted period due to growing demand for convenient and easy-to-carry, on-the-go packaging. In addition, cans are allowed in public places like swimming pools and parks where bottles are generally restricted. Moreover, young consumers prefer metal cans as they are more portable and do not break easily.

Type Insights

The spirit-based type segment held the largest revenue share of over 43% in 2020 and is expected to maintain dominance over the forecast period. Spirit-based beverages usually contain up to 5% alcohol mixed with other ingredients like juices and are available in single-serve packaging and various flavors. Vodka, gin, tequila, whiskey, and rum are the most commonly used spirits. The growing demand for low content alcohol-based flavored drinks due to the rising health concerns is anticipated to drive the segment over the forecasted period. These drinks offer a wide range of variety, such as cocktails infused with ginger, rose, and lavender along with spirits, which, in turn, has increasingly made them the most preferred alcoholic beverage among consumers.

Wine-based cocktails is projected to be the second-fastest-growing segment from 2021 to 2028. Consumers perceive wines to be healthier than spirits and malts as they usually contain fruit juices, such as grapefruit, oranges, passionfruit, lemon, mango, and berries, which drives their demand. It also resonates with changing consumer trends towards leading a healthy lifestyle by shifting to beverages with low-ABV content. This has propelled manufactures to introduce healthier beverages, that are gluten-free, low-carb, contain organic/natural ingredients, and have low alcoholic content. For instance, Miami Company offers several organic wine-based cocktails in its product portfolio.

Packaging Insights

The bottle packaging segment accounted for the largest revenue share of more than 58% in 2020. Initially, the RTD concept was launched in a bottle package design and became popular worldwide. 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 register the fastest CAGR of over 12% from 2021 to 2028. Cans are lightweight and compact, which makes them a popular packaging choice.

Rising demand for premium on-the-go cocktails with attractive designs will support the segment growth. Moreover, several manufacturers are trying to tap this market by launching new products in this format. Furthermore, 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 with 8% ABV content.

Distribution Channel Insights

The supermarkets/hypermarkets segment accounted for the maximum revenue share of more than 69% in 2020. The segment is projected to retain its dominance throughout the forecast period owing to the high consumer inclination toward shopping grocery products from supermarkets and convenience stores, specialty stores, and grocery stores. Supermarkets & hypermarkets are prominent distribution channels worldwide with companies, such as Target and Walmart, dominating the space. Unlike grocery stores, orders across supermarkets & hypermarkets are larger.

Global ready to drink cocktails market share, by distribution channel, 2020 (%)

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. The online platform is expected to register the fastest CAGR from 2021 to 2028. The segment includes company websites and e-commerce platforms through which their products are sold. The shift in consumers’ shopping behavior is one of the major factors driving the sales through the online channel. Growing consumer preference for online platforms has prompted companies to offer products through this channel.

Regional Insights

North America accounted for the largest revenue share of more than 33% in 2020 and is expected to continue its dominance during the forecasted period. The U.S. accounted for the largest revenue share in the regional market due to the high demand for on-the-go products with different flavors. Asia Pacific is anticipated to register the fastest CAGR of more than 13% from 2021 to 2028.

This growth can be credited to the rising demand for premium, convenient, and quality cocktails as a result of the growing influence of western culture. Growing demand for vodka and whiskey-based beverages is driving the regional market. The low alcohol content and lower price of these cocktails than the ones that are served at bars make them an ideal choice for young consumers of the region.

Key Companies & Market Share Insights

The market is characterized by the presence of a few well-established and several small- and medium-scale players. New product launches and partnerships have been a key business strategy. For instance, in December 2020, Brown-Forman Corp. announced an exclusive long-term partnership with Pabst Brewing Company, for the sales, supply, and distribution of Brown-Forman’s Jack Daniel’s Country Cocktails brand within the U.S. and in domestic military markets. Some of the key players in the global ready to drink cocktails market include:

  • Diageo plc

  • Brown-Forman

  • Bacardi Limited

  • Asahi Group Holdings, Ltd.

  • Pernod Ricard

  • 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 2021

USD 782.8 million

Revenue forecast in 2028

USD 1,775.1 million

Growth rate

CAGR of 12.0% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

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.; Pernod Ricard; 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 global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. 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 - 2028)

    • Malt-based

    • Spirit-based

    • Wine-based

  • Packaging Outlook (Revenue, USD Million, 2016 - 2028)

    • Bottles

    • Cans

  • Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)

    • Hypermarkets/supermarkets

    • Online

    • Liquor Stores

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • 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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