RTD/High Strength Premixes Market

RTD/High Strength Premixes Market Outlook (2023-2033)

The market for RTD/high strength premixes can be expected to expand at a value based CAGR of 4.4% and show an increase in revenue from US$ 5,039.4 Mn to around US$ 7,751.5 Mn by 2033.

RTD/High Strength Premixes Consumption Analysis (2018-2022) Vs. Market Estimations (2023-2033)

The global RTD/high strength premixes market has witnessed significant growth in the historical period registering a CAGR of 3.8% in the historical period and was valued at US$ 5,039.4 Mn in 2023.

Capitalizing on consumer trends such as the growing popularity of ready-to-drink (RTD) cocktails or the increasing uptake for high strength premixes has enabled beverage producers to reap high profits. The demand for RTD/high strength premixes continues to gain traction with the proactive consumption of easy-to-make alcoholic beverages registered across the globe.

Even in their down time, consumers are seeking convenience, which has compelled several companies to fuel their presence in the RTD/high strength premix business. Moreover, organisations handling the drinking needs of large hordes of consumers (during social events) have been actively been using RTD/high strength premixes to cater to the increasing number of partygoers.

The global market for RTD/high strength premixes is estimated to reach an approximate valuation of US$ 7,751.5 Mn in the forecast period.

What are the Key Trends in the Market for RTD/High Strength Premixes?

“Consumer Preference for Convenience to Drive Sales of Ready-to-Drink Premixes”

Owing to the changes in drinking habits of consumers across the globe, popularity of alcoholic drinks that require longer for preparation is declining. Increasing trend of consumption of alcoholic beverages in social gathering across the globe is creating market opportunities for easy-to-make and ready-to-drink premixes in the upcoming years.

Such ready-to-drink or high strength premixes have various advantage such as convenience of preparation, consistency in taste, and a variety of flavors, which is playing an important role is driving their demand globally. RTD premixes have managed to attract a huge consumer base due to their high convenience in preparation. Factors as such are driving the global sales of High strength premixes.

“Lifestyle and Demographic Changes to Induce Drinking Habits and Provide Impetus to Market Growth”

The food and beverage industry has benefited from urbanisation and modernization in emerging economies. Consumer eating and drinking habits are changing noticeably. Consumers' changing lifestyles, particularly those of the millennial generation, are inducing drinking habits to a greater extent. Improvements in various countries' economic conditions have resulted in increased disposable income and a higher standard of living, which has contributed to the rising trend of premiumization and consumption of alcoholic beverages and beverages. Companies in the global High strength premixes market are expected to find greater opportunities in ready-to-drink alcohol beverage categories as the number of women who consume alcohol grows.

“Popularity of Spirit-Based Ready-to-Drink Premixes to Gain Traction”

Burgeoning demand for premium spirits and spirit-based products is encouraging manufacturers to invest in ramping up production capacity for such segments. Extensive use of spirit-based RTDs and high spirit premixes in a variety of popular drinks and cocktails, is expected to drive the global sales of spirit-based ready-to-drink premixes in the upcoming years. In order to meet the increasing consumer demand and gain a competitive edge, manufacturers are developing innovative flavors of spirit-based alcohol mixes. Owing to the increasing popularity of spirit-based drinks, leading players are manufacturing spirit-based premixes along with implementation of appropriate and effective marketing strategies, in order to attract more consumers.

“Expensive Packaging Leading to Higher Initial Investments”

Packaging is one of the crucial aspect of the High strength premix beverages, as it helps in better marketing of the product as well as in maintaining the quality of the premixes. For the established brands and manufacturers in the market, packaging has been to be an important aspect as it defines their identity. For startups, attractive packaging of the ready-to-drink premixes acts as a tool for marketing and brand-establishment. Packaging is also important for addressing fundamental issues such as maintaining product shelf-life for long periods, hence manufacturers must employ sustainable packaging solutions. Maintaining efficiency and aesthetics of packaging solutions can prove to be an expensive affair, especially for new entrants. High initial investments and strategic tie-ups with packaging companies often creates a financial pressure on players.

Country-wise insights

What is the expected growth regarding the North American RTD/high strength premixes market?

According to the National Survey on Drug Use and Health conducted in the U.S., around 86.4% of American adults i.e., around 46.3 million individuals aged twelve or older consumed alcohol at least once by the year 2021. The tendency of most Americans to drink alcohol will continue to support the growth of the North America RTD/high strength premixes market during the forecast period. however, increasing incidence of diseases caused by excessive alcohol consumption and rising morbidity due to alcoholism is prompting authorities to take necessary actions to curb alcohol consumption, production, and distribution in the region. increasing awareness regarding health risks of consuming alcohol is likely to impact the sales of RTD/high strength premixes in the region during the assessment period.

Which regions lead in the consumption of RTD/High Strength Premixes Market?

Regional analysis provided in the report reveals that Japan is the largest consumer of RTD/high strength premixes in the world. The RTD/high strength premixes market in Japan reached an estimated 1800 Mn litres in 2022 and is poised to expand robustly over the forecast period. North America and Europe are also expected to be at the forefront of global expansion of the RTD/high strength premixes market in the upcoming years.

Category-wise insights

Which Sales Channel is likely to have a major impact on the RTD/High Strength Premixes Market?

Global sales of RTD/high strength premixes will majorly have been accounted by the speciality stores. The report has estimated that in 2022, more than two-fifth of revenues procured in the global RTD/high strength premixes market were amassed from speciality store sales. Duty-free stores will also register high sales of RTD/high strength premixes, while online sales of RTD/high strength premixes will reflect the highest CAGR of 8.7%.

What Type of Product Among the RTD/High Strength Premixes Market Expected to Show Most Prominent Growth in the forecast duration?

The report has analysed a variety of RTD/high strength premixes, among which spirit-based RTDs are expected to witness the highest traction in terms of global demand. In 2022, over 2000 Mn litres of spirit-based RTDs are estimated to have been sold in the global market. The report further reveals that high strength premixes will register fastest sales in the global market over the forecast period. By the end of 2033, over 10000 Mn litres of high strength premixes are likely to be sold in the global RTD/high strength premixes market.

Competitive Dashboard

Complexities arising in large-scale production of RTD/high strength premixes has become a key concern for the market players. Moreover, the quality of these premixes largely depends on the packaging solution used to store them. Companies in the global RTD/high strength premixes market are compelled to create strategic tie-ups with packaging partners, which entails high capital expenditure.

• Suntory Spirits Limited, a subsidiary of Suntory Holdings Ltd., has announced to increase business in the year 2018 by targeting strong demand for drinks to pair with meal, in Japan, with the help of innovative and premium RTDs.
• Diageo plc., a British multinational company the company recently launched a new service for one of the voice controlled devices by Amazon. A voice-version of the website “The Bar” is launched on the Amazon Echo Show by Diageo, which helps consumers make their own cocktails at home, to encourage in-home alcohol consumption. While teaching consumers mixology techniques, Diageo provides the list of ingredient products for making cocktails, which consumers can buy from the mobile app of Diageo.
• In October 2016, AB InBev divested SABMiller's stake in MillerCoors, a joint venture between Molson Coors and SABMiller in the United States and Puerto Rico. In the same month, SABMiller announced the sale of its stake in China Resources Snow Breweries Limited (CR Snow) to China Resources Beer (Holdings) Company Limited. AB InBev also divested SABMiller's interest in the Peroni, Grolsch, and Meantime brand families and associated businesses in Italy, the Netherlands, the United Kingdom, and internationally in October 2016.
• In April 2016, Kirin Beverage and DyDo DRINCO started selling their products in each other’s vending machines. DyDo DRINCO’s core products, ‘DyDo Blend Coffee’ and ‘DyDo Blend Bitou Sekai Ichi No Barista Kanshu’ are sold through vending machines managed and operated by Kirin Beverage Value Vendor Company. Also, Kirin Beverage’s core products, ‘Kirin Gogo-no-Kocha Milk Tea’ and ‘Kirin Gogo-noKocha Lemon Tea’ are sold in vending machines managed and operated by DyDo DRINCO.

RTD/High Strength Premixes Industry Report Scope

RTD/High Strength Premixes Industry Research by Category

By Product Type :

• Spirit based RTD
• Wine based RTD
• Malt based RTD
• High Strength Premixes

By Sales Channel :

• Modern Trade
• Specialty Stores
• Online Retail
• Duty-Free Stores

By Region :

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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