RTD Beverages Market by Product Type (Alcoholic and Non-alcoholic [Flavored, Tea, Coffee, Juices, Nectars, Dairy, Soft Drinks, Energy Drinks]), Packaging Type (Bottles, Cans), Distribution Channel (Supermarkets, E-commerce) - Global Forecast to 2031

The RTD Beverages Market was valued at $936.9 billion in 2023. This market is expected to reach $1582.7 billion by 2031, from an estimated $995.9 billion in 2024, at a CAGR of 6.8% during the forecast period 2024-2031.

RTD Beverages Market Size & Forecast

The growth of the RTD beverages market is mainly driven by the rising consumption of sports & performance drinks, growing demand for functional beverages, beverage manufacturers’ increasing focus on product innovation, convenience, and easy portability of RTD beverages, and lifestyle changes leading to the increased incidence of chronic diseases. However, the high prices of RTD beverages are expected to hinder the growth of this market. Furthermore, the growing availability of alcoholic RTD beverages and the rapid growth of the retail sector are expected to generate growth opportunities for the players operating in the RTD beverages market.

RTD Beverages Market: Competitive Analysis

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios and geographic presence and the key growth strategies adopted by them in the last 3–4 years. Some of the key players operating in the global RTD beverages market are Abbott Laboratories (U.S.), Nestlé S.A. (Switzerland), PepsiCo Inc. (U.S.), The Coca-Cola Company (U.S.), Suntory Holdings Ltd. (Japan), Keurig Dr Pepper, Inc. (U.S.), Red Bull GmbH (Austria), Danone S.A. (France), The Brown–Forman Corporation (U.S.), Monster Beverage Corporation (U.S.), AriZona Beverages USA (U.S.), Gujarat Cooperative Milk Marketing Federation Ltd. (India), Yakult Honsha Co., Ltd. (Japan), and Asahi Group Holdings, Ltd. (Japan).

Rising Consumption of Sports & Performance Drinks Supports the RTD Beverages Market Growth

The demand for sports and performance drinks is on the rise due to the increasing consumption among sportspersons and gym goers. These drinks have become an essential part of workout routines and are mostly consumed by people seeking health benefits from their beverages. Most sports & performance drinks contain carbohydrates (glucose), caffeine, B vitamins, and electrolytes (sodium, magnesium, potassium, and calcium). These drinks are consumed to hydrate the body during workouts and maximize energy uptake.

In recent years, there has been a marketing shift in the sports and performance drinks industry. These drinks are being increasingly offered to general consumers whereas earlier, athletes were the major target audience. Consumers’ growing inclination toward fitness and increasing participation in half and full marathons have helped the sports & performance drinks industry flourish.

Sports and performance drinks are designed to help athletes and active individuals improve their physical performance and recovery. These drinks typically contain ingredients, such as carbohydrates, electrolytes, and amino acids, which help replenish the body’s energy reserves and support muscle recovery.

In addition, the demand for sports & performance drinks is increasing as they enhance performance and endurance and allow athletes to exercise more vigorously. Moreover, the rising number of athletes and sportspersons in developing countries is expected to support market growth during the forecast period. For instance, according to the National Collegiate Athletic Association (NCAA), the number of NCAA athletes is increasing rapidly. In 2021–2022, approximately 520,000 students participated in NCAA championships sports, an increase of over 25,000 compared to 2017–2018. Also, people’s migration from rural to urban areas is causing a major demographic change, impacting consumption patterns.

Furthermore, millennials’ growing inclination toward physical and fitness-related activities and consumers’ increasing spending capacities and willingness to pay more for healthier alternatives are boosting the demand for sports & performance drinks. For instance, according to the Physical Activity Council, in 2021, 64.4% of baby boomers and 70% of millennials in the U.S. regularly participated in fitness sports.

These factors are increasing the consumption of sports and performance drinks, driving demand in the RTD beverages market.

Click here to: Get Free Sample Pages of this Report

Growing Availability of Alcoholic RTD Beverages Positively Influencing the Demand for Alcoholic RTD Beverages

The RTD alcoholic beverages category has witnessed tremendous growth and innovation in recent years. From spirit-based premixed cocktails to wine spritzers and hard seltzers, consumers can now choose from a wide range of RTD products that have malt, wine, spirits, and cider as their base. The rapid growth of this segment is mainly driven by the rising demand for spirit-based RTD drinks among youngsters, the increasing consumption of gluten-free RTD beverages, market players’ increased focus on innovation and product development, and the increasing popularity of RTD alcoholic beverages as lighter alternatives to beer, and more convenient alternatives to popular hard liquors.

Premixed cocktails, including spirit-based RTDs, have been the fastest-growing spirits category both in terms of revenue and volume in the last 2–3 years. Western consumers are increasingly prioritizing convenience, taste, variety, and quality in choosing their beverages—spirit-based RTD beverages fit perfectly into this trend.

Variety, convenience, and greater access to products are vital to the adoption of non-alcoholic RTD beverages. According to a survey by the Distilled Spirits Council of the U.S., 94% of respondents chose RTD alcoholic beverages because the taste aligned with their favorite alcoholic beverage, 83% chose the category due to brand familiarity, and 82% of the respondents said they preferred RTDs because “they taste better than beer.” The survey also revealed that 92% of respondents chose RTD beverages for their convenience, and 85% of consumers agreed that portability was an important factor.

Brands are successfully meeting the growing demand among consumers, with alcoholic RTD beverages capturing an increasingly large share of the alcoholic beverages market. This scenario is expected to generate growth opportunities for the stakeholders in this market.

Key Findings in the RTD Beverages Market Study:

In 2024, the Non-alcoholic RTD Beverages Segment is Expected to Account for the Largest Share of RTD Beverages Market

Based on product type, the global RTD beverages market is segmented into alcoholic beverages and non-alcoholic beverages. Non-alcoholic beverages are further segmented into carbonated soft drinks, sports & energy drinks, tea & coffee, juices & nectars, dairy & dairy alternatives beverages, flavored & fortified water, and other non-alcoholic beverages. In 2024, the non-alcoholic beverages segment is expected to account for the larger share of the global RTD beverages market. The segment’s large market share is attributed to the easy availability and convenience of non-alcoholic beverages, the unrestricted off-premises sale and consumption of non-alcoholic beverages, and the increased adoption of functional and plant-based beverages.

However, the alcoholic beverages segment is projected to register a higher CAGR during the forecast period 2024–2031. This segment's high growth is driven by the rising demand for spirit-based RTD drinks among youngsters, the increasing consumption of gluten-free RTD beverages, market players’ increased focus on innovation and product development, and the increasing popularity of RTD alcoholic beverages as lighter alternatives to beer and more convenient alternatives to popular hard liquors.

The Tetra Pak-packaged Beverages Segment is Projected to Witness Significant Growth in the Market During 2024–2031

Based on packaging type, the global RTD beverages market is segmented into bottled beverages (plastic bottles and glass bottles), canned beverages, Tetra Pak-packaged beverages, and other packaged beverages. In 2024, the bottled beverages segment is expected to account for the largest share of the global RTD beverages market. The segment’s large market share is attributed to factors such as the wide availability of bottled beverages in various shapes, sizes, and quantities, the convenient consumption, transportation, and storage offered by bottled beverages, the extended shelf-life of bottled products, and the cost-effectiveness of bottle packaging, which translates to the lower market prices of bottled products.

In 2024, the Supermarkets & Hypermarkets Segment is Expected to Account for the Largest Share of the Market

Based on distribution channel, the global RTD beverages market is segmented into supermarkets & hypermarkets, convenience stores, e-commerce, specialty stores, and other distribution channels. In 2024, the supermarkets & hypermarkets segment is expected to account for the largest share of the global RTD beverages market. The segment’s large market share is attributed to rapid urbanization, rising disposable incomes, the growing number of supermarkets and hypermarkets, and increased sales of RTD beverages in well-established supermarkets and hypermarkets.

However, the e-commerce segment is projected to register the highest CAGR during the forecast period 2024–2031. This segment's high growth is driven by its wide variety of products, easy accessibility and affordability, higher discounts compared to offline stores, and home delivery services provided by e-commerce platforms.

Asia-Pacific: Fastest Growing Market

Based on geography, the global RTD beverages market is divided into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of the global RTD beverages market. North America's major market share can be attributed to the well-established packaged drinks market, high awareness of the health benefits of functional beverages, growing adoption of alcoholic RTD beverages, and rapid innovation and development of RTD beverages.

However, the market in Asia-Pacific is expected to witness the highest CAGR during the forecast period. This growth can be attributed to the rising awareness about the health benefits of functional beverages, strong demand for herbal and plant-based beverages, rapid growth in the beverage industry, and growing consumer interest in trying new beverages. Also, growing population, rapid urbanization, increasing disposable incomes, and changing lifestyles in countries such as China and India further support the growth of this market in the region.

Key Growth Strategies:

Major companies in the global RTD beverages market have implemented various strategies to expand their product offerings and global footprints and augment their market shares. The key strategies followed by most companies in the RTD beverages market were product launches; expansion; mergers & acquisitions; and agreements, collaborations, and partnerships. Product launches were the most preferred growth strategies adopted by key players in this market during 2021–2024.

RTD Beverages Market Report Summary:

Key questions answered in the report: