RTD Alcoholic Beverages Market Analysis

Global RTD Alcoholic Beverages Market Overview

RTD Alcoholic Beverages Market size was valued at USD 30,320.75 million in 2022. The RTD alcoholic beverages industry is projected to grow from USD 50,199.3 million by 2030, exhibiting a compound annual growth rate (CAGR) of 6.53% during the forecast period (2022 - 2030). Ready-to-drink alcoholic beverages are influencing the growth of the overall beverages industry. There has been a rise in consumer demand for convenient and portable alcoholic beverages that offer a ready-to-consume solution without the need for additional mixing or preparation. RTD alcoholic beverages cater to this demand by providing a range of pre-mixed cocktails, spirits, and flavored alcoholic drinks in a convenient packaging format. Additionally, the growing popularity of RTD beverages can be attributed to changing consumer preferences, a shift towards low-alcohol or no-alcohol options, and the desire for innovative and unique flavor profiles.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

RTD Alcoholic Beverages Market Trends

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  DIVERSIFIED FLAVORS AND PREMIUMIZATION DRIVE THE EVOLUTION OF RTD ALCOHOL BEVERAGES

  
  

There has been a significant shift toward premiumization in the alcohol industry. Consumers are increasingly willing to spend more on high-quality, artisanal products with unique and sophisticated flavors. This trend has influenced the development of premium RTD beverages, which combine convenience with premium ingredients and craftsmanship. Manufacturers are focusing on using high-quality spirits, natural ingredients, and innovative production techniques to create RTD options that rival traditional cocktails in terms of taste and presentation. This premiumization has expanded the options available to consumers, catering to those seeking a more refined drinking experience without complex mixology.

Another driving force behind the evolution of the RTD alcohol beverages market is the demand for diversified flavors. Traditional RTD offerings were limited to pre-mixed cocktails like margaritas and mojitos. However, with changing consumer preferences, there has been a surge in the development of new and unique flavors. Manufacturers are experimenting with various ingredients, including fruits, herbs, spices, and botanicals, to create innovative flavor profiles. This diversification allows consumers to explore different taste combinations and find RTD options that align with their preferences. Additionally, natural and exotic ingredients appeal to consumers looking for healthier or more adventurous beverage choices.

RTD Alcoholic Beverages Market Segment Insights

RTD Alcoholic Beverages Type Insights

In the RTD Alcoholic Beverages Market segmentation is bifurcated into alcopop, bottled cocktails, and seltzers. RTD alcopops are also typically packaged in cans or bottles, which makes them easy to transport and consume. One of the key factors contributing to the increased demand for RTD alcopops is their convenience. These pre-mixed cocktails are ready to consume straight from the bottle or can, eliminating the need for additional ingredients or complex mixing techniques. This appeals to consumers who are looking for quick and hassle-free options when it comes to enjoying alcoholic beverages. The rise of health-conscious consumers has also contributed to the demand for RTD alcopops. Many brands have responded to this trend by offering lower-sugar and lower-calorie options, appealing to individuals who want to indulge in a tasty beverage without the guilt associated with higher-calorie alcoholic drinks. Additionally, RTD-bottled cocktails have gained traction among younger consumers seeking innovative and unique beverage options. These products often feature creative and trendy flavors, appealing packaging, and branding that resonates with younger demographics.

Figure 1: RTD Alcoholic Beverages Market, by Type, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

RTD Alcoholic Beverages Packaging Insights Insights

The global RTD alcoholic beverage market segmentation is based on packaging, bottles, and cans. In the RTD Alcoholic Beverages Market, the bottles segment accounted for the largest market share. The most widely used packaging option among beverage producers is the bottle. Glass bottles are popular with consumers because they are sturdy, hygienic, and aesthetically pleasant. Bottle packaging has played a significant role in attracting consumers and supporting the growth of RTD alcoholic beverages worldwide. The market offers various types of bottle packaging, which enhance the visual appeal of RTD alcoholic beverages. These bottle packaging options include standard, premium, and super-premium varieties. The standard bottle packaging is widely utilized in RTD alcoholic beverages due to its affordability and easy availability. The standard glass used in these bottles has been proven to have no impact on the taste, aroma, and potency of the RTD alcoholic beverage. Moreover, the manufacturing cost of standard bottles is relatively lower compared to premium and ultra-premium glass packaging, thus favoring the RTD alcoholic beverages market.

Figure 2: RTD Alcoholic Beverages Market, by Packaging, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

RTD Alcoholic Beverages Distribution Channel Insights

The RTD Alcoholic Beverages Market data has been distinguished into, on-trade and off-trade in the distribution channel. The on-trade distribution offers several advantages for RTD alcoholic beverages. Firstly, it provides a platform for brand exposure and promotion. These establishments often feature well-stocked bars with a wide selection of alcoholic beverages, including RTDs. This allows manufacturers to showcase their products and attract customers through effective marketing and branding strategies. Additionally, the on-trade channel allows for a more experiential and social drinking experience. Consumers can enjoy RTD beverages while socializing or dining out, adding to the overall enjoyment and convenience factor. The atmosphere and ambiance of on-trade venues contribute to the appeal of RTD beverages, making them a popular choice for many consumers. Whereas, Off-trade refers to the distribution channel for ready-to-drink (RTD) alcoholic beverages sold for consumption outside licensed premises, such as bars or restaurants. RTD alcoholic beverages are pre-mixed alcoholic beverages that are packaged conveniently and ready to be consumed without the need for additional preparation or mixing. The off-trade distribution channel includes retail outlets where consumers can purchase RTD alcoholic beverages for off-site consumption. These outlets can include supermarkets, convenience stores, liquor stores, online retailers, and other licensed establishments to sell alcohol for consumption off-premises.

Figure 3: RTD Alcoholic Beverages Market, by Distribution Channel, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

RTD Alcoholic Beverages Category Insights

The RTD Alcoholic Beverages Market data has been diverged into, spirit-based, wine-based, and malt based. Spirit-based ready-to-drink (RTD) mixes are pre-mixed beverages popularly known as alcopops. These beverages are designed to be consumed straight from the container, requiring no additional preparation. Typically, they contain an alcohol content of up to 5% and are made with fresh and high-quality ingredients. Additionally, Wine coolers gained popularity as wine-based ready-to-drink (RTD) cocktails. However, the category has transformed and is now experiencing a resurgence in popularity among health-conscious consumers, particularly women. This shift can be attributed to women perceiving wine as healthier than spirit and malt-based beverages. The market demand for wine-based RTD cocktails has been driven by consumers' belief that wines are healthier than spirits and malts.

Figure 3: RTD Alcoholic Beverages Market, by Category, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

RTD Alcoholic Beverages End User Insights

The RTD Alcoholic Beverages Market data has been diverged into, Residential/Retail and commercial/HoReCa. Residential and retail end users refer to individuals or households who purchase and consume ready-to-drink (RTD) alcoholic beverages within their own homes or from retail establishments. RTD alcoholic beverages are pre-mixed drinks packaged and sold in a ready-to-consume format, requiring little to no additional preparation. For residential end users, RTD alcoholic beverages offer convenience and variety, allowing them to enjoy a range of cocktails and alcoholic beverages without needing extensive bartending skills or access to a wide range of ingredients. These beverages are typically available in cans or bottles; consumers can simply open and enjoy them at leisure. However, the market for ready-to-drink (RTD) alcoholic beverages has witnessed significant growth in recent years, driven by the increasing demand from both the commercial and HoReCa (Hotel/Restaurant/Café) sectors. RTD alcoholic beverages refer to pre-packaged, ready-to-consume beverages that contain alcohol, such as cocktails, spirits, wine, and beer. These products offer convenience, portability, and a wide range of flavor profiles, making them popular among consumers who seek a quick and hassle-free drinking experience. In the commercial sector, RTD alcoholic beverages have become a key component of beverage offerings in bars, nightclubs, and entertainment venues.

Figure 3: RTD Alcoholic Beverages Market, by End User, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

RTD Alcoholic Beverages Regional Insights

By Region, the RTD Alcoholic Beverages Market consists of Europe,  Asia-Pacific, North America, South America, and Middle East & Africa.

The demand for RTD alcoholic beverages is driven by the increasing popularity of convenience and portability, as well as changing consumer preferences and the increasing number of consumers looking for low-alcohol alternatives to traditional alcoholic drinks. The market in Europe is segmented into different product types, including pre-mixed spirits, cocktails, and flavored malt beverages. The pre-mixed spirits segment holds the largest share of the market, followed by cocktails and flavored malt beverages. Germany, UK, and France are the leading markets for RTD alcoholic beverages in Europe, followed by Italy and Spain. These companies are focusing on product innovation, expanding their product portfolios, and strategic partnerships to maintain their market position. In the Europe region, Germany's RTD alcoholic beverages market accounted for the largest country for consumption.

Figure 4: RTD ALCOHOLIC BEVERAGES MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The European alcoholic ready-to-drink (RTD) beverages market is projected to experience a compound annual growth rate (CAGR) of 6.45% from 2023 to 2030. The growth of this market in Europe can be attributed to several key factors, including an increasing emphasis on offering high-quality products and services, rising disposable income, the availability of new flavors, and consumer preference for premium offerings. The demand for various types of RTD alcoholic beverages is rapidly increasing in countries such as Germany, France, Italy, the UK, Russia, and the rest of Europe. This growth is driven by millennials' changing drinking habits and lifestyles, coupled with their increased disposable income. Among young consumers in Europe, beers and wines are gaining popularity. The European market for RTD alcoholic beverages is categorized by base type, packaging type, and distribution channel. The base type segment includes whiskey, rum, vodka, gin, and others, further divided into numerous sub-types. One of the main reasons for the growing size of the RTD alcoholic beverages market is their instant consumption without the need for any mixing process beforehand.

The US is leading in the North American market for RTD alcoholic beverages, with Canada following closely behind. The market for RTD alcoholic beverages is experiencing growth in the United States, primarily driven by increased consumer awareness of the health benefits of these beverages. RTD alcoholic beverages have gained wider acceptance among a larger customer base due to their lower alcoholic content. The market in the US region is also expected to grow due to a shift in consumer lifestyle and a growing inclination towards luxury. Manufacturers in the region are emphasizing innovation and developing new products to stimulate the growth of the North American RTD alcoholic beverages market.

The growing demand for RTD alcoholic beverages can be attributed to several factors. Firstly, consumers increasingly seek convenient and hassle-free options requiring minimal preparation or mixing. RTD beverages offer a ready-to-consume solution, eliminating the need for purchasing multiple ingredients or spending time on cocktail preparation. Secondly, the rise of craft and premium spirits has influenced the RTD market. Many reputable distilleries and breweries have started offering RTD products, providing consumers with high-quality options. This has attracted a broader range of customers who appreciate these beverages' craftsmanship and flavor profiles.

RTD Alcoholic Beverages Key Market Players & Competitive Insights

Collaborations and partnerships also influence the competitive landscape of the RTD alcoholic beverages market. Beverage companies have collaborated with celebrities and influencers to create co-branded products and leverage their fan base. Such partnerships help capture attention, enhance brand image, and expand market reach. Some of the leading companies in the market include Diageo, Bacardi, Pernod Ricard, and Brown-Forman. These companies have a strong track record in the alcoholic beverage industry, and they are well-positioned to capitalize on the growth of the RTD market.

Key Companies in the RTD Alcoholic Beverages market include

• Asahi Group Holdings, Ltd. (Japan),


• Halewood International Limited (UK),


• Mike's Hard Lemonade Co. (US),


• Bacardi Limited (Bermuda),


• The Brown-Forman Corporation (France),


• Pernod Ricard SA (France),


• Anheuser-Busch InBev SA/NV (Belgium),

RTD Alcoholic Beverages Industry Developments

February 2020: Pernod Ricard USA brand in February 2020 introduced a sparkling malt beverage, Malibu Splash. The RTD malt beverage is available in four different flavors including passion fruit, strawberry, pineapple, and lime.

RTD Alcoholic Beverages Market Segmentation

RTD Alcoholic Beverages Type Outlook

• Alcopop


• Hard Seltzers


• Bottled Cocktails

RTD Alcoholic Beverages Packaging Outlook

• Bottles


• Cans

RTD Alcoholic Beverages Distribution Channel Outlook

• On-Trade


• Off-Trade

RTD Alcoholic Beverages End User Outlook

• Residential/Retail


• Commercial/HoReCa

RTD Alcoholic Beverages Nature Outlook

• Spirit Based


• Wine Based


• Malt Based

RTD Alcoholic Beverages Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia & New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa