RTD alcoholic beverages are gaining popularity over the past few years and are mostly consumed as cocktails and long drinks. The growing preference for RTD cocktails by millennial in developed countries and the easy availability of these products in the market is driving the growth of the RTD alcoholic beverages market. Moreover, the alcohol content in RTD alcoholic beverages is low as compared to other alcoholic drinks. Thus, RTD alcoholic drinks are gaining acceptance by a larger millennial consumer base, which, in turn, is catalyzing the market growth.
In 2018, Asia Pacific held the largest share of the global RTD Alcoholic Beverages market is expected to hold the largest share in 2027. The Asia Pacific region is expected to garner a significant share in the global RTD alcoholic beverages market owing to the large production and consumer base in the area. Countries such as India, China and Japan are among the largest consumers of RTD alcoholic beverages in the Asia Pacific region. Asia-Pacific is also among the largest global producer of alcoholic beverages. Changing consumer lifestyles, rising disposable income and variation in tastes & preferences and social & cultural factors in these countries are stimulating the growth of RTD alcoholic beverages market in this region. The population of Asia-Pacific represents diversified tastes and preferences and fond of experimenting with food & beverages varieties. This fact has forced manufacturers to innovate and widen their product portfolio to meet the dynamic consumer demand.
The key players in the RTD alcoholic beverage market are experimenting with new and innovative flavors. As flavor options increase, consumers may turn to RTD products as a convenient way to cart drinks along on their summertime adventures, from barbecues and beaches to road trips and vacations. Companies in the RTD alcohol beverage have greatly expanded their product lines over the past few years and have heavily emphasized their marketing toward young consumers. For instance, in February 2018, the largest drinks group Diageo introduced a ready-to-drink (RTD) version of Tanqueray and Tonin. The company hopes the RTD will entice new gin drinkers to the second fastest-growing spirits category with its new pre-mixed offering. Various flavors such as Elderflower, Red Berry, Orange, Ginger, Lime, Coffee Crème, English Tea, Creamy Toffee, Maple, Lemongrass, Vanilla, and Cardamom & Tonic are used in the production of RTD alcoholic beverage.
Moreover, the RTDs alcoholic beverage market has also benefited from rising investment by pubs and bars on flavored low-spirit beverages. These factors provide a huge market potential for RTD alcoholic beverage market over the forecast period. Moreover, packaging plays a critical role in the rising demand for the RTD alcoholic beverage product. The packaging is a key part of the marketing plan for the sale of the RTD alcoholic beverage business. The product package is a selling point for many consumers by delivering a sense of quality while also reflecting the product's brand image
On the basis of the base type, the global RTD alcoholic beverages market has been segmented into whiskey, rum, vodka, gin, others. Under the base type segment, the gin segment is the fastest growing region in forecasted year. Gin is a distilled alcoholic beverage derived from juniper berries, also known as Juniperus communis. It is one of the oldest categories of spirits with a unique flavor that revolve around juniper as a common ingredient. Gin based RTD is the most popular consumers in America. Taking into consideration the popularity of gin based RTD in North America, the alcohol beverage producers are introducing new products in the market. For instance, in May 2019, Fever-Tree entered the ready-to-drink market with the launch of a line of bottled gin and tonics, as it looks to bring added convenience for consumers throughout the summer. The range consists of three variants, such as premium Indian gin and tonic, refreshingly light gin and tonic, and elderflower gin and tonic.
The global RTD alcoholic beverages market by application has been segmented into bottles, cans, and others. Under the base type segment, the cans segment is the fastest growing region in forecasted year. The canned RTD alcoholic beverages are available in various volumes ranging from 90ml to a liter. The easy portability of cans has been one of the driving factors for the rise of canned RTD alcoholic beverages. The cans can easily be carried to a picnic, a yacht, or a barbeque and are stronger as compared to bottles. Steel and aluminum cans have been gaining rising popularity due to the ability to print on these cans. There has been an increasing demand for the canned RTD alcoholic beverages due to the easy availability and less production cost involved for the manufacturing of steel or aluminum can. Apart from this, the canned RTD alcoholic beverages are also easier to handle as compared to the packaging of the bottle. Many consumers are confused after buying an RTD alcoholic beverage if one has to pour it and add alcohol to it or not, but the cans come with a remark saying that it needs to be consumed readily and contains alcohol in it already.
AB InBev, Bacardi, Asahi Group Holdings, amongst others are the key players present in the global RTD alcoholic beverages market. These companies are implementing new product development and mergers and acquisition strategies to enlarge the customer base and gain significant market share across the world, which, in turn permit the players to maintain their brand name globally.
The regional trends and factors influencing the RTD Alcoholic Beverages Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses RTD Alcoholic Beverages Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2018 | US$ 26.45 Billion |
| Market Size by 2027 | US$ 39.43 Billion |
| Global CAGR (2018 - 2027) | 4.6% |
| Historical Data | 2016-2017 |
| Forecast period | 2019-2027 |
| Segments Covered |
By Base Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The RTD Alcoholic Beverages Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the RTD Alcoholic Beverages Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The List of Companies - Global RTD Alcoholic Beverages Market
Vodka is the most widely consumed base type of the RTD alcoholic beverages. A study conducted by Affinnova, Inc. shows that package design in the vodka market plays a vital role in shelf impact and consumer perception. Increasing popularity of beverages offered by Cutwater such as vodka sodas, bloody mary, and vodka mule is anticipated to boost the market growth of vodka based RTD market.
Asia Pacific accounted for the largest market in the RTD alcoholic beverages region. Countries such as India, China, and Japan are among the largest consumers of RTD alcoholic beverages in the Asia Pacific region. Asia-Pacific is also among the largest global producer of alcoholic beverages. Changing consumer lifestyles, rising disposable income and variation in tastes & preferences, and social & cultural factors in these countries are stimulating the growth of the RTD alcoholic beverages market in this region.
The rising preference towards low-content alcoholic beverages coupled with the increasing preference for RTD alcoholic beverages amongst millennial have been the key factors driving the growth of RTD alcoholic beverages market across the globe. According to a recent survey done by FONA International Inc., RTD alcoholic beverages have gained high acceptance from millennial consumers. The availability of a wide range of flavors, light alcohol content, and convenience are attracting maximum young millennial to try these products.