The global RTD alcoholic beverages market is projected to register a CAGR of 6.0% during the review period. RTD alcoholic beverages are ready-to-drink beverages with a certain amount of alcohol content in them. The growth of the global RTD alcoholic beverages market is driven by the rising association of RTD beverages with convenience. Rising consumer preference for low alcoholic beverages is another factor boosting the sales of RTD alcoholic beverages. Players operating in the global RTD alcoholic beverages market are expected to witness lucrative opportunities owing to product innovation, adoption of growth strategies, and growth of the organized retail sector. However, surging demand for non-alcoholic beverages is restricting the market growth.
The key players operating in the global RTD alcoholic beverages market include Asahi Group Holdings, Ltd. (Japan), Halewood International Limited (UK), Mike's Hard Lemonade Co. (US), Bacardi Limited (Bermuda), The Brown-Forman Corporation (France), Pernod Ricard SA (France), Anheuser-Busch InBev SA/NV (Belgium), Diageo PLC (UK), Suntory Beverage & Food Limited (US), The SHS Group (UK). The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach along with diverse product portfolios. Companies such as Asahi Group Holdings, Ltd., The Brown-Forman Corporation, Pernod Ricard SA, and Diageo PLC dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.
The players are focused on investing in research and development and adopting strategic growth initiatives such as acquisitions, product launches, and expansions to strengthen their market position and capture a large customer base.
Threat Of New Entrants
The threat of new entrants in the global RTD alcoholic beverages market is expected to be moderate. There are several established players in the global RTD alcoholic beverages market. Therefore, it becomes difficult for new entrants to compete with established brands in the market. Additionally, new players need to invest heavily in creating a brand name through promotion and marketing. However, the barriers to entering the market are not very high and the initial investments required to start a RTD alcoholic beverages brand are not high either. The easy availability of raw materials and the increasing consumption of RTD alcoholic beverages incentivize players in the food & beverage industry to extend their product portfolios by adding RTD alcoholic beverages.
Bargaining Power Of Suppliers
The bargaining power of suppliers in the global RTD alcoholic beverages market is expected to be low. The suppliers in the global RTD alcoholic beverages market are food & beverages ingredients manufacturers and alcohol suppliers. There are several suppliers available in the market. Thus, the RTD alcoholic beverages manufacturers have the liberty to shift between suppliers as they are not dependent on a single supplier, which reduces their operational risks. Moreover, the suppliers are not only concentrated in one region but also have cross-regional presence, which reduces the switching cost among the manufacturers. Also, the limited scope of product uniqueness hampers the bargaining power of the suppliers.
Threat Of Substitutes
The threat of substitutes in the global RTD alcoholic beverages market is expected to be low. RTD alcoholic beverages have no close substitutes available in the market. However, the market is highly fragmented and faces internal competition at ingredient level from variants such as rum, whiskey, gin, vodka, and tequila, among others. Consumer might substitute one based RTD alcoholic beverages which another. Analyzing these various factors, it is identified that there are chances of product substitutes at internal level due to product variety but there is no close substitute to the RTD alcoholic beverages in general in the market.
Bargaining Power Of Buyers
The bargaining power of buyers in the global RTD alcoholic beverages market is expected to be high. The bargaining power includes the pressure consumers exert on manufacturers to offer high-quality products at low prices. Owing to the presence of established industry players in the market, the buyers have several choices, which also reduce switching costs, thus increasing the bargaining power of buyers. Moreover, consumers usually tend to experiment with new products in the market and often change their preferences which increases their bargaining power.
Intensity Of Rivalry
The intensity of rivalry in the global RTD alcoholic beverages market is expected to be high. The global RTD alcoholic beverages market is highly competitive, marked with fierce rivalry among the players in terms of product quality, variety, and pricing. The growing demand for RTD alcoholic beverages among consumers is creating opportunities for the players to emphasize innovation and product quality to expand their customer base. Thus, manufacturers are focusing on reducing production costs to compete in the cut-throat market. They are also engaged in strategic expansions to strengthen their businesses worldwide and survive in the market.
