RTD Spirit Market Size, Share, Growth, and Industry Analysis, By Type (Vodka, Tequila, Whiskey, Rum, Gin and Others), By Application (On-line, Off-line and Others) Regional Forecast to 2027

Updated On: 08 April 2024

RTD spirit market REPORT OVERVIEW

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The global RTD spirit market size was expected to be USD 3096.44 million in 2021 and is projected to touch USD 4183.53 million by 2027, at CAGR of 5.14% during the forecast period.The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.  The sudden rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The RTD spirit embodies the collective energy and passion of the Rocky Top community. It is what motivates us to be the best we can be and to support one another. The ready to drink spirit is vital because it fosters a sense of belonging and shared purpose in our community. The increased demand from on-trade and off-trade applications can be ascribed to market expansion. Furthermore, rising consumer disposable income and the growing popularity of cocktails are fuelling the expansion of this market.

COVID-19 Impact: Growth of E-commerce and Surge in Demand for Convenience Uplifted the Market Demand

With lockdowns and limitations on bars and restaurants, there was a noticeable shift in consumption from on-premises (bars and restaurants) to off-premises (retail and e-commerce) channels. RTD spirits benefited from this shift because they are easily accessible for at-home drinking. During the pandemic, the convenience feature became even more tempting as customers sought easy and quick solutions for drinking drinks at home without the need for bartending expertise or additional ingredients. During the pandemic, there was a large increase in online sales of alcoholic beverages, notably ready to drink spirits. Many consumers purchased their favourite beverages from online shops and delivery services, leading to the growth of the RTD market's e-commerce segment.

LATEST TRENDS

"The Flavour Innovation and Health Consciousness to Advance Up the Market Share"

In the RTD spirit market, brands have offered a wide range of flavours and novel combinations. This invention caters to consumers looking for new flavour experiences.  As customers became more health-conscious, there was an increase in demand for ready to drink spirits with lower calorie and sugar content. To appeal to health-conscious consumers, many manufacturers began to offer low-alcohol or low-calorie choices. To cater to health-conscious consumers, several RTDs  now offer low-calorie, low-sugar, and lower-alcohol versions. These possibilities have widened the appeal of RTDs beyond conventional cocktail lovers. Some ready to drink spirit firms have made attempts to address environmental concerns by employing recyclable or sustainable packaging materials, which may appeal to eco-conscious consumers.

RTD spirit market SEGMENTATION

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• By Type

Based on type; the market is divided into vodka, tequila, whiskey, rum, gin and others.

• By Application

Based on the application; the market is divided into online, offline and others.

DRIVING FACTORS

"Time Saving, Convenience and Portability to Uplift the Market Demand"

The RTD spirit market is mostly driven by convenience. RTD cocktails provide consumers with a convenient method to enjoy their favourite beverages without the requirement for mixing or bartending skills. This ease of use is especially tempting for on-the-go or outdoor activities. When opposed to creating drinks from scratch, RTD spirits save consumers time. This time-saving feature corresponds to the fast-paced lifestyles of many people who desire quick and easy solutions. RTD drinks are frequently packaged in cans or bottles, making them portable and appropriate for a variety of venues such as picnics, parties, and outdoor events. Their appeal has been boosted by their portability. The ready to drink spirits are well-known for their taste and excellent consistency. Customers can expect a consistent flavour profile with each purchase, removing the unpredictability that can arise when creating drinks at home.

"Rising E-Commerce Sales, Premiumization and Effective Marketing to Drive the Market Growth"

With a wider selection of international flavours and brands entering the market, the RTD spirit market was becoming more global. This enabled customers to sample a wide range of flavours from various areas.With the growth of e-commerce and direct-to-consumer (DTC) sales channels, consumers could now buy RTD spirits online, significantly expanding market reach and convenience. Some ready to drink brands have positioned themselves as luxury goods, employing premium ingredients and packaging. This premiumization has attracted customers who are prepared to pay a higher price for a higher-quality cocktail experience. Some firms were cooperating with celebrities to make signature RTD cocktails, hoping to capitalise on their celebrity and influence. The RTD firms' effective marketing and branding initiatives have played a vital influence in attracting consumers. RTD products may stand out on retail shelves with creative packaging and brand narrative.

RESTRAINING FACTORS

"High Cost, Regulatory Challenges and the Heath Concerns to Restrain the Market Growth"

When compared to creating cocktails from scratch at home, RTD spirits are frequently more expensive per serve. This expense might pile up over time, making them less cheap for everyday use. Many countries have strong rules regarding the manufacturing and marketing of alcoholic beverages. Complying with these rules can be difficult, and firms must traverse legal stumbling blocks in order to bring RTD to market. Some RTD cocktails have a high sugar and calorie content, which may conflict with some users' dietary habits or health goals. Therefore the cost factor, regulations and the health concerns to hinder the RTD spirit market growth.

RTD spirit market REGIONAL INSIGHTS

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"Asia Pacific Region to Lead with Consumer Disposable Income and Changing Drinking Habits"

Asia Pacific dominated the global RTD spirit market share. The Asia-Pacific area, which includes Japan and South Korea, has seen an increase in RTD spirit consumption. The popularity of highball-style canned cocktails, in particular, has been a big trend in Japan. The region's expanding middle class and shifting drinking habits have aided the market's growth. The growth of this market can be attributed to the increasing demand for alcoholic beverages in emerging economies such as China and India. The increasing disposable income in these countries has led to an increase in alcohol consumption, which is driving the growth of this market.

KEY INDUSTRY PLAYERS

"Key Industry Players to Indulge in the Market Expansion"

The market's expansion was significantly impacted by the techniques employed by market participants in recent years, such as extensions. The report covers details and information about the firms and their interactions with the market.

List of Market Players Profiled

• Phusion Projects LLC. (U.S.)
• Suntory Holdings Limited (Japan)
• Kirin Holdings Co Ltd. (Japan)
• Brown-Forman Corp (U.S.)
• Pernod Ricard SA (France)
• Asahi Breweries, Ltd. (Japan)
• Oenon Holdings Inc. (Japan)
• Diageo Plc. (U.K.)
• Bacardi Limited (U.S.)
• Mark Anthony Brands Ltd. (Canada)
• Takara Holdings Inc. (Japan)
• Halewood International Limited (U.K.)
• Castel Groupe (France)
• Shanghai Bacchus Liquor Co Ltd (China).

REPORT COVERAGE

This report covers a comprehensive backdrop analysis, an assessment of the parent market, intensive study in the market dynamics. Past historical, current, and projected size of the market from the point of both value and volume. Researching of recent industry developments,  deep study on market share and strategies of major players and the emerging niche segments and regional market areas are covered in the report.