RTD (Ready to Drink) Cocktail Analysis, Trends and Forecast to 2029: $2.23 Billion Market Driven by Minimalist, Craft and Artisanal RTD Cocktails, Premiumization Trends, and Innovative Flavors - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--Oct 17, 2024--

The "Global RTD Cocktail Market: Analysis By Type, By Flavor Type (Flavored and Unflavored), By Packaging (Bottles, Cans, and Others), By Distribution Channel, By Region Size and Trends and Forecast up to 2029" report has been added to ResearchAndMarkets.com's offering.

The global RTD cocktail market was valued at US$1.01 billion in 2023. The market value is expected to reach US$2.23 billion by 2029. The market is expected to grow at a CAGR of approx. 14.16% during the forecasted period of 2024-2029.

The global RTD cocktail market is quite fragmented with the presence of few well-established and several small- and medium-scale players operating in different regions.

RTD cocktails have has gained popularity during the historical years, driven by changing consumer preferences and lifestyles. Convenience is the most important factor for the increasing popularity of RTD cocktails, as these cocktails offer quick and effortless way to enjoy a sophisticated drink. Also, the growing demand for flavored drink with low alcohol content due to growing health conscious consumers is driving the market growth.

North America held the major share of the market, as a result of increasing demand for vodka and whiskey-based cocktails, rising consumer demand for a wide variety of flavors, growing innovations by brands concentrating the taste of flavored drinks, escalating premiumization trend, well-established retail infrastructure, and the shifting preference toward convenient on-the-go products.

In addition, the increasing trend of retailing ready to drink cocktails through online distribution channels, particularly e-commerce platforms such as Walmart, Amazon, and others, is expected to drive market growth in the region. The US is the largest region of North America RTD cocktail market. RTD cocktail brands in the US are focusing on craftsmanship and innovation to attract consumers. Manufacturers in the region are also increasingly focus on developing new recipes by collaborating with skilled mixologists and bartenders.

The United Kingdom is Europe's largest market for RTD cocktail. The rising health-consciousness consumers along with the growing influence of the American culture have made the consumers in the UK shift to RTD cocktails. The growing availability of popular brands in the UK is also driving the consumption of RTD cocktails in the country. India is one of the key player in the Asia Pacific RTD cocktail market, driven by increasing demand for flavored beverages with reduced alcohol content as a result of growing health concerns in the region, along with the rising millennials interest in pre-mixed cocktails. Consumers in India are becoming more open to trying new and international flavors. In fact, brands and start-ups are also bringing variations of RTD cocktails to the Indian market. For instance, Goa based Cheers group launched Ready-to-Drink cocktails made with an indigenous cashew spirit.

In addition to this, consistent quality of the cocktails, flavor innovations, increasing popularity of low sugar beverages, e-commerce growth, lifestyle alignment, premiumization trend, and rising influence of social media and celebrities, are also continuing to drive growth for RTD cocktail market. Generational shifts are also poised to support the category, as Gen Z and millennials are even more aligned with the convenience-driven, wellness-oriented trends driving RTD cocktail expansion.

Market Segmentation Analysis:

By Type: The report provides the bifurcation of the market into two segments based on type: Spirit-Based, Wine-Based and Malt-Based.

The Spirit-based cocktails held the highest share in the market. These cocktails typically contain alcohol content of up to 5%, combined with other ingredients, such as juices, and are available in single-serve packaging with a wide range of flavors. Popular spirits like vodka, gin, tequila, whiskey, and rum are commonly used in these cocktails. With a diverse range of options including infused flavors like ginger, rose, and lavender, spirit-based cocktails have become increasingly favored among consumers who prioritize flavor authenticity.

Whereas, wine-based cocktails is expected to be the fastest-growing segment in the forecasted period. The growth is driven by consumer perceptions of wine as a healthier alternative to spirits and malts, leading to increased demand for wine-based cocktails. Manufacturers are also introducing healthier options that are gluten-free, low in carbs, made with organic/natural ingredients, and have a lower alcoholic content, catering to the growing demand for wine-based cocktails.

By Flavor Type: The report further provides the segmentation based on the two flavor types: Flavored and Unflavored. The flavored segment held the major share of the global RTD cocktail market and is expected to be the fastest-growing segment in the forecasted period. Flavored cocktails are generally a beverage with natural or artificial flavors. There has been an increase in the popularity of flavored cocktails with tropical or exotic flavors like mango, coconut or passionfruit, reflecting the growing interest in global taste experiences. The key factors driving flavored RTD cocktail market growth include rising popularity of flavored cocktails among millennial and female consumers, rising cocktail culture, and diverse range of flavored vodka options.

By Packaging: The report provides the glimpse of the RTD cocktail market based on the following packaging types: Bottles, Cans, and Others.

The bottles segment accounted for the largest revenue share, establishing its dominance in the global market. The concept of RTD cocktails was initially introduced in bottle packaging, gaining widespread popularity globally. Bottled RTD cocktails often feature higher-end, spirit-based formulations that cater to consumers seeking a sophisticated drinking experience. The increasing trend for glass bottles, perception of bottles as a premium packaging option, larger capacity allows for more generous servings and the visual appeal of bottles, would further boost the demand for bottles in the global market for RTD cocktails.

The cans segment is expected to be the fastest-growing segment in the forecasted period. Cans have gained popularity as a preferred packaging option for ready-to-drink cocktails due to their numerous benefits, such as lightweight, durability, portability, multi-color printing, marketing support, sustainability, and compact design. Moreover, they are fancy and attractive. Manufacturers are also launching innovative cans with attractive prints to differentiate themselves from other brands in the market. This further supports the growth of canned cocktails.

By Distribution Channel: The report also provides the segmentation based on the three distribution channels: Supermarkets and Hypermarkets, Online, and Others.

The Supermarkets and hypermarkets channel dominated the market with a significant revenue share, driven by the strong consumer preference for purchasing products from supermarkets, convenience stores, specialty stores, and grocery stores. Consumers prefer hypermarkets/supermarkets for their extensive product choices and convenient shopping experience. Supermarkets and hypermarkets are globally recognized distribution channels, with retail giants like Target and Walmart holding significant market shares.

These retailers often run promotional campaigns and discounts, and offer multiple payment options, making RTD cocktails more attractive and affordable to a broad audience. On the other hand, the online channel is projected to grow at the fastest CAGR. This segment includes company websites and various e-commerce platforms, where RTD cocktails are made available for purchase.

The increasing consumer preference for online shopping has prompted companies to actively offer their products through this channel with heavy discounts, meeting the evolving demands of consumers who seek convenience and accessibility. Also, Consumers from different regions can easily access and purchase these products, contributing to market expansion beyond traditional retail boundaries.

Key Attributes:

RTD Cocktail Market Dynamics

Growth Drivers

• Rapid Urbanization
• Surging Gen Z and Millennial Population
• Increase in Pubs and Bars
• Proliferation of Online Shopping Platforms
• Growing Travel Retail Industry
• Convenience and Portability
• Health-Conscious Consumers

RTD Cocktail Challenges

• Complex and Diverse Regulations
• Preference for Classic or Freshly Made Cocktails

RTD Cocktail Market Trends

• Growing Influence of Social Media
• Innovative Flavors
• Rising Trend of Premiumization
• Rise of Craft and Artisanal RTD Cocktails
• Minimalist RTD Cocktails

Profiles of the Leading RTD Cocktail Companies: Business Overview, Operating Segments, Business Strategy

• Constellation Brands, Inc.
• Suntory Holdings Limited (Suntory Global Spirits, Inc.)
• Diageo, Anheuser-Busch InBev (Cutwater Spirits)
• Brown-Forman Corporation
• Pernod Ricard
• Campari Group, Bacardi Limited
• Via Carota Craft Cocktails
• Manchester Drinks
• Barrelsmith
• Mark Anthony Brands International

For more information about this report visit https://www.researchandmarkets.com/r/pyw5x3

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