Ready To Drink Premixes Market Analysis Report By Type, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global ready-to-drink (RTD)/high strength premixes market size was accounted for USD 18.34 billion in 2018. It is predicted that the market would register a 4.5% CAGR from 2019 to 2025. The rise in popularity of RTD beverages and high-strength premixes is spurring market growth. In addition, increasing demand for flavored drinks that have a low content of alcohol and changing lifestyles are attributing to the growth of the market.

In the recent past, there has been a rise in acceptance of ethnic drinks consumption in the developed region. Further, owing to the increasing demand for health-promoting and natural beverages is anticipated to drive the market growth. In addition, the investment in low spirit flavored beverages has increased by the pubs and bars, which in turn, is likely to bode well for the growth of the market.

However, various factors like cultural and religious beliefs in various countries, adverse health effects of alcohol content, and heavy taxation are estimated to restrain the growth of the market. Several countries have stringent regulations regarding the advertising of products with alcohol content. This factor, in turn, may hamper the market growth.

In addition, consumers are inclined towards readily available substitute products. For example, Red Bull and Cloud 9 are becoming popular among consumers across the world. Further, cheaper alternatives are gaining traction in emerging countries, thereby, limiting the product demand.

Type Insights

Depending on the type, the market is classified into High-Strength Premixes and RTD. It is estimated that the RTD division would register the highest growth over the forecast duration. In addition, this segment held the major share in the market in 2018. Increasing demand for alcoholic beverages owing to the low amount of alcohol is gaining popularity across the globe in pubs and bars. Further, increasing flavor demand and RTDs beverages are bolstering the market growth.

Distribution channel Insights

Depending on the distribution channel, the ready-to-drink (RTD) premixes market is categorized into online and store-based. In 2018, the store-based division held the largest share in the market. Store-based channels provide a one-stop shopping experience; hence, they are gaining popularity among consumers. Increasing bulk purchasing at these stores is projected to bode well for the growth of the market.

On the other hand, the online segment is likely to register a noticeable growth rate from 2018 to 2025. The increasing popularity of e-retailing, rise in the number of smartphone users, and the advent of various e-commerce sites are likely to drive the segment growth over the forecast period. In addition, there have been increasing preferences among millennials about online shopping.

Regional Insights

Across the globe, North America accounted for the highest share in the market in 2018. Further, the region is anticipated to continue to dominate over the forecast period. Increasing demand from Canada and the U.S. is driving regional growth. The rise in purchasing power and increasing living standards are attributing to the growth of the region.

Europe is projected to hold a significant share in the market by the end of the forecast duration. Increasing consumption of alcoholic beverages and changing lifestyles are attributing to the growth of the region. On the other hand, Asia Pacific is also witnessing increased demand for ready-to-drink beverages.

Impact of COVID-19

The market has been hit due to the outbreak COVID-19. Owing to the outbreak of COVID-19, several beverages manufacturers were forced to shut down their operations, leading to low production. In addition, disruption in the supply chain has led to the closure of various retail outlets. Moreover, the low demand for these products further affected the growth negatively.

However, with the systematic opening of the economy and lifting of lockdown, the market is recovering, although slowly. Manufacturers can focus on the introduction of the cost-effective product and consolidating the supply chain to gain competitive advantages and reduce the impact of the pandemic.

RTD/High Strength Premixes Market Share Insights

Key players involved in the market are focusing on various strategic initiatives such as business expansion, horizontal & vertical integration, merger & acquisition, and partnerships. For example, Brown-Forman in 2016 acquired BenRiach Distillery Co. Ltd to strengthen its dominance in the market.

The expenditure in research and development has also surged in the past few years. For example, Asahi Group Holdings, in 2017 invested nearly 103 million in research and development. Leading market players are Diageo Plc¸ Brown Forman Corp, Suntory Holdings, Halewood International, and Mark Anthony Brands among others.

Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global ready to drink premixes market report on the basis of type, distribution channel, and region:

• Type Outlook (Revenue, USD Billion, 2015 - 2025)
    • RTDs
    • High-Strength Premixes

• Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)
    • Stored Based
    • Online

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • The U.S.
    • Europe
        • U.K.
    • Asia Pacific
        • Japan
    • Central and South America
        • Brazil
    • Middle East and Africa
        • South Africa