The North America RTD alcoholic beverages market is accounted to US$ 5,883.8 Mn in 2018 and is expected to grow at a CAGR of 5.4% during the forecast period 2019 – 2027, to account to US$ 9,402.3 Mn by 2027.
Ready-to-Drink (RTD) alcoholic beverages are the premixed alcoholic solutions which are made available in a prepared form and can readily be consumed. These beverages are versatile and are considered as sophisticated cocktails. These RTD drinks have comparatively lower alcoholic content as compared to other alcoholic drinks which is why these are gaining acceptance by a more extensive consumer base across the region. These beverages act as high strength premixes containing alcohol mixed along with fruit juice or any other soft drinks. The alcoholic RTD beverages can compose of spirit, wine, or malt, which enhances its taste and flavors. Ready-to-drink (RTDs) category has witnessed several significant shifts closely along with the dynamic change in the consumer drinking patterns. Consumer’s bending towards RTD cocktails is driving the growth of the North America RTD alcoholic beverages market.
The North America RTD alcoholic beverages market is bifurcated based on distribution channel into supermarkets and hypermarkets, liquor specialist store, duty-free stores, online retailing, and others. The hypermarkets & supermarkets segment accounted for the largest share in the North America RTD alcoholic beverages market. The sales of RTD alcoholic beverages in North America region is rising high in the hypermarkets & supermarkets. In the case of sales through hypermarkets & supermarkets, the manufacturer sells the RTD alcoholic beverage to a distributor who then provides these products to the hypermarkets & supermarkets depending upon its demand. This proves to be beneficial as the product would get a good sales image in the hypermarkets & supermarkets. The presentation of RTD alcoholic beverages in the hypermarkets & supermarkets further helps to gain a good image in this indirect sales market.
Growing preference for RTD alcoholic beverages amongst millennial is driving the growth of the North America RTD alcoholic beverages market. RTD alcoholic beverages are gaining popularity over the past few years and are mostly consumed as cocktails and long drinks. The growing preference for RTD cocktails by millennial in developed countries like the US and Canada and the easy availability of these products in the market is driving the growth of the RTD alcoholic beverages market in North America. Moreover, the alcohol content in RTD alcoholic beverages is low as compared to other alcoholic drinks. Thus, RTD alcoholic drinks are gaining acceptance by a more extensive millennial consumer base, which, in turn, is catalyzing market growth. The young population is shifting their alcohol consumption habits from beer, wine, and spirits to RTD alcoholic beverages which is propelling the growth of the North America RTD alcoholic beverages market.
North America RTD alcoholic beverages market is dominated by the US, followed by Canada. The United States is another major country dominating the RTD alcoholic beverage market in North America, followed by Canada. The consumption of alcohol beverages and premixed is subjected to various regulations formed by the government. The production and consumption of alcohol are increasing in the United States owing to increase in population. Although, consumers are becoming conscious towards health and thus, prefer healthy alcoholic beverages. Therefore the demand for RTD alcoholic beverage is on the rising as it has less amount of alcoholic content. The increase in disposable income of consumers is further expected to boost the growth of the North America RTD alcoholic beverages market.
Some of the players present in North America RTD alcoholic beverages market are Anheuser Busch Inbev NV, Asahi Group Holdings, Ltd, The Boston Beer Company, Inc, Bacardi Limited, Carlsberg Breweries A/S, Diageo plc, Halewood Wines & Spirits, Heineken N.V, Mike's Hard Lemonade Co, and Pernod Ricard.
The overall North America RTD alcoholic beverages market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the North America RTD alcoholic beverages market. Also, multiple primary interviews were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the North America RTD alcoholic beverages market.