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The market dynamics of the US canned cocktails, also known as Ready-to-Drink (RTD) cocktails, are shaped by several factors that influence their growth, trends, and competition. Canned cocktails have experienced a surge in popularity in recent years due to changing consumer preferences and lifestyle trends. One of the primary drivers of this market is the increasing demand for convenience and portability among consumers. Canned cocktails offer a convenient and hassle-free way to enjoy mixed drinks without the need for bartending skills or the hassle of purchasing multiple ingredients. This convenience factor makes canned cocktails particularly popular for outdoor activities, picnics, parties, and other social occasions where traditional cocktails may be impractical or inconvenient to prepare.
Moreover, the rise of the millennial and Gen Z demographics has contributed to the growing popularity of canned cocktails. Younger consumers are drawn to the convenience and novelty of canned cocktails, as well as their Instagram-worthy packaging and creative flavor profiles. Canned cocktails appeal to the modern consumer's desire for experiential and shareable products that fit their on-the-go lifestyles and social media-driven culture.
Furthermore, the COVID-19 pandemic has accelerated the growth of the canned cocktails market, as consumers have increasingly turned to packaged beverages for at-home consumption. With bars and restaurants closed or operating at limited capacity during lockdowns, many consumers have sought out convenient alternatives to traditional cocktails for enjoying at home. Canned cocktails offer a convenient and cost-effective solution for consumers looking to recreate the bar experience in the comfort of their own homes, driving sales and market growth.
In addition to changing consumer preferences, market dynamics in the US canned cocktails market are influenced by factors such as product innovation, marketing strategies, and distribution channels. Manufacturers are constantly introducing new flavors, ingredients, and packaging formats to cater to diverse consumer tastes and preferences. Marketing efforts, including social media campaigns, influencer partnerships, and in-store promotions, play a crucial role in raising awareness and driving demand for canned cocktails.
Moreover, the expanding distribution network has facilitated greater accessibility to canned cocktails for consumers across various retail channels, including supermarkets, convenience stores, liquor stores, and online platforms. The availability of canned cocktails in mainstream retail outlets has made it easier for consumers to purchase and enjoy them on a regular basis, further driving market growth.
Additionally, market dynamics are influenced by regulatory considerations, quality standards, and supply chain logistics. Manufacturers must comply with alcohol regulations and labeling requirements to ensure the quality and safety of their canned cocktails. Quality standards and certifications, such as organic and gluten-free certifications, can also impact consumer purchasing decisions and brand perception in the canned cocktails market. Efficient supply chain management, including sourcing of ingredients, production processes, and distribution logistics, is essential for meeting consumer demand and maintaining product freshness and quality.
US Canned Cocktails (RTD Cocktails) Market Highlights:
Canned Cocktails (RTD Cocktails) Market Overview
US Canned Cocktails (RTD Cocktails) Market Size was valued at USD 7.5 Billion in 2023. The canned cocktails (RTD cocktails) industry is projected to grow from USD 7.9 Billion in 2024 to USD 13.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.50% during the forecast period (2024 - 2032). One of the main market driver boosting the canned cocktail (RTD cocktail) market is the surge in demand for flavored drinks with reduced alcohol content due to growing health concerns.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Canned Cocktails (RTD Cocktails) Market Trends
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Growing Interest in Flavored Drinks with Low Alcohol Content will Boost the Market Growth
Alcohol use is declining as a result of consumers' growing attention to their health and wellbeing. The canned cocktail (RTD cocktail) appeal to consumers who are health-conscious since they have added tastes like lemon, cranberry, orange, and passion fruit, and they have a low alcohol content (4% to 7%). As a result, over time, low alcohol by volume (ABV) drinks have become more popular. They are used in place of wine and other spirits by consumers who are moderate drinkers or who wish to cut back on their alcohol intake. Additionally, the growing need for handy products and evolving lifestyles are what propel market expansion. Market demand is driven by innovations in canned cocktail (RTD cocktail) made with real fruit juices and no artificial sweeteners. Furthermore, the availability of canned cocktail (RTD cocktail) that are gluten-free, organic, and ketogenic encourages more customers to use these products.
In addition, due to their hectic lifestyles and tight work schedules, customers choose ready-to-eat and ready-to-drink items, which is what drives the need for canned cocktail (RTD cocktail). With an increasing number of working women, the working population is predicted to fuel the market for canned cocktail (RTD cocktail). Many consumers prefer to provide prepared beverages at social events and house parties, which fuels the demand for canned cocktail (RTD cocktail). The millennial generation's increasing love for cocktails is anticipated to be a major driver of the canned cocktail (RTD cocktail) market's expansion. Moreover, they have reduced the amount of time and energy needed to make a cocktail, enticing beginners to try these concoctions at home. The canned cocktail (RTD cocktail) provide customers the convenience of enjoying their preferred drinks wherever they are and the rapid gratification they anticipate. Since they don't have enough time to cook all day, young consumers these days are willing to spend more money on convenient and healthful food and drink options. There may be more room to develop in this industry due to the growing demand for premium, organic, canned cocktail (RTD cocktail). Thus, driving the canned cocktails (RTD cocktails) market revenue.
Canned Cocktails (RTD Cocktails) Market Segment Insights
Canned Cocktails (RTD Cocktails) Alcohol Base Insights
The US Canned Cocktails (RTD Cocktails) market segmentation, based on alcohol base includes malt-based, spirit-based, and wine-based. The spirit-based segment dominated the market mostly. These single-serve drinks come in a variety of tastes and can have an alcohol content of up to 5%. They are often mixed with additional components, like juices. In these cocktails, popular spirits including rum, vodka, gin, tequila, and whiskey are frequently utilized. Spirit-based cocktails have grown in popularity among customers as the best option in the alcoholic beverage category thanks to their wide variety of alternatives, which include infused tastes like ginger, rose, and lavender.
Canned Cocktails (RTD Cocktails) Packaging Insights
The US Canned Cocktails (RTD Cocktails) market segmentation, based on packaging, includes bottles and cans. The bottles category generated the most income. RTD cocktails were first offered in bottle form and quickly became well-known all over the world. But utilizing glass bottles has become more popular as a result of the aluminum shortage in nations like the United States. The demand for glass bottles of RTD cocktails has surged globally as a result of this market trend.
Figure 1: US Canned Cocktails (RTD Cocktails) Market, by Packaging, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Canned Cocktails (RTD Cocktails) Distribution Channel Insights
The US Canned Cocktails (RTD Cocktails) market segmentation, based on distribution channel, includes Hypermarkets/Supermarkets, Online, and Liquor Stores. The hypermarkets/supermarkets category generated the most income. The high consumer preference for buying groceries from supermarkets, convenience stores, specialty shops, and grocery stores is projected to keep this segment leading during the projection period. Supermarkets and hypermarkets are preferred by customers due to their wide selection of products and easy shopping.
Canned Cocktails (RTD Cocktails) Country Insights
The canned cocktail (RTD cocktail) market in the US is expanding significantly over the course of the projected period. The region's rising demand for drinks with vodka and whiskey as its main ingredients is propelling the market's expansion. These ready-made cocktails are a great option for younger customers because of their reduced alcohol content and lower cost when compared to those offered in bars. Additionally, the may be linked to consumers' growing desire for a broad range of flavors and their evolving inclination toward portable, convenient goods. Moreover, market’s growth is predicted to be driven by the increasing trend of selling ready-to-drink cocktails through online distribution channels, especially e-commerce platforms like Walmart, Amazon, and others. The U.S. Census Bureau estimates that overall food and beverage product retail sales through online platforms will reach USD 6,912 over the course of the forecast year, from USD 3,347 million in Q1, 2020. Given the state of the world economy, the market for ready-to-drink cocktails from this region is therefore expanding steadily and quickly.
Canned Cocktails (RTD Cocktails) Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the canned cocktails (RTD cocktails) market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, canned cocktails (RTD cocktails) industry must offer cost-effective items.
Major players in the canned cocktails (RTD cocktails) market are attempting to increase market demand by investing in research and development operations includes The Absolut Company, House of Delola, LLC, Diageo plc, Brown-Forman, Bacardi Limited, Asahi Group Holdings, Ltd., Pernod Ricard, Halewood Wines & Spirits, Shanghai Bacchus Liquor Co., Ltd., Suntory Holdings Limited, Manchester Drinks Company Ltd., and Anheuser-Busch InBev.
Key Companies in the canned cocktails (RTD cocktails) market include
- The Absolut Company
- House of Delola, LLC
- Diageo plc
- Brown-Forman
- Bacardi Limited
- Asahi Group Holdings, Ltd.
- Pernod Ricard
- Halewood Wines & Spirits
- Shanghai Bacchus Liquor Co., Ltd.
- Suntory Holdings Limited
- Manchester Drinks Company Ltd.
- Anheuser-Busch InBev
Canned Cocktails (RTD Cocktails) Industry Developments
April 2023: A premium line of spirit-based and organic RTD cocktails called "The House of Delola" was introduced by American singer and actress Jennifer Lopez. The three flavors that were introduced were Bella Berry Spritz (10.5% ABV), L'Orange Spritz (10.5% ABV), and Paloma Rosa Spritz (11.5% ABV). These fruit-infused cocktails are lower in calories and more flavorful.
January 2022: Constellation Brands Inc. and The Coca-Cola Company inked a brand authorization agreement for the introduction of FRESCA Mixed, a range of richly flavored, spirit-based RTD drinks, in the United States. In order to provide a transition between crisp hard seltzers and richly flavored bar drinks, the FRESCA brands hope to attract customers looking for more flavorful experiences and premium RTD beverages.
Canned Cocktails (RTD Cocktails) Market Segmentation
Canned Cocktails (RTD Cocktails) Alcohol Base Outlook
- Malt-based
- Spirit-based
- Wine-based
Canned Cocktails (RTD Cocktails) Packaging Outlook
- Bottles
- Cans
Canned Cocktails (RTD Cocktails) Distribution Channel Outlook
- Hypermarkets/Supermarkets
- Online
- Liquor Stores
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