Ready to Drink Shakes Market Size, Share & Trends Analysis Report By Packaging Type (Bottles, Tetra Packs), By Distribution Channel (Supermarkets & Hypermarkets, Online), By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global ready to drink shakes market size was valued at USD 8.2 billion in 2018 and is expected to expand at a CAGR of 5.7% from 2019 to 2025. The market growth is attributed to rising health consciousness among consumers. The increasing popularity of ready-to-drink (RTD) shakes, especially among fitness enthusiasts and millennials, has also been driving the market.

The majority of millennials consume ready to drink beverages to manage stress, weight, and fatigue. It has been observed that the extreme usage of digital tools is driving them to take care of their eye health. For instance, The Chill Group Inc. launched stress release ready to drink shakes in different flavors like zero ginger, tropical, rio berry, and Jamaican citrus to attract more millennial population. Another manufacturer namely Tran Quini majorly offers relaxing drinks to manage stress levels. It has been observed that millennials' interest in protein shakes is increasing. Growing lactose intolerance is compelling for consumers to choose protein drinks instead of milkshakes. Isopure zero carb protein drink of Nature’s Best is one of the popular health beverages.

A fast-paced and busy lifestyle is propelling consumers to switch to quick and healthy meal options. This scenario has resulted in the penetration of RTD shakes that offer nutrient-based beverages and promote active lifestyles. These beverages can be replaced with the meal to decrease the time taken for food consumption. It has been observed that in the U.S., around 22% of people prefer RTD shakes to reduce mealtime.

Growing demand for these beverages among busy consumers as well as fitness enthusiasts has been driving the manufacturers to introduce and expand their product offerings. For instance, Drink Rumble launched RTD shakes named Rumble Super shake in various flavors such as chocolate, coffee, vanilla-infused with organic ingredients, veggies, maple syrups, and other proteins.

A large number of health fitness centers are encouraging the consumption of RTD shakes due to the rising popularity of these products. There are many types of ready to drink protein shakes available in the market, such as whey, casein, soy, pea, rice, and hemp, which are consumed for building muscle, losing weight, and other purposes. Another factor responsible for the market growth is the growing consumer shift towards vegan products that has increased the demand for plant-based RTD shakes. Companies are introducing plant-based RTD shake made with pea, hemp, and pumpkin seed. Vega (U.S.) introduced a protein nutrition shake to cater to consumer demand.   

Packaging Type Insights

In 2018, bottle packaging accounted for the largest share of 49.6% in the global market. This packaging type includes PET and glass bottles. It has been gaining traction mainly due to its reusability. Companies are using recycled plastic bottles to avail tax benefits from the government for eco-friendly behavior. Besides tax benefits, recycled bottle decreases packaging cost, which is profitable for the company.

Tetra packs are expected to be the fastest-growing segments, expanding at a CAGR of 5.9% from 2019 to 2025. Growing consumer demand for on-the-go packaged products is also significantly driving the segment. Manufacturers also prefer to sell their products in the tetra pack because of its cost-effectiveness. Tetra packs are made from paper board, polyethylene, and aluminum, which make them easily recyclable. Consumers prefer them due to their strong and lightweight nature. Mostly the seals are built into the caps that make them more convenient for the consumer.

Distribution Channel Insights

Supermarkets and hypermarkets dominated the market and accounted for 54.3% share of the overall revenue in 2018. Consumers prefer these channels to purchase their products due to the availability of a wide range of options as well as the facility of scanning the product details before any purchase. The layout of the supermarket and promotional campaigns by leading brands have also increased the sales volume in supermarkets and hypermarkets. Development in the organized retail sectors has been driving the segment by providing ample space and visibility for the existing as well as local brands to offer their products.

The online segment is anticipated to grow at a comparatively faster pace with a CAGR of 6.1% from 2019 to 2025. Consumers are more inclined towards purchasing their daily required food and beverage items from online stores due to the doorstep delivery system. Another factor boosting the segment growth is the ease of product comparison in less time. Customers can compare different brands of the product and understand their ingredients and health benefits in less time.

Regional Insights

As of 2018, the market was dominated by North America, accounting for 32.2% in the overall industry. Growing consumer awareness regarding healthy living lifestyles is driving market growth. Thus, consumers are spending a major portion of their disposable income on health and wellness. Consequently, major companies are increasing their investment in the development of a new sales channel to create a different consumer base. For instance, Los Angeles-based Cave Shake made a partnership with L.A. Libations to increase its distribution beyond Southern California.

Asia Pacific is expected to be the fastest-growing market with a CAGR of 6.5% from 2019 to 2025. Increasing disposable income, especially in developing countries such as China and India, is expected to boost the growth of the market. Asia Pacific has a large number of the millennial population, which is further contributing to the market growth. China is the largest market in Asia Pacific and expected to reach USD 0.91 billion in 2025. A large number of the working population has significantly fueled the demand for the product.

Ready to Drink Shakes Market Share Insights

Key players in the market include Nutrineo; CytoSport, Inc.; Vega (U.S.); Nature’s Best; OWYN; PREMIER PROTEIN; Orgain, Inc.; AMERPHARMA; Huel; and Soylent. Companies are majorly investing in product innovation to expand its customer range in the market. For instance, in May 2018, GT’S LIVING FOODS has launched three different flavors of ready to drink tea to increase its consumer base.

Report Scope

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 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global ready to drink shakes market report on the basis of packaging type, distribution channel, and region:

• Packaging Type Outlook (Revenue, USD Billion, 2015 - 2025)

  • Bottles

  • Cans

  • Tetra Packs

• Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)

  • Supermarkets & Hypermarkets

  • Convenience Stores

  • Online

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • India

    • China

  • Central & South America

  • Middle East & Africa