Ready-to-Drink Alcoholic Beverages Market Assessment, By Product [Premixed Cocktails, Hard Seltzer, Alcopops, Others], By Base Type [Malt-based, Wine-based, Spirit-based], By Alcohol by Volume [Below 5%, 5% to 10%, Above 10%], By Packaging [Bottles, Cans,

Ready-to-Drink Alcoholic Beverages Market Assessment, By Product [Premixed Cocktails, Hard Seltzer, Alcopops, Others], By Base Type [Malt-based, Wine-based, Spirit-based], By Alcohol by Volume [Below 5%, 5% to 10%, Above 10%], By Packaging [Bottles, Cans, Kegs], By End-user [Commercial, Residential], By Distribution Channel [Online, Offline], By Region, Opportunities and Forecast, 2017-2031F

Global ready-to-drink alcoholic beverages market is projected to witness a CAGR of 9.12% during the forecast period 2024-2031, growing from USD 35.32 billion in 2023 to USD 71 billion in 2031. The ready-to-drink alcoholic beverages market is witnessing growth due to significant factors such as growing popularity of social events and get-togethers, rising cocktail-at-home culture, and consumers’ preference for convenient, affordable, and accessible ways to consume various alcoholic beverages.

They provide convenience in portability and ease of consumption since they don’t need to be mixed or prepared in advance and can be consumed immediately. Thus, they are a perfect option for on-the-go consumption, enabling consumers to enjoy their premixed premium alcoholic beverages with little or no effort.

Other drivers of the ready-to-drink alcoholic beverage market, which support its growth arestandardization in the flavor of each product while maintaining premiumization with every serving, providing the consumers with a familiar taste which helps them in resonating with the product and develop liking for it, consumers’ preferences for time-saving options and availability of wider range of products from classic alcoholic beverages, such as martini and negroni, to innovative alcoholic beverages such as fruit beer.

Additionally, ready-to-drink alcoholic beverages are widely used in the hospitality industry, and it creates a new revenue stream for restaurants, numerous cafes, and other outlets as the demand for convenient alcoholic beverages is rising among consumers. Moreover, innovations such as alcoholic coffees and teas by the key players and various other players in the market are fostering market growth as unconventional combinations are preferred by consumers in their alcoholic beverages. For instance, in August 2023, Dunkin’, a brand of Inspire Brands LLC, launched its latest ready-to-drink alcoholic beverage, Dunkin’ Spiked Iced Coffees and Iced Teas. Dunkin’ spiked Iced Coffee has an alcohol by volume of 6% whereas, Dunkin’ Spiked Iced Tea has an alcohol by volume of 5%.

Due to its wider market reach, easy availability of the products to the consumers, greater brand visibility due to the exposure to offline retail outlets and e-commerce websites, and rise in sampling and tasting events by various retail outlets for consumers, allowing them to try on the latest launches in the market and helping the key players to gain consumers’ feedback, creating opportunity for them to test and improve their products before the actual launch is expected to help the retail distribution grow, in turn, driving the growth of global ready-to-drink market.

Convenience and Affordability of Alcoholic Beverages to Support the Market Growth

Ready-to-drink alcoholic beverages have gained popularity due to their affordability, convenience in consumption, and portability.

Ready-to-drink alcoholic beverages eliminate the need for complex mixing or preparation processes, catering to individuals with busy lifestyles, providing them convenience. The simplicity appeals to a wide range of consumers, including those looking for quick and hassle-free options for social gatherings or on-the-go enjoyment. Moreover, they offer exceptional portability as they are packed in cans or bottles, and they are easily transportable to various settings, from picnics and outdoor events to beach parties and festivals. Furthermore, the packaging ensures freshness and prevents spillage, making the drinks ideal for travel or outdoor activities where glassware is impractical or prohibited.

Moreover, they are affordable as they are marketed in single portion sizes and are produced in bulk which reduces their cost of production, making them affordable for the consumers.

For instance, in March 2023, Jack Daniel’s announced the launch of ready-to-drink canned cocktails in the United States. The ready-to-drink cocktail, as an outcome of the collaboration, has been made available nationwide in 4-packs of 12 oz. cans at the retail price of USD 12.99.

Malt-based Ready-to-Drink Alcoholic Beverages to Drive Market Growth

Malt-based ready-to-drink alcoholic beverages are driving market growth over other ready-to-drink alcoholic beverages, such as wine-based and spirit-based, due to several significant reasons. The malt-based ready-to-drink alcoholic beverages offer a sweeter and more approachable flavor profile, appealing to a broader segment of consumers, particularly younger drinkers and those who are new to alcohol consumption. The sweetness masks the taste of alcohol, making it more palatable for novice drinkers.

Moreover, malt-based ready-to-drink alcoholic beverages typically have a lower alcohol content as compared to spirit-based beverages, making them more suitable for casual or social drinking occasions where moderation is desired. The lower alcohol content aligns with the changing consumer preferences towards healthier lifestyle choices and responsible drinking habits.

Furthermore, malt-based RTDs are available in a variety of flavors, which cater to the evolving preferences of consumers who seek experimental and customized alcoholic beverages. For instance, in February 2024, Diageo PLC launched its latest offering, Captain Morgan Sliced, a range of canned malt-based cocktails, containing 5.8% alcohol by volume. They were launched in four varieties, namely, Strawberry Margarita, Mango Taio Tai, Pineapple Daiquiri, and Passionfruit Hurricane.

Premixed Cocktails to Dominate the Market

Premixed cocktails have gained popularity among consumers over hard seltzers or alcopops due to several reasons. They offer a wider variety of flavors which cater to the diverse consumer preferences. With options available from classic cocktails, such as Manhattan, to trendy and latest cocktails, such as Expresso Martini, the ready-to-drink cocktails offer a more extensive flavor profile as compared to the relatively limited range of flavors that are available in hard seltzers.

Moreover, premixed cocktails contain a higher alcohol content than the hard seltzer, appealing to consumers who prefer stronger drinks. They add an element of sophistication to dinners, get-togethers, and cocktail parties.

For instance, in April 2023, Grey Goose, a brand of Bacardi Martini B.V. announced the launch of a ready-to drink Grey Goose Classic Martini Cocktail. The latest offering is crafted with three premium ingredients, namely, Grey Goose Vodka, dry French vermouth, and a dash of orange bitters. It offers 8-10 servings in each 750 ml bottle.

Europe To Hold a Greater Market Share

Europe is dominating other regions in the global ready-to-drink alcoholic beverage market due to several significant reasons. Europe has a well-established drinking culture with a high demand for diverse, convenient, and premium quality alcoholic beverages. The European consumers are generally open to experimenting with new formats and flavors of alcoholic beverages, which resonates well with the wide offering of the ready-to-drink products and its convenience. It facilitates the manufacturers to perceive Europe as a potential market for the introduction of their latest and innovative ready-to-drink products.

For instance, in October 2023, The Coca-Cola Company and Pernod Ricard formed a global partnership to debut Absolut Vodka and Sprite as a ready-to-drink pre-mixed cocktail in 2024. The pre-mixed cocktail was planned to be available in versions with Sprite and Sprite Zero Sugar with the initial launch planned for select European countries in early 2024, including countries such as the United Kingdom, Spain, the Netherlands, and Germany.

Moreover, there is a strong presence of established and well-knitted distribution channels and retail infrastructure in Europe, which makes it easier for manufacturers to introduce and distribute their latest ready-to-drink alcoholic beverages across the continent, making it a preferred choice.

Future Market Scenario (2024 – 2031F)

Global ready-to-drink alcoholic beverage market is anticipated to witness growth in the forecast period due to various reasons.

The surging popularity and demand for premium and high-quality ready-to-drink alcoholic beverages is expected to contribute to market growth in the forecast period.

Introduction of latest unconventional and creative flavors along with innovative marketing strategies by the key players is facilitating the market growth.

Introduction of new packaging options which increases the portability and provides greater convenience to the consumers will significantly foster the growth of ready-to-drink alcoholic beverage market as it appeals to the consumers and allows them to experience a hassle-free drinking experience.

Key Players Landscape and Outlook

Key players in the market are helping in the growth by focusing on continuous product innovation, retail expansions, and strategic marketing. The manufacturers are actively expanding their product portfolio, increasing the base of the customers, and catering to their evolving needs.

A significant trend has been observed where the key players are introducing premium ready-to-drink alcoholic beverages, to appeal to the consumers who seek high-quality products. For instance, in February 2024, Pernod Ricard Group’s Absolut entered the ready-to-drink alcoholic beverages category by launching its latest Absolut Cocktails line with the flavors Raspberry Lemonade and Vodka Mojito. Being a pioneer in premium imported vodka, Absolut’s latest offering delivers bar-quality cocktails that are refreshingly tasty and indulges the consumers in their high-quality taste and texture.