Global Ready To Drink Cocktails Market Study
Global Ready To Drink Cocktails Market segmented by Alcohol base (Beer based - (Ale, Lager, Hybrid), Malt based, Wine based - (Sparkling, Fortified, Others), Distilled Spirits- (Rum, Whiskey, Vodka, Others)) & by Region - Forecast and Analysis 2020-2027
Market Insights
The global ready to drink cocktails market was valued at USD 4,510.51 Million in 2020, and it is expected to reach a value of USD 14,580.3 Million by 2027, at a CAGR of 16.20% over the forecast period (2020 - 2027).
Ready to drink cocktails is a flavored carbonated alcoholic beverage that contains low calories and carbohydrates in comparison to other alcoholic beverages. Rising demand for low alcohol content, low calories, and gluten-free beverages is driving the growth of the market. Additionally, increased disposable income and overall spending on alcoholic beverages are also contributing to market growth in the given forecast period.
Ready to drink cocktails has gained enormous popularity due to effective social media marketing that has sold Ready to drink cocktailss as a “healthier” alcohol choice. Ready to drink cocktails's growth is also due to numerous manufacturers entering the market and offering a large variety of products and multiple product launches. For instance, in May 2020 Kopparberg, a Swedish manufacturer launched a range of Ready to drink cocktails drinks in the U.K.
Segmental Analysis
The global ready to drink cocktails market is segmented based on Distribution channel, Packaging, Type, and Region. Based on Distribution Channel it is categorized into: Online and Offline. Based on Packaging it is categorized into: Bottles, Cans. Based on Types it is categorized into: Wine-based, Spirit-based, Malt-based. Based on region it is categorized into: North America, Europe, Asia-Pacific, South America, and MEA.
Analysis by Distribution Channel
The global market has been classified into two categories based on distribution channels: off-trade and on-trade. In 2021, the largest distribution channel segment, off-trade, had a revenue share of around 70%. Hypermarkets, supermarkets, convenience stores, micro-markets, and wine and spirit shops all fall into this category. People choose these establishments because they provide substantial discounts and exclusive incentives. Furthermore, to reach the largest number of people, the majority of brands launch their products through major grocery chains such as Walmart, Target, and others.
Analysis by Packaging Type
Metal cans were valued at USD 1,976.6 million in 2020 and are predicted to be worth USD 5,330.7 million by 2027, with a CAGR of 11.9%. Metal cans have been gaining significant market share in the worldwide Ready to drink cocktails market, and this trend is projected to continue over the forecast period. Metal cans are widely used as containers in the beverage industry due to their commercial advantages, which include durability, multi-color printing, marketing assistance, convenience, and sustainability. Furthermore, beverages in metal packaging do not require any additions, do not lose their nutritive properties, and retain their natural flavor for a long period.
Analysis by Packaging Type
Metal cans were valued at USD 1,976.6 million in 2020 and are predicted to be worth USD 5,330.7 million by 2027, with a CAGR of 11.9%. Metal cans have been gaining significant market share in the worldwide Ready to drink cocktails market, and this trend is projected to continue over the forecast period. Metal cans are widely used as containers in the beverage industry due to their commercial advantages, which include durability, multi-color printing, marketing assistance, convenience, and sustainability. Furthermore, beverages in metal packaging do not require any additions, do not lose their nutritive properties, and retain their natural flavor for a long period.
Market Dynamics
Driver
The rise in consumer demand for convenient and innovative refreshing drinks is a major driver of the ready to0 drink cocktails market. The shift in their taste preferences, as well as their increasing experimentation with new flavors and tastes in alcoholic and nonalcoholic beverages, has aided market growth. Furthermore, manufacturers are introducing trendy flavors like passion fruit, ginger beer, and pickle juice for consumers who find it difficult to resist trying new flavors.
Ready to drink cocktails has tapped into today's health consciousness, particularly among millennials. Even though many are brewed with fermented sugars, most gluten-free Ready to drink cocktailss have around 100 calories and only two grams of carbohydrates. In comparison, an ordinary beer contains roughly 150 calories and 15-30 grams of carbs. Gluten-free Ready to drink cocktailss are also available in the market. More importantly, although Ready to drink cocktailss like White Claw are made with fermented sugars, the total added sugars are only 2 grams. Mike's Hard Lemonade, for example, has 32 grams of sugar per bottle.
Ready to drink cocktailss, unlike earlier alcoholic drinks that aimed to appeal to both men and women equally, have succeeded in shattering the glass ceiling. Beer has been marketed as a "manly man's" drink for decades, while wine and wine derivatives have been marketed as "mother juice." Wine spritzers, on the other hand, were portrayed as a stress reliever for women who were self-conscious about their appearance, inspiring brands like Skinnygirl and Little Black Dress.
Restraint
When consumers consume a food or drink that they believe is "healthier," they frequently drink to excess. While socializing with a drink or two is acceptable, excessive consumption causes many people to binge drink. This occurs when a woman consumes four or more alcoholic beverages in a two- to three-hour period, whereas a male consumes five or more. It raises the danger of bad health consequences, accidents, and injuries, not to mention the risk of lethal alcohol poisoning. These factors can slightly affect the demand and may create an obstacle in the growth of the Ready to drink cocktails in the market
Competitive Landscape
The world’s biggest brewer, Anheuser-Busch InBev, and other brewing giants are jumping on board the bandwagon for competition. New players are also entering the segment thus increasing its market penetration and therefore demand growing exponentially. There were ten Ready to drink cocktails brands in early 2018; a year later, there were 26, and the number sustained with 65 brands in 2020. Despite this, Mark Anthony Brands' White Claw has retained roughly half of sales, with Boston Beer Company's Truly coming in second.
Top Players Company Profiles
Anheuser-Busch InBev (Belgium)
Barefoot Cellars (US)
Blue Marble (UK)
White Claw (US)
Boathouse Beverage Co. (US)
Future Proof Brands LLC (US)
Cutwater Spirits (US)
Ficks & Co. (US)
High Noon Spirits Company (US)
Lift Bridge Brewing Co. (US)
Recent Developments
In April 2021, White Claw, from Mark Anthony Brands, launched its first global marketing campaign in collaboration with a diverse group of creators from across the United States and around the world to capture unscripted, momentary content inspired by the feeling White Claw evokes.
In May 2020, In the United Kingdom, Kopparberg Brewery launched a Ready to drink cocktails with a 5 % ABV that claims to be vegan-friendly and gluten-free. It comes in three flavors: mixed berries, black cherry, and guava.
In November 2020, AB InBev launched Mike's hard sparkling water in the UK. There is a growing demand for healthy drinks in this region and it is expected to rise in the upcoming years
Key Market Trends
The increasing popularity of flavored alcoholic beverages among Millennials is boosting the growth of the market. The high demand for Ready to drink cocktailss is due to their easy availability in hypermarkets, supermarkets, convenience stores, and wine shops and they are also affordable. Online channels are also rapidly offering alcoholic drinks including Ready to drink cocktailss to increase their revenue. For instance, In May 2020, Taffer’s Mixologist partnered with an e-commerce platform, Thirstie, which provides DTC sales for alcohol brands, in order to allow the customers to buy Ready to drink cocktails through online platforms.
A major reason behind the increasing adoption of Ready to drink cocktails is the reduced content of calories and carbohydrates in comparison to beers and other drinks. Market penetration is also given a boost mainly due to marketing campaigns. The product packaging and design are vital as these are inspired by the sparkling water that forms the product’s core and reflects the refreshing lightness of seltzers. The bold colorfulness represents the full fruit flavor of the product, hence attracting customers. This market thrives on user experience and research to produce new tastes and consumer behavior.
SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research has identified that Alcohol, Sparkling water are two of the major raw material in primary end-user industries for Ready to drink cocktails market throughout the forecast period in the Food & Beverages industries.