U.S. Ready To Drink Cocktails Market Size, Share & Trends Analysis Report By Alcohol Base (Wine-based, Spirit-based), By Distribution Channel (Online, Liquor Stores), By Packaging (Cans, Bottles), And Segment Forecasts, 2024 - 2030

U.S. Ready To Drink Cocktails Market Trends

The U.S. ready to drink cocktails market size was estimated at USD 229.3 million in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 15.2% from 2024 to 2030. Rising consumer awareness about the health benefits associated with these beverages has fueled the demand for the product in the U.S. As an increased number of breweries and distilleries are incorporating RTD alternatives in the U.S., the adoption of the product has been rising. The demand for RTD cocktails is high among young consumers in the region. Companies in the region are emphasizing product innovation and development to attract more consumers.

U.S. ready to drink cocktails market accounted for the share of 24.3% of the global ready to drink cocktails market in 2023. The increasing preference for convenience has been driving the demand for RTD cocktails in the country. The younger consumers prefer on-the-go drinks that don’t compromise on taste. Furthermore, the rising cocktail culture, premiumization, and incorporation of quality ingredients are shaping the U.S. RTD cocktails market. In addition, the COVID-19 outbreak and social distancing norms that followed boosted the demand for the product in 2020 as RTD drinks have become feasible options for cocktail lovers in the country.

The growing popularity of the cocktail culture is encouraging consumers to become more selective about the taste of their beverages. As a result, consumers are ‘trading-up’ to premium and super-premium brands to make certain of the quality of their drink. This has positively impacted the industry as premium and super-premium brands enjoy higher profit margins as compared to lower quality ones.

Market Concentration & Characteristics

The U.S. ready to drink cocktails market is characterized by high degree of innovation, with businesses continuously focusing on differentiating themselves through unique experiences and offerings. Innovation in RTD cocktails by using real fruit juices with no artificial sweeteners is also driving the market demand. RTD cocktails offer a wide range of choices to consumers in terms of both, innovative products and healthier beverage options, such as RTD cocktails infused with ginger or lavender that are beneficial for one’s health.

Companies have undertaken several business strategies, such as partnerships, collaborations, product expansion, online marketing, and product differentiation, to sustain in the competitive market. Companies are majorly focusing on product innovation and partnerships to capture maximum market share. Key manufacturers of the market are Diageo; Brown-Forman; Pernod Ricard; Bacardi Ltd.; Asahi Group Holdings, Ltd.; Halewood Wines & Spirits; Shanghai Bacchus Liquor Co., Ltd.; Suntory Holdings Ltd.; Manchester Drinks; and Simple Skiff Beverages, LLC, among others.

End-user concentration is a significant factor in the U.S. ready to drink cocktails. Growing consumer inclination toward ready-to-eat and ready-to-drink products, owing to their busy lifestyles and hectic work schedules, is driving the demand for RTD cocktails. The increasing working population, supported by the increasing number of working women, is anticipated to drive the market for RTD cocktails. Furthermore, the demand for RTD cocktails is driven by the numerous consumers who prefer offering homemade drinks at house parties and social gatherings.

Alcohol Base Insights

The wine-based ready to drink cocktails accounted for a revenue share of 43.9% in 2023. Consumers perceive wines to be healthier than spirits and malts, which has driven its market demand as wine-based cocktails usually contain fruit juices, such as grapefruit, oranges, lemon, mango, and berries. Consumers have become more sophisticated with their choices and taste in alcohol, owing to the evolving consumer lifestyles. This has resulted in a rapid shift to wine-based RTD cocktails as a substitute for wine as they contain alcohol in lesser quantities.

The sprit-based ready to drink cocktails is expected to grow at a CAGR of 15.6% over the forecast period. Spirit-based RTD cocktails usually contain up to 5% alcohol mixed with other ingredients like juices and are available in single-serve packaging and various flavor options. Vodka, whiskey, gin, tequila, and rum are the most commonly used sprits in RTD cocktails. Pernod Ricard and Diageo are among the key brands operating in the spirit-based RTD cocktails market.

Packaging Insights

The bottle packing accounted for a revenue share of 56.8% in 2023. Initially, the ready-to-drink 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 RTD cocktails in glass bottles. For instance, High West Distillery offers barrel-finished cocktails in glass bottles. Furthermore, the rise in awareness regarding water and land pollution caused by beverages packaged in plastic bottles has led to an increased demand for RTD cocktails in glass bottles.

The cans packing is expected to grow at a CAGR of 16.5% over the forecast period. Canned cocktails are one of the strongest categories of alcoholic drinks in the region. A large number of manufacturers have been offering canned cocktails in the region. This has improved the accessibility of canned products in the U.S. Several new players in the U.S. market such as Cool Cat are offering canned cocktails made with natural flavors and free from gluten. This trend of healthy cocktails will create opportunities for the product in the country.

Distribution Channel Insights

Hypermarket/supermarket sales accounted for 59.6% share in 2023.Supermarkets and hypermarkets are an important distribution channel since they have a wide consumer reach. The improving scenario, such as the provision of click-and-collect service, of the retail industry is expected to boost this segment’s growth in the years ahead. The increase in the number of distribution channels and their reach in urban and rural areas is one of the major factors positively impacting the U.S. ready to drink cocktails market. The availability of a large variety of products, along with huge discounts and offers, has been attracting consumers to purchase products from hypermarkets and supermarkets.

The sales through online distribution channel is expected to grow at a CAGR of 17.8 over the forecast period. The popularity of mobile commerce has increased remarkably. This trend has led manufacturers to increase their investments in the online distribution channel in order to expand their reach. Free home delivery, easy payment options, and price comparison options are the foremost factors driving consumers towards the online distribution channel.

Key U.S. Ready To Drink Cocktails Company Insights

Some of the key players operating in the market includeBacardi Limited, Brown-Forman, and Suntory Holdings Limited

• Bacardi Limited is a U.S.-based company specialized in the manufacturing, sales, marketing, and distribution of alcoholic beverage across the globe. The company was founded in 1862 and is headquartered in Coral Gables, Florida, U.S. As of December 2021, the company had an employee strength of more than 6,000 across the globe. Bacardi has a wide range of alcoholic beverages, which it sells under more than 200 brands and labels in more than 170 countries. The company has more than 20 manufacturing facilities in around 12 countries.

• Brown-Forman specializes in the manufacturing, sales, marketing, and distribution of wines & spirits across the globe. The company was founded in 1870 and it is headquartered in Kentucky, U.S. As of December 2022, the company had a global employee strength of more than 4,500. Brown-Forman sells a wide range of alcoholic beverages under more than 40 brands in over 170 countries. The company has more than nine manufacturing facilities around the world.

Asahi Group Holdings, Ltd., Diageo plc, and The Absolut Company some of the other participants in the U.S. ready to drink cocktails market,

• Asahi Group has a wide range of alcoholic beverage, which it sells under more than 20 brands in over 100 countries. According to the company, its alcoholic beverage business accounts for 40.5% of its revenue, the overseas business holds 32%, its soft drinks business accounts for 17.2%, the food business amounts to 5.4% in revenue, and its “other” businesses hold 4.9% of its overall revenue.

• Diageo plc offers a wide range of products including beers, spirits, and other premium beverages. It also sells products under six global brands, 11 local star brands, and 12 reserve brands. According to the company, 39% of its revenue is generated by global brands, 20% by local star brands, and 21% by reserve brands. The company offers its RTD cocktail under the Smirnoff brand globally.

Recent Developments

• In April 2023, Jennifer Lopez an American singer and actress launched ‘The House of Delola’ a premium range of spirit-based and organic RTD cocktails. Launched in three flavors, namely L’Orange Spritz (10.5% ABV), Bella Berry Spritz (10.5% ABV), and Paloma Rosa Spritz (11.5% ABV), the cocktails are enhanced with fruit flavors and have fewer calories.

• In November 2022, Diageo plc launched a new global campaign ‘Drops of Advice’ encouraging people to drink responsibly and promote its Smirnoff Passion Fruit Martini brand.

• In September 2022, Brown-Forman announced that it is planning to distribute its own brands in Slovakia effective September 1, 2023, that will include RTD cocktails.

U.S. Ready To Drink Cocktails Market Report Scope

U.S. Ready To Drink Cocktails Market Report Segmentation

This report forecasts revenue growth at country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. ready to drink cocktails market report based on alcohol base, packaging, and distribution channel:

• Alcohol Base Outlook (Revenue, USD Million, 2018 - 2030)

  • Malt-based

  • Spirit-based

  • Wine-based

• Packaging Outlook (Revenue, USD Million, 2018 - 2030)

  • Bottles

  • Cans

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Hypermarkets/Supermarkets

  • Online

  • Liquor Stores