Spirit-based RTD Mixes Market Overview
Spirit-based RTD Mixes Market size is estimated to reach $4.8 billion by 2027, growing at a CAGR of 6.8% during the forecast period 2022-2027. Spirit-based RTD Mixes are also delineated as alcopops ready-to-drink beverages that contain little to no amount of alcoholic content and are suitable for on-the-hoof consumption. Chemical compounds like triammonium citrate, dioctyl sodium are taken into account during the synthesis of RTD mixes for purposes such as controlling acidity. Sodium dioctylsulfosuccinate helps in the dissolution of acid into water and is considered a wetting agent in the formation of such drinks. Ready-to-drink beverages are prepared upon a variety of liquors like rum, vodka, whiskey, gin, and many more. Alcohol ethoxylate and benzene sulfonates are some other chemical compounds present in the final products. The spirit-based RTD mixes market outlook is utterly enchanting due to the assiduous lifestyles of people in modern-day society. The proliferation in purchasing income of people due to rapid industrialization and the option of a variety of flavors are factors set to drive the growth of the Spirit-based RTD Mixes Industry for the period 2022-2027.
The report: “Spirit-based RTD Mixes Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Spirit-based RTD Mixes Market.
By Type: Dark Spirit-based RTD, Light Spirit-based RTD.
By Packaging: Cans and Bottles.
By Distribution Channels: Supermarket/Hypermarket, Convenience Stores, Retail Stores, and others.
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America) and Rest of World (the Middle East and Africa).
- Geographically, the Asia-Pacific Spirit-based RTD Mixes Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027.
- The addictive nature of RTDs and the variety of flavors are said to be preeminent drivers driving the growth of the Spirit-based RTD Mixes Market. Health hitched associated with RTDs is said to reduce the market growth.
- Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Spirit-based RTD Mixes Market report.
Spirit-based RTD Mixes Market- Distribution Channel (%) for 2021.
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Spirit-based RTD Mixes Market Segment Analysis-By Type
The Spirit-based RTD Mixes Market based on the product type can be further segmented into Dark Spirit-based RTD, and Light Spirit-based RTD. The dark spirit-based segment held the largest share in 2021. Dark spirit-based RTDs are prepared by using dark liquors such as brandy, whiskey, and others. The high demand for such mixes is owing to their taste and health benefits. They lower the risks of heart attacks and prevent conditions like dementia. Most alcoholic drinks are fabricated from barley malts due to the effectiveness and enzyme-rich nature of these cereal grains. Barleys lowering down cholesterol levels, improve digestion, and perish kidney stones. Moreover, the dark spirit-based drinks segment is estimated to be the fastest-growing segment with a CAGR of 7.6% over the forecast period 2022-2027. This growth is owing to factors such as augmenting obesity problems among teenagers. Therefore, youngsters are preferring dark spirit mixes as these are helpful in weight loss practices.
Spirit-based RTD Mixes Market Segment Analysis-By Distribution Channel:
The Spirit-based RTD Mixes Market based on distribution channels can be further segmented into Supermarket/Hypermarket, Convenience Stores, Retail Stores, Online Stores, and others. The supermarket/Hypermarket segment held the largest share in 2021. The growth is owing to the far-reaching presence in urban areas, and rapid migration of people from the countryside to cities for better lifestyles. According to a report around 42000 to 45000 supermarkets and grocery, outlets are present in the U.S. in 2021. The number has witnessed a slight increase of 0.6% as compared to the year 2020. Moreover, the growing retail industry in developing countries like China and India is another big reason behind the growth in this segment. The supermarket segment is estimated to be the fastest-growing segment with a CAGR of 7.4% over the forecast period 2022-2027. This growth is owing to the vicious settlement of people in cities and growing connectivity to pastoral areas. According to a survey, more than 50% of the population lives in urban areas, and around 2/3rd of the population of the world is anticipated to migrate toward cities by 2050.
Spirit-based RTD Mixes Market Segment Analysis-By Geography
The Spirit-based RTD Mixes Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Asa-Pacific held the largest share with 33% of the overall market in 2021. The growth in this segment is owing to the factors such as the colossal population of youngsters in Asian nations and the young population is the biggest consumer of ready-to-drink mixes. Adults aged between 18-32 years are the main targeted audience for drink companies. Asia has over 15% of young population. Even though the African continent holds the highest young population but due to a lack of infrastructure, and underdeveloped economies there are not many growth opportunities. Therefore, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period 2022-2027. This growth is owing to escalating per capita income of people, Innumerable cash flows by private players to take advantage of untapped resources.
Spirit-based RTD Mixes Market Drivers
Widescale migration of people toward urban areas is Anticipated to Boost Product Demand.
In their hunt for better lifestyles and more employment opportunities, people are flying toward cities. As already mentioned in the distribution channel segment that around 50% of the population of the world is residing in urban areas and 2/3rd of the population is projected to migrate toward cities by 2050. Moreover, developing countries like India are witnessing a major surge in urban population with more than 32-33% of the total population living in cities as of 2021. Though the number has declined a little due to COVID-19 but expected to grow with the end of this pandemic. This rapid migration can be a crucial factor in the growth of the above-mentioned market as cities have a full-fledged infrastructure of modern retail outlets where they can make a purchase.
Augmenting purchasing power, and industrious lifestyles of people are Expected to Boost Product Demand.
The purchasing power of people is on the rise as the economies of many nations are performing well. Europe is one of the most developed continents on planet earth as the majority of countries hold more than $60,000 GDP per capita. Therefore, people feel quite comfortable while making such a purchase and it doesn’t put an extra burden on their pockets. But if talk about the developing world the economies of nations like India, China, and Indonesia are growing so quickly that they have started outperforming many developed nations. China overtakes the US and becomes the biggest economy in purchasing power parity with $24.2 trillion. Moreover, India is eying a $5 trillion economy by the year 2025. Therefore, with prospering economies purchasing power of people is shooting up which is driving the growth in the respective market.
Spirit-based RTD Mixes Market Challenges
Growing inflation, Health hitches accompanied by overuse of such drinks are Anticipated to Hamper Market Growth.
The addictive nature of ready-to-drink mixes can set several health complications in motion which can turn many people disinterested and strangle the growth of the spirit-based RTS mixes market. Even though RTD mixes extend several benefits to the body but their overuse can be deadly. Liver damage, dental disorders, diabetes, and infertility are a few hitches associated with them. Moreover, inflation is hitting hard across the globe after COVID-19. Therefore, people are apathetic to make unnecessary buying. Additionally, around 8 billion aluminum cans end in landfills, however, around 20-30% of cans are only recycled each year. The said factors would impede the market growth.
Spirit-based RTD Mixes Industry Outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Spirit-based RTD Mixes Market. Spirit-based RTD mixes market companies are-
- Bacardi & Company
- Beam Suntory
- Halewood International
- Gruppo Campari
- Pernod Richard
- La Martiniquais
- Beverage brands
- Asahi Brewery
- On January 7, 2022, Fresca has been kept in line to launch a line of canned cocktails. Fresca Mixes would be inspired by the mixed drinks Fresca fans have been loving. The line would have a new, distinctive line of spirit-based ready-to-drink cocktails. As mentioned above, the canned cocktails would be inspired by recipes created by Fresca fans. The company said that known brands seemed to have a leg up in the RTD market, and Fresca specifically is the fastest-growing soft drink brand in Coca-Cola's portfolio, thanks in part to "its credentials as a popular mixer."
- On May 13, 2021, US-based alcoholic beverages manufacturing company “Beam Suntory” and the United Kingdom-based Company “Edrington” settled an equity exchange deal. There are two companies one is situated in Spain and the second is situated in the UK where both Beam and Edrington have joint ownership with a 50% stake each. Following this transaction “Beam Suntory” will get full proprietorship of Spain based company whereas, “Edrington” will get full control of the UK based company.
- On April 14, 2021, Diageo an England-based alcohol beverage manufacturing company acquired “Loyal 9 Cocktails”, a US-based company ready-to-drink spirits manufacturer. This transaction is projected to be a complete success as demand for ready-to-drink cocktails is soaring in the US. In 2020 ready-to-drink cocktails sales observed a 79% upsurge and reached $664 million.
Report Code: FBR 0244
Report Code: CPR 0008
Report Code: FBR 28605
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