The RTD cocktail shot market forecast for the upcoming ten years looks optimistic, progressing at a CAGR of 9.3%. Global sales are projected to total USD 3,856 million in 2024 and USD 9,395 million by 2034.
Convenience is one of the primary growth factors influencing the RTD cocktail shot market. Procuring drinks, mixing them, studying recipes, and other requirements for making cocktail shots become tedious for a sizable number of drinkers. With lifestyles becoming hectic at a rapid pace, a considerable number of drinkers just simply do not find themselves with enough time to make drinks themselves. Thus, drinkers are heavily turning to RTD cocktails.
Global RTD Cocktail Shot Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 3,708 million |
| Estimated Size, 2024 | USD 3,856 million |
| Projected Size, 2034 | USD 9,395 million |
| Value-based CAGR (2024 to 2034) | 9.3% |
Party culture is evident among the younger generations. Whether at office parties or other social gatherings, liquor is a must. With the Westernization of the population of several Asian countries, alcohol is becoming more of a mainstay in developing and underdeveloped nations, too.
A party brings together a diverse group of people, and thus, to cater to all tastes, variety in drinks is needed. RTD shots help in adhering to the diversity requirements in drinks conveniently. Instead of splashing money on bartenders or wasting time and money in making drinks by hand, these shots are readymade and satisfy the same cravings. Thus, party and going out culture is one of the prominent market trends in RTD cocktail shots.
Consumers desiring unique flavors and exotic tastes are empowering the growth of RTD cocktail shots. A sizable number of drinkers are bored of the same stuff in drinks, and thus cocktails are becoming more popular.
Cocktails are also rising in popularity as drinkers are partial to cocktails’ ability to get rid of the bitter taste of alcohol. As a result, the cocktail, and in turn the RTD cocktail shot sector, the industry is growing.
Even alcoholic drinks are coming under the scope of the health trend in the beverage sector. Even while getting intoxicated, a sizable chunk of drinkers prefer to keep their calorie count in check. Manufacturers in the sector are producing drinks that cater to health-conscious people. Thus, the demand for lower calorie alcohol drinks is set to drive the RTD cocktail shot market.
While going out for outdoor parties, camping, and other activities, consumers desire portable alcoholic drinks. Consumers are also interested in trying out new flavors in beverages. They are getting ideas from social media and seeking out new flavors to spice up their drinking.
The increasing disposable income among the young population is also driving the consumer base towards flavorful drinks. Thus, rising demand for on-the-go packaged drinks and flavored beverages is set to boost the demand for RTD cocktail shots.
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The below table presents the expected CAGR for the global RTD cocktail shot industry over several semi-annual periods spanning from 2024 to 2034. For the first half (H1) from 2023 to 2033, the sector is expected to grow at a CAGR of 9.1%. For the second half (H2), growth is predicted at a CAGR of 9.4%.
| Particular | Value CAGR |
|---|---|
| H1 | 9.1% (2023 to 2033) |
| H2 | 9.4% (2023 to 2033) |
| H1 | 9.7% (2024 to 2034) |
| H2 | 9.6% (2024 to 2034) |
Moving forward to the subsequent period, from H1 2024 to H2 2034, the CAGR is foreseen to be 9.7% in the first half and 9.6% in the second half. Thus, it is clear that progress in the first half will happen slightly quicker than in the second half.
Advertising to Play Key Role in Propagation of the Shots
One of the complexities faced by stakeholders is the lack of knowledge among drinkers about the product. To address this shortcoming, suppliers are turning to branding strategies.
From physical to virtual storefronts, these shots are being advertised to a greater degree. Among the things highlighted include the taste, the compact nature of the drinks, and their ability to give a buzz. Thus, to stay ahead in the landscape, manufacturers are required to devote significant resources to advertising.
Low Alcohol Drinks Gaining Popularity
One of the prime factors that endear cocktails to consumers is the reduced amount of alcohol in the drinks, as compared to regular drinks. Producers are going even further, reducing the alcohol volume in the beverage to minimal levels.
Drinkers are preferring low alcohol content drinks as a way to avoid the side effects of alcohol while still retaining the buzz. Low-alcohol drinks are also popular among the subset of drinkers who do not feel they have the capacity to handle hefty quantities of liquor.
By reducing the alcohol content of drinks, manufacturers also have more room to play in terms of flavors and taste. Thus, with consumers inclined toward trying out novel and inventive tastes and flavors, low-alcohol drinks are becoming more popular.
Increasing Regulations and Anti-alcohol Measures Restraint Growth
As with other liquor drinks, the RTD cocktail shot market is subject to stringent regulations. Navigating these restrictions is a challenge for stakeholders and sees the growth rate being pulled back.
Anti-alcohol measures are also set to serve as a significant obstacle for players. Certain regions are still under the control of strict anti-alcohol rules, and thus, the scope of cocktail shots is limited.
Principal Consultant
The RTD cocktail shot market size was tipped to be USD 2,186 million in 2019. Throughout the historical period, the industry expanded at a CAGR of 9.5%, reaching a size of USD 3,708 million in 2023.
With the pandemic shutting down bars, liquor shops, and liquor-selling places temporarily, there was a greater need for packaged and convenient drinks. Thus, the RTD cocktail shot industry benefited from drinkers having to stay at home and not having access to a variety of drinks. Online sales played a notable part in the RTD cocktail shot sector being propelled in the historical period.
The industry is set to progress even more rapidly in the forecast period as compared to the historical period. The importance of online sales is expected to carry over from the historical period into the forecast period. Using strategies like discounts and bundle offers, suppliers are making the drinks more enticing for consumers.
With domestic tourism on the up, a significant chunk of travelers prefer taking alcohol with them. RTD cocktails ease the burden on travelers as they are compact and can serve a wide variety of needs. This is particularly helpful when the traveling party is substantial in numbers. There is, thus, great scope for investors in the sector over the ensuing decade.
Certain tier 1 companies that have a notable presence in the RTD cocktail shot industry include Asahi Group Holdings Ltd., Diageo plc, and Bacardi Limited. Together tier 1 companies hold a significant percentage of the industry revenue, amounting to 72.3%.
Innovation is the name of the game for Asahi Group Holdings Ltd. By introducing novel offerings, the company aims to reach new consumers. This experimentation is evident in the launch of drinks like yogurt-flavored RTDs.
Diageo plc concentrates on keeping the production line moving. The fast launching rate of drinks by the company has earned it a loyal consumer base. The company’s premium products are renowned for their quality.
Another company that has earned the trust of consumers is Bacardi. After much success in traditional liquors, the brand has proved capable of similar success in RTDs. Another similarity between the companies is the fast rate at which they release new products.
Ter 2 companies with a notable presence in the sector include Halewood Wines & Spirits, Brown-Forman, and Shanghai Bacchus Liquor Co. Ltd. Together these companies control about 20.9% of the revenue.
United Kingdom-based Halewood Wines and Spirits is famed for its artisanal drink offerings. That same artisanal spirit is being incorporated into the RTD offerings of the company. Brown-Forman has welcomed collaboration to boost sales. The company collaborated with soft drink giant Coca-Cola to launch the Jack Daniel’s & Coca-Cola RTD. Meanwhile, Shanghai Bacchus Liquor Co. Ltd. banks on its popular Rio-branded RTD cocktails.
Tier 3 companies making a name for themselves in the sector include Suntory Holdings Limited and Manchester Drinks Company Ltd. These tier 3 companies account for nearly 6.8% of the revenue. Suntory Holdings Limited prides itself on its diverse offerings, increasing sales through multiple avenues. Its drinks range from premium offerings to low-alcohol drinks made as part of its Japanese RTD brand Horoyoi.
Unlike other companies in the sector, who have all around interest in the alcohol business, the Manchester Drinks Company Ltd. is focused primarily on ready-to-drink beverages. The company also prides itself on the innovation they bring to the sector. These innovations include packaging and flavor.
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Apart from the RTD cocktail shot sector, an in-depth analysis has been done on two other related industries. These include RTD canned cocktail and the pre-mixed/RTD alcoholic drink industries.
RTD Canned Cocktail Industry Assessment:
Growing demand for packaged food and beverages is leading the way for the growth of the RTD canned cocktail sector. Innovation with flavors, highlighted by the branding on the cans, is another significant reason for the boosting popularity of the drinks. Low-alcohol content canned cocktails are also earning their day in the sun.
| Attributes | Description |
|---|---|
| Related Market | RTD Canned Cocktail Industry |
| Value-based CAGR (2024 to 2034) | 6% |
| Industry Trend | Growing day drinking fads. |
| Restraint | Pricey nature of canned cocktails. |
| Growth Factor | Surging demand for convenient alcoholic drinks. |
Pre-mixed/RTD Alcoholic Beverage Industry Assessment:
The hassle-free nature of pre-mixed/RTD alcoholic drinks is endearing them to the busy working populace. The ability of these drinks to reduce the time and effort required on the part of consumers is a significant contributor to demand acceleration. Increased online presence of vendors is also benefiting the sector, making suppliers more visible to consumers.
| Attributes | Description |
|---|---|
| Related Market | Pre-mixed/RTD Alcoholic Beverage Industry |
| Value-based CAGR (2024 to 2034) | 4.8% |
| Industry Trend | High consumption of low-calorie, low-carb, and other healthy versions of pre-mixed/RTD alcoholic drinks. |
| Restraint | Uncertainty over taste of novel drinks. |
| Growth Factor | Party culture showing no signs of slowing down. |
The westernization of the population of Asian nations is contributing significantly to the industry’s growth in the Asia Pacific. Reputed party culture in Europe boosts the sector in the region. The presence of prominent RTD liquor brands bolsters demand in North America.
| Countries | CAGR (2024 to 2034) |
|---|---|
| China | 5.6% |
| United States | 11.3% |
| United Kingdom | 9.8% |
| Japan | 8.2% |
| India | 10.3% |
| Canada | 12.4% |
| Germany | 6.8% |
| France | 11.2% |
| Spain | 10.2% |
| Italy | 7.9% |
| Indonesia | 6.9% |
| Australia | 5.1% |
The target industry is penned in to progress at a CAGR of 11.3% in the United States. Consumers in the nation clamor for variety in drinks. Drinkers’ propensity to stay on the beat forces manufacturers to roll out new offerings at an intoxicating rate. This trend is also replicated in the RTD alcoholic beverage sector.
The RTD alcoholic beverage sector in the United States is also being impacted by celebrity involvement. Stakeholders are taking the help of celebrities and influencers to increase the awareness of their drinks.
Celebrities themselves are getting in on the action. For example, Dr Dre and Snoop Dog launched the Gin and Juice line of RTD gin-based cocktails, named after their hit single. This will likely bolster sales growth in the nation through 2034.
The Canadian RTD cocktail shot market is set to register a CAGR of 12.4%, making it a lucrative country for stakeholders. The availability of cocktail shots in Canada is shooting up. Thus, capturing the attention of Canadian consumers has become easy for suppliers.
One of the reasons the product is increasing in visibility in Canada is better distribution. Even rural and remote corners of the country are housing RTD alcohol beverages. This is borne out by such happenings as Dogfish Head expanding its distribution network in the country. Dogfish Head’s spirit-based RTD cocktails were announced to be available in Western Canada in April 2024.
Better distribution is also being facilitated by the authorities in Canada. The local bodies in the country are allowing alcohol sales to happen more freely. For example, the plan for Ontario, as envisaged by the government, is to allow sales of alcoholic drinks, including RTD cocktail shots, at all convenience stores and gas stations from 2026. Thus, the conditions are right for growth in Canada.
The United Kingdom industry is set to register a CAGR of 9.8% through 2034. Manufacturers in the United Kingdom are heeding the quench felt for swooning spirits by alcohol imbibers. They are aware that the formula for success in the country is consistent innovation and novel concepts.
One example of such innovation is Panther M*lk. Touted as the first oat milk-based RTD cocktail, it is targeted at vegan consumers. Thus, it can be seen that manufacturers are looking to make the consumer base as wide as possible.
Manufacturing companies are also looking at collaborations to increase industry scope or to outright make an entry into the sector. For example, in February 2024, it was announced that the Absolut Vodka and Sprite ready-to-drink cocktail was available across the United Kingdom. The partnership brought together a prominent spirit brand in Pernod Ricard and a notable soft drink label in the Coca-Cola Company.
The most common type of RTD cocktail shot is the spirit-based one. Supermarkets are the prime destination for consumers to get these drinks.
| Segment | Spirit-based (Product Type) |
|---|---|
| Value Share (2024) | 34.6% |
Spirit-based RTD cocktail shots are expected to take up 34.6% of the value share in 2024. The sheer variety of spirits available makes them easy ingredients for cocktail shots. The variety is increasing, thereby affording more opportunities to experiment for manufacturers.
Spirits are too bitter to taste for some, with rum and tequila being particular offenders. There is already precedent for spirits to be mixed with other drinks, such as water and soda. Cocktail shots are proving to be a solution for drinkers who want the buzz of spirits while minimizing their taste.
Wine-based RTD cocktail shots are also progressing. The production of wine-based RTD cocktails is still in its nascent stages, and there are plenty of opportunities for investors.
| Segment | Supermarkets and Hypermarkets (Distribution Channel) |
|---|---|
| Value Share (2024) | 64.5% |
Supermarkets and hypermarkets are in line to account for 64.5% of the industry share in 2024. The increasing number of super and hypermarkets allows the segment to flourish. Drinkers feel the allure of attractive packaging combined with resplendent displays of the liquor sections in supermarkets.
Supermarkets are also convenient for comparison purposes. Showing an array of products to consumers, customers can compare cost, comfort, and more.
While super and hypermarkets reign at the top of the distribution channel segment, online retail is catching up fast. The convenience of customers is increased even more through online sales. The diversity of products available is also enhanced. Suppliers introducing various discounts, offers, and other schemes also help the distribution channel to emerge further.
Though the industry landscape is top-heavy, there are still a plethora of opportunities available for industry players. However, the high concentration of giants means acquisitions and mergers are common.
Leading players are concentrating on introducing new products with innovative flavors and sustainable packaging to expand their customer base. Similarly, new facility expansions, partnerships, and distribution agreements are becoming prevalent in the industry.
Key Industrial Developments
Based on the type, the RTD cocktail shot market is divided into malt-based, wine-based, and spirit-based.
Based on the distribution channel, the industry is categorized into hypermarkets/ supermarkets, liquor stores, online channels, and bars and restaurants.
Ready-to-drink cocktail shots come in cans and bottles.
The sector has been analyzed with the following regions covered: North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa.
The size of the RTD cocktail shot market is estimated to be USD 3,856 million in 2024.
The industry is expected to increase at a CAGR of 9.3% over the forecast period.
The RTD cocktail shot sector is forecast to total USD 9,395 million by 2034.
Halewood Wines & Spirits and Asahi Group Holdings Ltd.
Sales in the United States are expected to surge at a CAGR of 11.3% through 2034.
Canada is forecast to register a CAGR of 12.4% through 2034.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Type 6.2. Packaging 6.3. Distribution Channel 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type 7.1. Malt-Based 7.2. Wine-Based 7.3. Spirit-Based 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Packaging 8.1. Bottles 8.2. Cans 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel 9.1. Online Channel 9.2. Hypermarkets/Supermarkets 9.3. Liquor Stores 9.4. Bars and Restaurants 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. South Asia 10.5. East Asia 10.6. Eastern Europe 10.7. Middle East & Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 by Type, Packaging, and Distribution Channel for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. Halewood Wines & Spirits 20.2. Asahi Group Holdings Ltd. 20.3. Diageo plc 20.4. Bacardi Limited 20.5. Brown-Forman 20.6. Pernod Ricard 20.7. Shanghai Bacchus Liquor Co. Ltd. 20.8. Anheuser-Busch InBev 20.9. Suntory Holdings Limited 20.10. Manchester Drinks Company Ltd.
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RTD Cocktail Shot Market
