RTD Cocktails Market Size Report | Outlook & Growth by 2030

[Research Report] The RTD cocktails market size is projected to grow from US$ 24,731.53 million in 2022 to US$ 63,373.38 million by 2030; the market is expected to grow at a CAGR of 12.5% from 2022 to 2030.

Market Insights and Analyst View:

RTD cocktails are ready-to-drink packaged drinks meant for direct consumption. The drinks include premixed beverages, mocktails, and spirit mixers. It is typically a mixed drink containing alcohol. The growing demand for flavored drinks with low alcohol content due to the rising health concerns is driving the market. Rising urbanization, growing trend of party culture, and changing consumer taste preferences are the factors driving the RTD cocktails market

Growth Drivers and Challenges:

The consumption of high-quality RTD cocktails is increasing worldwide, which is currently one of the biggest trends in the alcoholic beverage industry. The convenience offered by RTD alcoholic beverages, such as RTD cocktails, allows consumers to save time and effort associated with ingredient shopping, mixing, and preparing drinks. Due to hectic work schedules, consumers prefer to be efficient with their time rather than spending it on tedious tasks. Thus, they are more likely to spend their money on convenience, which dives into the popularity of RTD beverages such as cocktails and hard seltzers. These factors expected to propels the RTD cocktails market growth.

Moreover, people are heavily influenced by social media influencers and celebrities and try to follow them. Brands benefit from the growing influence of social media and celebrities on people. Celebrities heavily promote RTD cocktails and are also getting involved in the businesses. For instance, Thomas Ashbourne Craft Spirits is the latest company to work with celebrities in order to build a brand image. Celebrities such as Sarah Jessica Parker and John Cena have partnered in founding The Spirit Company. They launched classic RTD canned cocktails, including "The Perfect Cosmo" and "The Classic Old Fashioned." Thus, the increasing influence of social media and celebrities on RTD cocktails is expected to bring new trends to the RTD cocktails market in the coming years.

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RTD Cocktails Market: Strategic Insights

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Report Segmentation and Scope:

The "Global RTD Cocktails Market" is segmented based on base type, application, and geography. Based on base type, the market is categorized into malt-based, tequila-based, vodka-based, whiskey-based, and others. Based on packaging type, the RTD cocktails market is segmented into bottles, cans, and others. In terms of distribution channel, the market is categorized into supermarkets & hypermarkets, specialty stores, online retail, and others. Based on geography, the RTD cocktails market is segmented into North America (the US, Canada, and Mexico), Europe (Germany, France, Italy, the UK, Russia, and the Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America)

Segmental Analysis

Based on type, the RTD cocktails market is segmented into malt based, tequila based, vodka based, whiskey based, and others. The malt-based segment is significantly contributing to the rising RTD cocktails market share. Malt-based cocktails are widely available across various retail stores. Manufacturers offer malt-based cocktails in different flavors with low sugar and low alcohol content. Hard seltzer is one of the popular malt-based cocktails in the US. Its alcohol content typically ranges between 4 and 6%. White Claw and Truly are major brands available in malt-based hard seltzers. Thus, the rising demand for malt based RTD cocktails is further expected to boost the segment's share.

Regional Analysis:

Based on geography, the RTD cocktails market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global RTD cocktails market was dominated by North America, which accounted for US$ 9,724.73 million in 2022. Europe is a second major contributor, holding more than 25% share of the global market. Additionally, Asia Pacific is expected to grow considerably at a CAGR of 18.0% over the forecast period. North America is one of the prominent regions for market growth owing to the rapidly increasing consumption of RTD alcoholic beverages across the region. As busy lifestyles increasingly shift toward indulgent experiences at home, RTD cocktails provide consumers with a convenient way to enjoy their choice of alcoholic beverages without visiting a restaurant or bar. Consumers in the region are increasingly prioritizing convenience, taste, variety, and quality in their choice of beverages. Spirit-based RTD cocktails fit squarely into this trend. Thus, the demand for such cocktails is increasing across the region.

Moreover, the growing health wellness among Europeans surged the demand for "low calorie" RTD cocktails in Europe. Hence, to cater to the consumers' requirement for "low calories," key regional industry participants are progressively innovating the products. For instance, in December 2020, Boe Gin, a distiller based in Scotland, launched low-calorie gin and lemonade cans. The Boë Violet with Rose Lemonade and Boë Passionfruit with Sicilian Lemonade RTD cocktails offered by the company have 5.5% alcohol by volume (ABV) and contain less than 80 calories per 250 ml can. Such product offerings by regional players are expected to drive the RTD cocktails market share in the region.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the RTD cocktails market are listed below:

1. In March 2021, Diageo plc launched "Crown Royal ready-to-drink cocktails" for whiskey-based cocktail enthusiasts. They are available in classic, signature Crown Royal flavors such as apple, cranberry, cola, and peach tea.
2. In August 2020, Diageo plc launched a range of flavored, low-calorie, RTD cocktails under its Ketel One brand in the US. The product is formulated with vodka blended with botanicals, natural fruits, and sparkling water. It is available in three strong flavors: peach & orange blossom, cucumber & mint, and grapefruit & rose.
3. In June 2022, Holla Spirits—a millennial-owned, award-winning spirits company—introduced convenient, on-the-go pouch line packaging for its RTD cocktails. The premixed drinks, made with organic vodka and coconut water, are available in natural lime, watermelon, and papaya flavors with attractive pouch packaging.

RTD Cocktails Market Regional Insights

The regional trends and factors influencing the RTD Cocktails Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses RTD Cocktails Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

RTD Cocktails Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The RTD Cocktails 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 Cocktails Market are:

1. Bacardi-Martini BV
2. Beam Suntory Inc
3. Boulevard Brewing Co
4. Bully Boy Distillers LLC
5. Constellation Brands Inc

Disclaimer: The companies listed above are not ranked in any particular order.

COVID-19 Impact: 

The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the food & beverages industry. The shutdown of manufacturing units disturbed global supply chains, manufacturing activities, delivery schedules, and essential and nonessential product sales. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020. Before the onset of the COVID-19 outbreak, the RTD cocktails market was mainly driven by busy lifestyles, changing consumer preferences, and a desire for on-the-go consumption.

The COVID-19 pandemic positively impacted the RTD cocktails market. The COVID-19 pandemic changed consumer preferences toward low-alcohol, low-sugar RTD cocktails, as well as products with natural ingredients, organic certifications, and sustainable packaging in RTD cocktails. Consumers drastically shifted to online channels to purchase RTD cocktails, leveraging convenience, doorstep delivery, and wider availability of product options. This factor propelled the RTD cocktails market growth during the pandemic.

Competitive Landscape and Key Companies:

The top 10 companies operating in the global RTD cocktails market are Bacardi Limited, Beam Suntory Inc, Boulevard Brewing Co, Bully Boy Distillers LLC, Constellation Brands Inc, Cutwater Spirits LLC, Five Drinks Co, New Holland Brewing Co LLC, Post Meridiem Spirit Co, and The Crown Royal Co. These players offer RTD cocktails with innovative features to attract a large number of consumers.