NEW YORK, April 22, 2024 /PRNewswire/ — The global rtd alcoholic beverages market size is estimated to grow by USD 8028.52 mn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 5.81% during the forecast period. North America held the largest share of the global market in 2022, and the market in the region is estimated to witness an incremental growth of 33%.
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Major Players in the Market
Numerous companies are capitalizing on this growing trend by implementing strategic measures such as alliances, partnerships, mergers, and acquisitions. Among the notable players in the cheese based snacks market are:
Accolade Wines Australia Ltd., Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Bacardi Ltd., Brown Forman Corp., Campari Group, Carlsberg Breweries AS, Constellation Brands Inc., Diageo Plc, Halewood International South Africa Pty Ltd., Heaven Hill Sales Co., Heineken NV, Manchester Drinks Ltd., Mark Anthony Brands International Unlimited Co., MIKES HARD LEMONADE Co., Molson Coors Beverage Co., Pernod Ricard SA, SHS Drinks, The Boston Beer Co. Inc., United Brands LLC
Analyst Review
The RTD Alcoholic Beverages Market encompasses a diverse range of products, including Spirit-based RTDs, Hard Seltzers, High Strength Premixes, Malt-based, and Wine-based beverages. These beverages come in various flavors such as Citrus, Berry, Tropical, and Mixed Fruit. The RTDs category is experiencing significant demand momentum globally among the consumer base. Network layouts play a crucial role in the production and distribution of these beverages. Herbs and botanicals, low-sugar, low-calorie, and low-alcoholic options are gaining popularity. Fruit juices, energy drinks, and dairy beverages are also part of the competitive landscape, with sports nutrition companies entering the market as well.
Key Market Drivers
The RTD Alcoholic Beverages market is experiencing significant growth, driven by the health and wellness trend and the convenience factor. According to Forbes, sales of functional beverages, including premixed cocktails and spirits-based RTDs, increased from USD1.2 billion in 2020 to USD1.6 billion in 2021. This growth is attributed to consumers with hectic lifestyles seeking healthier options, such as lower-calorie and alcohol content RTDs. New product developments, including diversified flavors and packaging formats, are also increasing the inclination towards evolving RTD options. Spirited Hive’s dark spirits-based RTD mixes, containing Scotch, rum, and Bourbon whiskey, are an example of this trend. However, high taxes and strict regulations pose challenges to market growth. Sugar and artificial sweeteners are common concerns for health-conscious consumers, leading some to opt for fermented beverages or non-alcoholic alternatives. Social gatherings continue to drive demand for RTD cocktails and premixed drinks, with popular flavors including strawberry daiquiri, passionfruit, and citrus. The market segment includes Spirit-based RTDs, Hard Seltzers, High Strength Premixes, Malt-based, Wine-based, and various fruit flavors such as Berry, Tropical, and Spiced-Flavored. Gen-Z and Millennials are key consumers, with a preference for convenience and healthier options.
Challenges and Opportunities
The RTD alcoholic beverages market faces complex challenges, including the Liquor Tax Act and Alcohol Sales License, which impact alcohol tax and custom duties. Price fluctuations of raw materials and transportation expenses can affect profitability. Packaging type, flavors in the RTDs category, and consumer preferences drive demand momentum. Network layouts of major players like Accolade Wines shape market dynamics in emerging economies. Product endorsements and heavy taxation influence sales, while negative health effects and advertising face opposition from anti-alcohol campaigns. Hectic lifestyles fuel demand for functional ingredients, such as citrus fruits, herbs, and botanicals in low-sugar, low-calorie, low-alcoholic beverages. RTD fruit juices, energy drinks, dairy beverages, and sports drinks are popular choices. Timeframe considerations include labor shortages and raw material supply, which can lead to closures. Carbonated soft drinks and non-fermented dairy beverages compete with healthy beverage products, while fermented dairy beverages and functional water cater to niche markets. Stay-at-home trends and house parties boost consumer demand.
The RTD Alcoholic Beverages market is experiencing significant growth due to the rising consumer trend towards health and wellness, new product developments, and functional beverages. Premium and upscale options, such as craft and artisanal RTD alcohol beverages, are increasingly popular. These beverages, often produced in small batches using high-quality ingredients, offer a more distinctive and unique drinking experience. Spirited Hive’s organic, botanical RTD cocktails are a prime example. However, high taxes and strict regulations pose challenges for this market. Sugar and artificial sweeteners are common additives, but consumer preferences are shifting towards natural and low-sugar options. Alcoholic beverages segment includes fermented and non-fermented beverages, such as Gatorade, hard seltzers, high strength premixes, malt-based, wine-based, and various flavors like citrus, berry, tropical, and spiced-flavored. Social gatherings continue to drive demand for RTD alcoholic beverages, including premixed cocktails in tetra-pack cartons, such as strawberry daiquiris and passionfruit flavors. Gen-Z and millennials are key consumers, seeking convenience and unique experiences.
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Market Overview
The RTD Alcoholic Beverages market is a significant segment in the beverage industry, featuring a variety of products such as spirits, wines, and flavored malt beverages. These ready-to-drink (RTD) beverages come in different sizes, packaging formats, and flavors, catering to diverse consumer preferences. The market is driven by several factors, including convenience, innovation, and changing consumer demographics. Consumers are increasingly opting for on-the-go options, leading to the growth of the RTD market. The use of advanced technologies in production and packaging has also contributed to the market’s expansion. However, regulatory challenges and competition from other beverage categories pose significant threats to market growth. Companies in the RTD Alcoholic Beverages market are focusing on product innovation, strategic partnerships, and sustainable practices to stay competitive. The market is expected to continue its growth trajectory in the coming years, driven by these trends and consumer preferences.
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio
