Food and Beverages

Ready to Drink Cocktails Market

Global Industry Analysis and Forecast 2024-2031

Pages : 120

Base Year : 2023

Released Year : April 2024

Format :Pdf Ppt Xls

Report ID:KR637

Author : Priyanka V.

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Base Year

2023

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Forecast Year

2024-2031

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Historical Years

2019-2022

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Market Value (2023)

USD 18.07 Billion

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Forecasted Value (2031)

USD 51.27 Billion

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CAGR (2024 - 2031)

13.9%

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Fastest Growing Region (2024 - 2031)

Latin America

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Largest Region

North America

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By Type

Wine-Based, Spirit-based, Malt-based

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By Distribution Channel

Hypermarkets/Supermarkets, Liquor stores, Bars and Restaurants, Others


Market Perspective

The global Ready-to-Drink Cocktails Market was valued at USD 18.07 billion in 2023 and is projected to reach USD 51.27 billion by 2031, growing at a CAGR of 13.9% from 2024 to 2031.

The ready-to-drink cocktails market has witnessed significant growth in recent years, primarily due to the rising consumer demand for convenient and high-quality beverage options. With individuals leading busy lifestyles and showing an increasing interest in craft cocktails, there is a growing preference for ready-to-drink alternatives to fulfill their cocktail needs. These pre-mixed beverages offer a quick and effortless solution for consumers to enjoy delicious cocktails without the need for ingredient measurement and mixing. Furthermore, the growth of the market has been driven by the surge in at-home entertainment and the growing popularity of cocktail culture. In response to this, companies are introducing a wide range of innovative and unique ready-to-drink cocktail options to capitalize on the expanding demand. This includes the introduction of classic flavors such as margaritas and mojitos, as well as innovative offerings such as jalapeño pineapple margaritas and lavender lemonade martinis, thereby ensuring a diverse range of ready-to-drink cocktails available to cater to every consumer's taste preference.

Furthermore, catering to a diverse consumer base, from skilled mixologists aiming to optimize their home bar configurations to consumers seeking easily crafted sophisticated cocktails the burgeoning market for ready-to-drink varieties accommodates a wide range of tastes and preferences. Furthermore, the extensive array of flavors and combinations offered ensures a continually diverse selection of drink options, thereby eliminating the need for a comprehensive inventory of spirits and mixers. Consequently, ready-to-drink cocktails exemplify the confluence of convenience and luxury, providing a direct and enjoyable approach to experiencing premium drink options across diverse settings and times.

Analyst’s Review 

The ready-to-drink cocktails market has experienced substantial growth in recent years, driven by rising consumer demand for premium offerings to enjoy cocktails conveniently at home or on the go. Furthermore, the trend towards upscale and artisanal selections, coupled with an increased fascination with distinctive flavors and creative packaging, engages the consumer demographic. Furthermore, the emergence of online shopping and direct-to-consumer sales channels has created new avenues for brands to directly reach consumers and expand their market presence. This shift has intensified competition in the ready-to-drink cocktails market, as brands strive to differentiate themselves through inventive flavors and packaging. As consumers become more innovative in their cocktail choices, the demand for distinctive and exotic flavors is projected to continue to grow in the forthcoming years. With the convenience of online shopping and direct-to-consumer sales channels, brands have the opportunity to directly engage with their target audience and foster a loyal customer base through personalized marketing strategies. In this rapidly evolving market landscape, maintaining a competitive edge through trend anticipation and fulfilling consumer expectations is essential for brands seeking to achieve success within the ready-to-drink cocktails sector.

Market Definition

Ready-to-drink cocktails, or RTDs, are pre-mixed alcoholic beverages that are packaged and sold in a ready-to-consume format. These cocktails are specifically designed to provide convenience and ease of consumption, making them a popular choice for on-the-go or outdoor settings. The regulatory landscape for ready-to-drink cocktails varies across countries, with specific guidelines on alcohol content, labeling requirements, and packaging restrictions differing between regions. For instance, in the United States, the Alcohol and Tobacco Tax and Trade Bureau (TTB) plays a key role in regulating the production and labeling of RTDs to ensure consumer safety and transparency.

Additionally, the ready-to-drink cocktails come in a variety of options, ranging from classic choices such as margaritas, mojitos, and cosmopolitans, to innovative flavors and combinations that cater to diverse tastes. In recent years, there has been a notable increase in the popularity of ready-to-drink cocktails due to their convenience and quality. As the demand for RTDs continues to grow, companies in the industry are constantly innovating and introducing new flavors and packaging options to appeal to a wider consumer base.

Market Dynamics

The increasing inclination of consumers toward premium, artisanal products is boosting the demand for ready-to-drink cocktails. This demand for craft and premium options has led market participants to offer convenient yet sophisticated choices. Consumers prioritize quality and flavor, leading to an expansion of innovative and premium ready-to-drink cocktail options. The emphasis on craftsmanship and authenticity has attracted a new segment of consumers who are willing to pay a premium for a superior drinking experience. This trend has further fostered collaborations between renowned mixologists and beverage companies, raising the bar for these products. The market is experiencing increased creativity and innovation attributed to the use of fresh, high-quality ingredients and the exploration of unique flavor combinations. With the rising demand for premium ready-to-drink cocktails, consumers are not willing to compromise quality for convenience. These aforementioned factors are likely to contribute significantly to the growth of the ready to drink cocktails market in the near future.

However, the high prices of premium cocktails present a major obstacle to the growth of the ready-to-drink cocktail market. Consumers are often deterred from purchasing ready-to-drink options due to the convenience and cost-effectiveness of preparing a comparable cocktail at home. This has created a barrier for the ready-to-drink market to attract a wider audience of consumers looking for convenience and affordability in their cocktail choices.

 Segmentation Analysis

The global ready to drink cocktail market is segmented based on type, distribution channel, and geography.

Based on type, the market is bifurcated into wine-based, spirit-based, and malt-based. The spirit-based segment dominated the ready to drink cocktails market with a significant share of 45.33% in 2023. This dominance can be attributed to the premium quality and authenticity of ingredients used in these products. Consumers are increasingly preferring products that offer a more sophisticated and elevated drinking experience, and spirit-based cocktails deliver on that expectation. Additionally, the wide variety of flavors and options available within the spirit-based segment caters to a diverse range of preferences, making it a popular choice among consumers looking for convenience without compromising on taste. This focus on quality and variety has allowed spirit-based ready-to-drink cocktails to maintain their dominance in an increasingly competitive market.

Based on distribution channel, the market is bifurcated into hypermarkets/supermarkets, liquor stores, bars and restaurants, and others. Liquor stores acquired the largest market share of 40.50% in 2023, due to their strategic positioning and wide range of offerings. By being located in convenient locations and offering a diverse selection of pre-mixed cocktails, liquor stores have become the go-to destination for consumers looking for quick and easy drink options. Additionally, these stores often have knowledgeable staff who can provide recommendations and guidance to customers, making the shopping experience more personalized and enjoyable. The combination of accessibility, variety, and expertise has solidified the liquor stores' stronghold in the ready-to-drink cocktail market.

Geographical Analysis

Based on region, the global ready to drink cocktail market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Ready to Drink Cocktails  Market Size & Share, By Region, 2024-2031

North America accounted for the largest market share of 36.63% in 2023, primarily driven by its strong tradition of cocktail culture. The United States, in particular, has a long history of mixology and cocktail innovation, dating back to the Prohibition era when creative bartenders developed new recipes to mask the taste of bootleg liquor. This tradition persists in metropolitan cities such as New York and San Francisco, where craft cocktail bars have gained international recognition for their innovative and premium-quality drinks. Additionally, the convenience and portability of ready-to-drink cocktails have made them a popular choice for busy urban professionals seeking to enjoy a cocktail without the necessity of personally mixing ingredients.

Latin America is anticipated to register the highest CAGR over the forecast period in the ready to drink cocktails market due to its rich cultural heritage and tradition of enjoying flavorful beverages. The region's diverse array of tropical fruits and spirits provides a unique and authentic experience for consumers looking for new and innovative cocktail options. Additionally, the popularity of Latin American cuisine worldwide has contributed to the increasing demand for ready-to-drink cocktails inspired by traditional recipes and flavors from the region. The combination of quality ingredients, innovative recipes, and cultural influence has increased the demand for ready to drink cocktails in the region.

Competitive Landscape

The global ready to drink cocktails market study will provide valuable insights with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Expansion & investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing extensively in R&D activities, building new manufacturing facilities, and supply chain optimization.

The major players in the Ready to Drink Cocktails Market are:

  • 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.

Key Developments

  • April 2023(Product Launch): Absolut launched three variants of RTD cocktails, comprising coffee, strawberry, and passion fruit flavors. This new product range, characterized by its modest 5% ABV, was introduced in the UK market in May 2023.
  • April 2023(Product Launch): American singer and actress Jennifer Lopez launched ‘The House of Delola’, a premium range of spirit-based and organic RTD cocktails. Available in three flavors, namely Bella Berry Spritz (10.5% ABV), L’Orange Spritz (10.5% ABV), and Paloma Rosa Spritz (11.5% ABV), these cocktails are enhanced with fruit flavors and lower calorie content.

The global Ready to Drink Cocktails Market is segmented as:

By Type

  • Wine-Based
  • Spirit-based
  • Malt-based

By Distribution Channel

  • Hypermarkets/Supermarkets
  • Liquor stores
  • Bars and Restaurants
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • UK
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
CHOOSE LICENCE TYPE
CUSTOMIZATION OFFERED
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global ready to drink cocktails market is projected to reach USD 51.27 billion by 2031, growing at a CAGR of 13.9% from 2024 to 2031.
The global ready to drink cocktails market was valued at USD 18.07 billion in 2023.
The major driving factor for the market growth is rising interest in craft and premium alcoholic beverages, including RTD cocktails that offer unique flavors and high-quality ingredients.
Top manufacturers of ready to drink cocktails market are as 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, and Manchester Drinks Company Ltd., among others.
Latin America is the fastest growing region with the CAGR of 15.6% in the forecasted period (2024-2031) with the market value forecasted to reach at USD 6.20 billion.
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