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New York, USA, 8th January, 2021 – The global alcoholic RTDs/ high strength premixes market promises noteworthy growth, as popularity of alcopops remains high among countries with traditional wine culture, youngsters, and especially women. The often sweet taste of alcopops with growing advancement in packaging embedding trendy, anti-social, and rebellious themes remain a big hit among youngsters, thanks to their youthfulness, and largely exclusive nature. Banking on the rising popularity, the market for RTDs, and high strength premixes will likely reach $24,635 million in valuation by end of 2025, growing at 3.9% CAGR during 2020-2025.
E-Commerce Remains a Key Prospect as Convenience Takes Priority
InstaCart recently announced its decision to serve alcoholic beverages throughout the US along with regular groceries. The decision received a positive response, as along with alcoholic beverage, the company witnessed an increase of 10% basket size earnings on other items. Similarly, according to Google trends in 2020, the sales of online alcohol increased by 260%, comparative to 2019. Similar trends are witnessed across the border during the pandemic as Aldi, one of the largest grocery chain in the UK recorded 10.6% growth in December 2020, as compared to the previous year. As bars, and pubs remained close in the UK, Aldi witnessed an increase in both online, and offline sales in the UK. Moreover, drinks like wines, and special buys witnessed an increase of 75% in sales, with 4.5 million bottles of champagne, sparkling wine, and prosecco sold. Holidays remained a key motivation during December. However, the growth also follows binge drinking pattern during the pandemic.
The binge drinking patterns during pandemic resulted in major growth for premixes, and high strength RDTs. During April 2020, there was a 550% increase in the US over baseline. Liz Paquette, head of consumer insights reported that spirit sales, driven by Bourbon, Vodka, and Tequilla continue to shoot up. Moreover, he also noted that the growth of other liquors also outpaced previous records with liqueurs, cordials, and schnapps reported tremendous increase, driven by in-home consumer experimentation. The metropolitan culture in big cities also remained a solid impetus as major cities like New York, Boston, Devnver, and Chicago reported consistent growth. The growth is noticeable as these cities bore the worst of the brunt, and picked up demand before the lockdown announcements, as the demand continued to shift largely through e-commerce. Pauette also reported that collaboration with delivery partners remained essential to growth. For example, a promising player Drizly reported an increase of 2 hours from its initial delivery lines of 60 minutes during the pandemic, despite a tremendous increase of 50% in delivery workforce.
Asia Pacific to Drive Growth of Premium Brands as Demand Remains Robust
The pandemic has also boosted growth for alcoholic brands across the board in several regions. The patterns of rising alcohol demand in America, and Europe are similar in Asia Pacific as well. For example, in India, many states hiked taxes by as much as 75% to fill coffers after the pandemic. However, despite the tremendous increase in prices, premium brands like Kingfisher reported month-on-month recovery once the nationwide lockdown ended. Moreover, inspired by the growth, brands like Radico Khaitan, announced its plans to enter premium segments after the promising growth. Furthermore, other brands like alcobev witnessed a rise in spend of 10-15% on average.
Healthier Drinks, and Sweet Flavours Likely to Make Way for New Growth
According to research published in the Springer journal, despite the increasing move towards setting up bigger, and bolder breweries, the consumer population continues to move towards low gravity, small, and non-alcoholic beer varieties in the US. The published paper surveyed contemporary patterns of alcohol consumption, and population literature to understand changing consumer behaviour. The low gravity beers continue to rise in demand, thanks to dietary and healthy preference, rising awareness about habits like drinking and driving, and lowering social stigma associated with low-quantity alcoholic drinks. The research further recommends, expanding low-alcohol beer production as sociocultural motivation for drinking witness a tide-turning change in the current generation. For example, millennial exhibit far more health-conscious behaviour in the US as they consume less alcohol, are more concerned about their health-wellbeing, and visit the gym more often.
The research is in-line with rising demand for healthier, sweet flavoured alcoholic drinks. For example, as the bars, and pubs remained in lockdown in the UK, demand for sweet flavoured alcohol rose by 20% in the UK. Moreover, according to reports from brands like Uncle Joe's Mint Balls, the demand for its local-grown, and vegan flavours like Apple Cider, Dark Rum, Rhubarb, and Wildberry Gin remained a hit during the lockdown. Based on the positive response from the ground, the manufacturer invited suggestions to suggest new flavours from local pubs and bars. This is another important consumer trend in the Alcoholic RTDs/ High Strength Premixes Market. As social media dictates the alcohol consumption far more than mainstream media today, the social attitudes for alcohol consumption remains more open to sweet flavoured drinks, with in-home experimentation. Additionally, thanks to lower costs of social media marketing for small players, the new products remain a robust opportunity on the horizon for small, and local breweries.
Due to the advent of social media, the goal-post for alcohol consumption operates in a dynamic, and vibrant social sphere. Moreover, the patterns are similar across the board in soft-drinks market, wherein organic, natural, and new experimental varieties continue to find new-age appeal for tech-savvy millennials. The advent of social media, and subsequently, more social culture of alcohol consumption will make way for healthier drinks. This has helped propel demand among non-drinkers among religious sections of consumers. The advent of social drinking culture, and new technologies enabling the premix like herbs show promise for growth among previous non-drinking population. Moreover, the expansion of breweries, and softening of government stances globally will likely make more new opportunities for players in new regions.
Market by Product Type: Spirit-based RTDs, Wine-based RTDs, Malt-based RTDs, High-Strength Premixes
Market by Distribution Channels: Supermarket & Hypermarket, Liquor Specialist Store, Online Retailing, Duty-Free Stores, Other Distribution Channels
Market by Region: North America, Europe, Asia Pacific, South America, Middle East & Africa
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