The Future of RTD Cocktails
Ready-to-drink (RTD) alcoholic beverages are an increasingly popular product in the beverage market. These drinks, which combine alcohol, flavorings, and other ingredients, have seen a surge in sales in recent years due to their convenience and portability. But what does the future hold for RTD alcoholic beverages? Let’s take a look at current trends and projections for the next five years.
Current Market Share of RTD Alcoholic Beverages
According to a 2020 report from Grand View Research, the global RTD alcoholic beverage market was valued at $62.3 billion as of 2019 and is expected to reach $91.4 billion by 2027 at a compound annual growth rate of 5%. This growth is largely driven by increasing consumer demand for convenient ready-to-drink products. In addition, rising disposable incomes are allowing more people to purchase these products and fuel further growth in the market.
RTD Cocktail Projections for 2023 and Beyond
Global technology research company, Technavio has reported that ready-to-drink (RTD) cocktails will see 11.43% year-on-year growth in 2023. This growth is expected to be driven by rising demand for premium offerings such as specialty cocktails as well as expanding distribution channels such as online retailers. Additionally, companies are investing in new flavors and packaging options to help increase sales and boost brand awareness. By 2026, it’s expected that RTD cocktails will have a greater share than hard seltzers! This is equal to an increase in category value of an additional $11.6bn!
RTD Cocktails in Asia Pacific Region to Boom
The 2022 study by IWSR that revealed RTDs overtaking hard seltzers, focused on the top 10 markets that comprise 85% of the RTD market: the US, Mexico, Canada, the UK, Germany, Australia, China, Japan, South Africa, and Brazil While th United States continues to dominate the share of RTD beverages, Asia Pacific is expected to see the strongest growth over the next five years, expecting to register the fastest CAGR 14.9% from 2022 to 2030 due to increasing disposable incomes and expanding e-commerce markets. North America is also expected to continue steady growth over this period due to increasing demand for specialty cocktails among younger consumers.
Steady Growth Continues as does Consumer Demand for RTD Cocktails
Overall, it looks like the RTD alcoholic beverage market will continue growing steadily over the next five years with no signs of slowing down anytime soon. Increasing disposable incomes, expanding distribution channels, rising demand for premium products, and investment into new flavors will all contribute to this continued growth.
Companies looking to capitalize on this trend should focus on innovating their product offerings while also tapping into lucrative ecommerce markets in Asia Pacific and North America if they want to stay ahead of their competitors in the coming years.
If you’re thinking of expanding your current canned or bottled offerings or have an idea for a new canned cocktail, Drayhorse can help! Reach out to us at inquiries@drayhorse.co and we’ll work with you to bring your RTD cocktail to the market.