In the latest report by FMI, the Ready-To-Drink Beverage Market has been estimated to register sales of USD 206.25 billion by the year-end 2024. Ready-to-drink beverages (RTDs) are single-use beverages that are being made available in varied categories, like canned wines, iced coffees, and kefir yogurt drinks to entice metropolitan consumers leading busy lifestyles.
Other key factors that induce market growth at 7.6% CAGR are health and wellness trends, and increasing demand for functionality and clean label. It is assessed by FMI analysts that the market is going to exceed USD 430.30 billion by 2034.
Such promising growth is expected to attract beverage brands to hop onto the RTD bandwagon with the latest and trend-setting beverage innovations.
| Attributes | Key Insights |
|---|---|
| Ready-to-drink Beverage Market Size (2024E) | USD 206.25 billion |
| Market Valuation (2034F) | USD 430.30 billion |
| Value-based CAGR (2024 to 2034) | 7.6% |
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These market dynamics are influencing ready-to-drink beverage sales in the developed countries of North America and Europe. An extended and detailed trend analysis for the top five countries is given ahead.
| Leading Product Type | Coffee |
|---|---|
| Value Share (2024) | 21.50% |
Coffee is an extensively consumed RTD beverage and enjoys more popularity than even tea. College students, generally, make coffee a part of their routine. The rising consumption of coffee bodes well with the expanding ready-to-drink beverages market.
| Leading Nature | Conventional |
|---|---|
| Value Share (2024) | 86.50% |
Conventional ready-to-drink beverages are estimated to round off 80.50% of the global market, gaining a larger share. Despite growing consumer interest in organic variants of these beverages, the conventional segment is predicted to maintain its prominence in the global market due to its cost-effectiveness and accessibility.
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| Country | Forecast CAGR (2024 to 2034) |
|---|---|
| The United States | 4.30% |
| Germany | 3.20% |
| China | 7.30% |
| Japan | 8.10% |
| India | 7.20% |
Growth of ready-to-drink beverage market in India is expected to record sales at a promising CAGR of 7.20% during the forecast period. The market is being propelled forward as leading international beverage players are adopting strategies to increase their addressable market in India. Coca-Cola, for instance, forayed into categories like coffee and alcohol to gain market hold.
However, the company is slowly expanding into the alcohol domain in India, as the structure of the alcohol distribution and manufacturing business is rather complex. Additionally, spirits are a heavily taxed and highly regulated sector in India, which might hijack the category’s growth.
Going forward, India is a bright spot for multinational and domestic players to experience accelerated speed. To enjoy greater returns in India, players are focusing on quality of growth, which means developing a market that’s growing and holds the potential to become even greater in the future.
The ready-to-drink beverage market in the United States is moving at a slower pace than its Asian counterparts, i.e., 4.3% CAGR. Despite that, players are introducing several launches and investing in the ready-to-drink beverage landscape in the United States.
Key trends influencing the United States market include increasing RTD consumption, purchasing decisions based on ingredient transparency, and desire for premium products. The alcoholic beverage industry in the country is expected to enjoy prominence despite elevated prices and reduced liquidity.
Brands are targeting the influential Gen Z audience by gaining insights into their preferences, which include earth-friendly choices and the like. Another important aspect that they are factoring in is making the purchase convenient and friction-free.
The ready-to-drink beverage market in Germany is projected to grow at an average of 3.20% over the next decade. Key players in the country are using specific messaging to target potential customers. Other marketing opportunities to up the sales of RTD beverages include organically associating RTDs with brunch moments.
RTD space in Germany is continuously expanding with many brands entering the Germany marketplace. Players are marketing and growing in the RTDs sector, with convenience, quality, and spirit-level alcohol as their focal points.
Functional, better-for-you, RTD beverages are targeted for on-the-go consumption. Players of these drinks are building a diversified distribution set-up including mass, food service, eCommerce, club, drug, vending, and gyms. Functional RTD players are gaining distribution opportunities in hospitals, universities, colleges, eateries, hotels, and more.
The market in China is predicted to expand at a CAGR of 7.30%. The growth in China is driven by surging demand for probiotic RTD beverages, which include probiotic juices and probiotic dairy drinks. Increasing health-conscious consumers in the country are promoting sales of RTD probiotic beverages as a way to potentially enhance their gut health.
The energy drinks category in the market is being redefined as consumers are now more concerned about the ingredients they are ingesting. As a result, leading players in the country are switching the formulation of energy drinks from sugar and caffeine-dependent to more natural functional ingredients.
Japan’s ready-to-drink beverage market is anticipated to register a CAGR of 8.1% over the next ten years. The market is rapidly expanding, thanks to online platforms like Shopify, which meet the demand for various RTDs for consumers who are unwilling to go out to purchase.
Japan’s popular RTD brands are now finding growth outside of Japan too. As a result, they are expanding and partnering with local distributors in the host country to pump up their revenues.
Kirin Hyoketsu, pronounced Hyo-ket-su, is Japan’s popular RTD that has crisp and clean flavor that leaves no lingering aftertaste that other RTDs usually leave behind. Increasing demand for local favorites is expected to fuel product sales.
Strong competition pervades the ready-to-drink beverage competitive landscape. Players in the market are recognizing that although using vibrant, creative packaging can draw consumer interest, it is the innovation of the beverage’s formulation that makes the sale.
As a result, they are laying more emphasis on research and development of creative beverage products with unique blends.
The functional category in the ready-to-drink beverage industry is growing in size, as consumers are placing value on RTD choices that contain probiotics, and antioxidants, are anti-inflammatory, and promote brain health.
To gain hold of health-conscious consumers, players are launching new ‘fusion’ beverages that are readily consumable and claim to contain health-related functional benefits like collagen waters and infused iced teas.
Players are also becoming aware of the robust demand for clean, functional beverages, and sensing competition from new as well as big brands who are hopping onto this trend.
The ‘snacking beverage’ concept is catching like wildfire in developed countries, due to the growing count of health-conscious, time-poor consumers, who are strained for snacks and meal preparation. Brands are thus launching nutritious and convenient solutions for consumers.
As packaging plays a big role in selling RTD beverages, players are showing their commitment to sustainability by opting for significantly-favored cans or glass bottles. Another compelling reason to opt for cans or glasses is that these packaging solutions bestow a premium look and appeal to the beverage.
Key players are creating attractive packaging designs for RTD beverages to market their products to younger consumers. With eye-catching designs published on social media handles, brands are able to influence millennial consumer behavior. Social media also enables share of these posts with friends and acquaintances, thus raising the product’s visibility and higher chance of sales.
Coverage of Recent Events in the Ready-to-drink Beverage Industry Report
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Current projections of the market indicate a valuation of USD 206.25 billion in 2024.
Looking ahead to 2034, the current forecast projects a CAGR of 7.6% for the encasement pipe industry.
FMI predicts the market to reach USD 430.30 billion by the year 2034.
Coffee is predicted to hold a significant market share during the forecast period.
Japan, China, and India are predicted to offer lucrative opportunities for investors and stakeholders.
Diageo plc, Brown-Forman, and Bacardi Limited are powerful players in the ready-to-drink beverage industry.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type 5.1. Tea 5.2. Coffee 5.3. Energy Drinks 5.4. Yogurt Drinks 5.5. Dairy Based Beverages 5.6. Non-Dairy Based Beverages 5.7. Fortified Water 5.8. Others 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Nature 6.1. Organic 6.2. Conventional 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Packaging 7.1. Bottle 7.2. Tetra Pack 7.3. Sachet 7.4. Tin Can 7.5. Others 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel 8.1. Supermarkets/Hypermarkets 8.2. Convenience Stores 8.3. Grocery Stores 8.4. Specialty Stores 8.5. Online Retail 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. South Asia and Pacific 9.6. East Asia 9.7. Middle East and Africa 10. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 16. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Diageo plc 19.2. Brown-Forman 19.3. Bacardi Limited 19.4. Asahi Group Holdings, Ltd. 19.5. Pernod Ricard 19.6. Halewood Wines & Spirits 19.7. SHANGHAI BACCHUS LIQUOR CO., LTD. 19.8. Suntory Holdings Limited 19.9. Manchester Drinks Company Ltd. 19.10. Anheuser-Busch InBev 20. Assumptions & Acronyms Used 21. Research Methodology
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