North America Ready to Drink Beverages Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Ready to Drink Beverages Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Ready to Drink Beverages Market is projected to register a CAGR of 5.2 % during the forecast period, 2022-2027.

Over the years, RTD beverages have emerged as a convenient on-the-go snacking option for U.S. consumers leading to market growth. Ready-to-drink beverages such as energy drinks and electrolyte drinks are packed with adequate amounts of protein, carnitine, and other immune-associated nutrient blends that help to boost energy after or before a workout or any sort of physical activity. Further, the ready-to-drink category comprises a wide assortment of productsenabling consumers easy access to their favorite beverages at different price points and convenient packaging options. Thu, rising consumer inclination towards healthy and convenient dietary patterns is likely to drive the demand for RTD beverages during the forecast period.

Moreover, the increasing prevalence of lactose intolerance and dairy allergies led to the penetration of plant-based beverages such as fruit and vegetable juices and flavored cold drinks. In addition, increasing affinity towards organic and clean label products is influencing key manufacturers to come up with innovative variants in the ready-to-drink beverages category. For instance, in February 2022, Starbucks launched a new plant-based Frappuccino line with two flavors, Caramel Waffle Cookie and Dark Chocolate Brownie. Additionally, the strong consumer demand for portability and convenience has also accelerated innovations in packaging shape, the use of lighter packaging materials, and an increased application of flexible packaging.

Key Market TrendsGrowing Preference for Plant-based and Clean-label RTD Products

Healthy drinking is an obsession for the new generation of consumers, and they have shown a high preference for shelf-stable and perishable refrigerated RTD coffees, tea, and fruit juice owing to the café-like quality of these beverages, which can be cherished at home or any other place as per the end-user's convenience. Energy drink shows a significant share in the RTD beverage market as the maximum number of people who indulge themselves in fitness activities and gym workouts prefer protein-based RTD beverages owing to their adequate nutritional content. In addition, plant-based alternatives are gaining significant traction owing to the shifting consumer preference vegan diet, which is primarily due to the growing prevalence of lactose intolerance and various types of dairy allergies among the millennial population. Further, key brands are focusing on the development of a variety of ready-to-drink beverages in different flavors to cater to rising consumer interest in flavorful beverages. For instance, in February 2022, Pepsico declared the launch of the latest ready-to-drink beverage which is nitrogen-infused coal namely, Nitro Pepsi in the United States market.

United States Holds Largest Market Share

High consumer acceptance for ready to drink beverages owing to the health benefits associated with the consumption of organic and vegan ready-to-drink beverages is identified as the key market driver in the United States market. In addition, the market growth can be attributed to the high consumption of sports drinks and energy drinks owing to the widespread participation in leisure sports, physical activities, and intense gym workouts. The trend is anticipated to continue during forecast years as well due to the rising government initiative to accelerate the active participation of school and college students in various sports activities. Further, consumers are increasingly preferring RTD tea, yogurt drink, coffee, and fruit juice for regular consumption due to their hectic schedules thus, driving the growth of the RTD beverage market in the country. Additionally, in response to the rising popularity of plant-based diets, key brands are launching vegan options of RTD coffee to target the emerging segment of vegan consumers. For instance, in July 2022, Verve Coffee announced its new product named, oat milk latte under the ready-to-drink coffee product line.

Competitive Landscape

The North American ready-to-drink beverages market is highly fragmented owing to the presence of multiple regional and international brands offering a wide range of ready-to-drink tea, coffee, and energy drinks, among others. The major players identified in the market are Nestle S.A., PepsiCo, Danone SA, The Coca-Cola Company, and Inspire Brands Inc., among others. These players are focusing on various marketing strategies including, new product development, expansion of online and offline distribution, and partnering with well-known brands to strengthen their market position. Further, several regional brands are offering plant-based ready-to-drink beverages of different flavors to cater to evolving taste preferences. For instance, in March 2022, MusclePharm declared the launch of a ready-to-drink whey protein drink beverage product portfolio in the United States market.

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