Rtd Alcoholic Beverages Market

Global Market Study on RTD Alcoholic Beverages: Spirit-based RTDs and Hard Seltzers to Witness High Demand

About the Report

Sales of RTD alcoholic beverages are rising due to increasing popularity among gen-Z and millennials, as RTD is a convenient drink as compared to other spirits. The scope of the report by Persistence Market Research covers the consumption assessment of RTD alcoholic beverages produced from spirits, malts, and wines, along with high strength premixes, seltzers, and other alcoholic beverages in different flavors such as citrus, berries, tropical fruits, mixed fruits, spices, and other fruit flavors. Also, end users such as foodservice industry and retail/household and distribution channels of RTD alcoholic beverages have been analyzed in detail.

Manufacturers’ effort in offering high-quality RTD alcoholic beverages in sweet, tropical fruit, berry, and mixed fruit flavors that have a touch of spirit is the major driver that is expected to propel demand over the forecast period of 2020 to 2030. The report also talks about the factors responsible for rapid growth across South Asia and East Asia, and also analyzes the impact COVID-19 has had on the alcoholic beverage market in general, and demand for RTD alcoholic beverages in particular.

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Companies

  • Anheuser-Busch InBev
  • Diageo PLC
  • Bacardi Limited
  • Halewood Wines & Spirits
  • Mark Anthony Group of Companies
  • Inspyration Siam Co., Ltd.
  • Brown-Forman
  • Manchester Drinks
  • Molson Coors Beverage Company
  • The Boston Beer Company
  • Davide Campari-Milano N.V.
  • Asahi Group Holdings, Ltd.
  • Carlsberg Breweries A/S
  • SHS Group 
  • Pernod Ricard SA
  • Global Brands Ltd.
  • Radico Khaitan Limited
  • La Martiniquaise
  • Suntory Holdings Limited
  • Constellation Brands Inc.

Why are Future Projections for RTD Alcoholic Beverages Brighter than Historical Trends?

From 2015-2019, the RTD alcoholic beverages market experienced a value growth of 5.4%. Sales were high due to increasing demand for convenient and flavored alcoholic beverages. “Drinking less, but better” is the emerging trend in the global alcoholic beverage market. RTD alcoholic beverages are made with this concept having low alcohol content and high sensory taste with unique flavors. Companies are focused on fulfilling consumer demand through beverages with a touch of spirits. RTD alcoholic beverages are the ideal choice for consumers who seek low alcoholic beverages. Overall, the RTD alcoholic beverages market is expected to expand even faster over the coming years, at a CAGR of close to 8% through 2030.

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Will Premiumization Trend in Alcoholic Beverages Support Market Growth? 

Rise in the middle-income population and modernization of lifestyles are leading to changing taste preferences, which are factors that contribute to the demand for premium RTD alcoholic beverage products. Besides, consumer demand for highly malted and preserved alcoholic beverages is rising due to the increasing popularity of premium quality alcoholic beverages. RTD alcoholic beverages made by using premium quality alcoholic beverages are gaining popularity among consumers. Besides, premium RTDs having unique flavor profiles introduced by the manufacturers are gaining increased attention of consumers. Key players manufacturing RTD alcoholic beverages are focusing on the production of premium products to meet increasing demand from consumers.

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Is Rising Focus on Health & Wellness Driving Demand for RTD Alcoholic Beverages?

In recent years, consumers have become more informed than ever. Increasing urbanization, pollution, and busy lifestyles are affecting the health of consumers across the world. Owing to that, consumers are seeking alcoholic products with natural ingredients and low alcohol content. Besides, the concept of RTD alcoholic beverages is based on convenience and flavored beverages. Also, key players are focused on using natural and organic ingredients in the production of RTD alcoholic beverages. These factors are expected to boost demand for RTD alcoholic beverages over the coming years.

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How is Innovation & Brand Building Favoring Demand for RTD Alcoholic Beverages? 

The RTD alcoholic beverage category is becoming increasingly competitive. Hence, to gain an advantage over their peers, manufacturers are focused on innovation and strive to launch new products in the premium category along with seasonal products. Besides, manufacturers are focusing on the development of new products using unique flavors and blends, along with premium alcohol as a base spirit, which is popular among consumers. These factors considerably influence sales of RTD alcoholic beverages. Moreover, key players also focus on developing new and premium RTD alcoholic beverage offerings to sustain their positions in this competitive market.

  • The Suntory Holdings Limited offers innovative RTD beverages in different flavors for a limited period. These products are launched in accordance with the seasonal demands of customers.

Will Convenience Offered by RTD Alcoholic Beverages Over Traditional Spirits Mark an Opportunity for Manufacturers? 

Beer and soda are no longer the only beverages that come in cans. Canned wines, hard seltzers, and RTD cocktails have all become mainstream. They give consumers the ease of drinking their favourite products at the location of their choice and with the instant satisfaction they’ve come to expect. RTD alcoholic beverages offer the grab-and-go convenience that fits into busy, yet healthy lifestyles. Besides, they offer more sensory taste and flavor compared to traditional drinks such as beer and ciders. Also, these are premixed with unique cocktails under the observation of experts in the alcohol beverage industry. These factors are creating huge opportunities for key manufacturers of RTD alcoholic beverages across regions.

What are the Challenges Faced by RTD Alcoholic Beverage Manufacturers? 

In most countries, The Liquor Tax Act states that one may not sell alcoholic beverages unless possessing a wholesale dealer's license for all alcoholic beverages or imported alcoholic beverages to be sold to retailers, or a general retail dealer's license for alcoholic beverages to be sold to general consumers, owners of eateries and drinking establishments, or confectionery manufacturers, and a mail-order retail dealer's license for alcoholic beverages to be sold by mail order retailing. These processes take a long time and require several legal documents, which restricts the overall growth of the global RTD alcoholic beverages industry.

  • For Instance, in the U.K., to obtain an alcohol sales license, around 14 different applications need to be submitted, and the applicant must take permission from 10 different government departments.

The most obvious example of an area of regulation that is particularly complex and burdensome is alcohol tax. There are different tax rates across various categories of alcohol. In some countries, alcohol tax is as high as 70% of the price of the bottle, and it starts from at least 30%. Apart from taxes, custom duties are also high in many countries, which puts additional burden on manufacturers.

Country-wise Analysis

Why is More than 25% of Global Market Share Accounted for by the U.S.? 

The U.S. is one of the dominant countries in the global alcoholic beverages market. The number of alcohol consumers in the U.S. is higher than any other country, especially in the premium category. In recent years, U.S. consumers have been highly inclining toward low alcoholic beverages such as beer, cider, and RTD alcoholic beverages. However, in the last three years, consumption of RTD beverages in the U.S. has increased dramatically owing to their convenience and flavor profiles. Hard seltzer is a relatively new type of alcoholic beverage that has seen rapid growth in popularity and demand in recent years in the country. Seltzers are emerging as an alternative to beer and cider products. According to the Mark Anthony Group of Companies, consumption volume of beer in the U.S. has reduced 3% to 4% in the last two years, and the seltzer category has witnessed a growth of around 200% in 2019-2021. 

Why Does the U.K. Hold the Highest Value & Volume Share in Europe’s RTD Alcoholic Beverages Industry?

The U.K. is one of the leading producers and consumers of alcoholic beverages in Europe. In recent years, the trend of low alcoholic beverage consumption has widely influenced growth of the RTD market in the U.K. Consumers are seeking new, unique, and convenient alcoholic beverages, leading to increased consumption of RTD alcoholic beverages. Besides, domestic players are inclining toward producing and promoting RTD alcoholic beverages in the U.K., which makes it a prominent market in Europe. The U.K. holds around 13% of the value share in the European RTD alcoholic beverages market. 

Category-wise Insights

Will Consumer Preference for Seltzers Benefit Market Growth? 

Hard seltzer, spiked seltzer, or hard sparkling alcohol water is a type of highball drink containing carbonated water, alcohol, and often fruit flavoring. This is one of the simple and light premixed alcoholic beverages. Alcoholic seltzers are emerging as an alternative to beer and ciders due to their simple and natural ingredients and flavoring. This category is gaining huge popularity in the North American region due to high consumer demand for light and low alcoholic beverages. Besides, it is expected to witness a healthy growth rate of 9.0% and 11% in Europe and East Asia, respectively. Thus, the seltzer category is widely contributing to surging demand for RTD alcoholic beverages.

How is the Travel Retail Sector Fuelling Demand for RTD Alcoholic Beverages? 

Travel retail is one of the fastest-growing industries across the globe, and is anticipated to play a significant role in the demand growth for alcoholic beverages. This is attributed to the fact that more than 1 billion tourists cross international borders every year. Airports, airlines, crosslines, border shops, diplomatic business, and other modes of travel are the key sources of business for manufacturers of alcoholic beverages. RTD alcoholic beverage manufacturers can focus on increasing their sales in the travel retail market by offering premium products. 

  • Pernod Ricard SA considers travel retail as a sixth continent with an audience of 3.6 billion international travellers, and growing.

Competition Landscape

Persistence Market Research has profiled the following prominent RTD alcoholic beverage manufacturers in its report:

  • Anheuser-Busch InBev
  • Diageo PLC
  • Bacardi Limited
  • Halewood Wines & Spirits
  • Mark Anthony Group of Companies
  • Inspyration Siam Co., Ltd.
  • Brown-Forman
  • Manchester Drinks
  • Molson Coors Beverage Company
  • The Boston Beer Company
  • Davide Campari-Milano N.V.
  • Asahi Group Holdings, Ltd.
  • Carlsberg Breweries A/S
  • SHS Group
  • Pernod Ricard SA
  • Global Brands Ltd.
  • Radico Khaitan Limited
  • La Martiniquaise
  • Suntory Holdings Limited
  • Constellation Brands Inc.

The packaging and design of any product plays a key role in the recognition of the brand and determines its value in the market. As such, the packaging and design of alcoholic beverages plays a key role in the sales of these products. Generally, these aspects define the uniqueness, history, and quality of the product. The main characteristics of RTD alcoholic beverages are their ABV content, flavor, and spirit used in the product. Owing to these factors, manufacturers of RTD alcoholic beverage products are investing in innovative packaging and designing of unique bottles and cans to make their products more descriptive, unique, and attractive in the market.  

  • Bacardi Limited focuses on expansion by adding new products to its existing product portfolios such as packaging, unique and sensory flavors, and long matured blends with effective marketing.
  • Manchester Drinks is equally creative in the soft drinks sector, with a host of exciting product & packaging solutions. From cordial shots, to functional reusable water pouches, to innovative ready-to-drink slush for retail, the company keeps a keen eye one evolving trends.
  • La Martiniquaise strives to produce premium quality products with unique packaging and design to attract customers. This helps the company develop new products that are in line with market trends and captivate a growing customer base.

Report Scope

Attribute

Details

Forecast Period

2020-2030

Historical Data Available for

2015-2019

Market Analysis

US$ Mn for Value & 000’ Liters Units for Volume

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa

Key Countries Covered

  • US
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Vietnam
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa

Key Segments Covered

  • Product
  • Flavor
  • End Use
  • Distribution Channel
  • Region

Key Companies Profiled

  • Anheuser-Busch InBev
  • Diageo PLC
  • Bacardi Limited
  • Halewood Wines & Spirits
  • Mark Anthony Group of Companies
  • Inspyration Siam Co., Ltd.
  • Brown-Forman
  • Manchester Drinks
  • Molson Coors Beverage Company
  • The Boston Beer Company
  • Davide Campari-Milano N.V.
  • Asahi Group Holdings, Ltd.
  • Carlsberg Breweries A/S
  • SHS Group
  • Pernod Ricard SA
  • Global Brands Ltd.
  • Radico Khaitan Limited
  • La Martiniquaise
  • Suntory Holdings Limited
  • Constellation Brands Inc.

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Key Questions Answered in Report

  • Which is the most lucrative market for RTD alcoholic beverages?

As per Persistence Market Research’s projections, China and India are expected to offer significant value CAGR over the forecast period.

  • Which is the most used source for RTD alcoholic beverages?

Sales of RTD alcoholic beverages made from spirits account for around 35% market share.

  • Which are some of the leading companies offering RTD alcoholic beverages?

Companies such as Diageo PLC, Bacardi Limited, Anheuser-Busch InBev, Mark Anthony Group of Companies, Brown-Forman, Suntory Holdings Limited., The Boston Beer Company, Molson Coors Beverage Company, Constellation Brands Inc., Asahi Group Holdings, Ltd., and Pernod Ricard SA are some of the key players offering RTD alcoholic beverages.

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  • Is the research conducted by Persistence Market Research?

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Key Market Segments

Product

  • High Strength Premixes
  • Malt-based RTD Alcoholic Beverages
  • Spirit-based RTD Alcoholic Beverages
  • Wine-based RTD Alcoholic Beverages
  • Hard Seltzers
  • Other RTD Alcoholic Beverages

Flavor

  • Citrus RTD Alcoholic Beverages
  • Berry RTD Alcoholic Beverages
  • Tropical RTD Alcoholic Beverages
  • Mixed Fruit RTD Alcoholic Beverages
  • Spice-flavored RTD Alcoholic Beverages
  • Others 

End Use

  • Retail/Household
  • Foodservice Industry

Distribution Channel

  • Business to Business
  • Business to Consumer
    • Hypermarkets/Supermarkets
    • Specialty Stores
    • Online Retail
    • Others

Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa (MEA)

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