Major players in the premix cocktails market are Bacardi & Company Limited, Diageo Plc, Heineken NV, Altia Oyj, Carlsberg A/S, Belvedere SA, Ball Corporation, The Whisky Exchange, Suntory Holdings, and Mark Anthony Brands.
The Global Premix Cocktails Market is expected decline from USD 19.2 billion in 2019 and to USD 18.02 billion in 2020 at a compound annual growth rate (CAGR) of -5.95%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and reach USD 20.33 billion in 2023 at CAGR of 4.09%.
The market for premix cocktails consists of sales of premix cocktails and its related products. Premixed cocktails are also known as alcopops, flavored alcoholic beverages, ready-to-drink (RTD) alcohol-based beverages, pre-packaged spirits, or premixed beverages. These are prepared from alcohol mix with fruit juice, contains healthy amount of carbonation, and is a packed form of alcoholic beverages for direct consumption. Premix cocktails categories can be wine-based, spirit-based, or malt-based drinks. These flavored drinks with low alcohol content are available for purchase generally through online channels, small retail shops, and convenience stores.
Asia Pacific is the largest region in the premix cocktails market and is expected to be the fastest growing region in forecast period.
The bars are increasingly preparing premixes of cocktails and are refrigerating to serve the customers on request. The bartenders are mixing the cocktails ahead of the order and are prebatching them, giving them time to interact with the customers and make sure they have best experience. For instance, Mister Paradise, a bar and restaurant in Manhattan premixes a cocktail Cafe Disco and serves to its clients when ordered. Moreover, bartenders are increasingly selling their premixes outside the bar as well.
The premix cocktails market covered in this report is segmented by product type into rum; whiskey; vodka; wine; others. It is also segmented by flavor into fruits; spiced; others and by distribution channel into hyper/supermarket; departmental stores; specialty stores; online retailers.
The stringent regulations and the government imposing high taxes on premix drinks are expected to limit the growth of the market. The foreign brands are being imposed high import duties owing to the high competition in the market. The government regulations are one of the major factors restraining the growth of the premix cocktails market. For instance, in July 2019, the Philippines government announced plans to increase taxes on alcopops to discourage binge drinking and generate additional revenues. The government of the Philippines currently imposes a tax of 20% Valorem tax on the net retail price per proof of distilled spirits. Therefore, the increasing taxes on premix cocktails are have a negative impact on the growth of the premix cocktails market.
In December 2019, Diageo, Smirnoff vodka maker announced the acquisition of Tipplesworth, UK-based pre-mix cocktails specialist for an undisclosed amount. The acquisition is expected to bring great innovation in the product portfolio of the Diageo Company and seek to drive the expansion of the brand’s draught system in the UK on trade. Tipplesworth cocktail maker was founded in 2013 and is engaged in selling its passion fruit martini and espresso martini in 100 outlets across Great Britain.
Increasing consumer preferences for healthy drinks with low alcohol content is projected to boost the demand for premix cocktails over the forthcoming years. According to a report published by Forbes in February 2019, 65% of the UK alcohol consumers aged 25 to 34 are trying or have tried to cut back their alcohol intake. Additionally, according to The International Wine and Spirit Research (IWSR)’s low/no-alcohol report published in February 2019, 52% of the USA consumers are trying to reduce their alcohol consumption. Moreover, low/non-alcohol products are projected to record healthy growth in the UK, led by spirits recording a CAGR of 81.1% from 2018 to 2022, and ready-to-drinks products growing a CAGR of 44.3% during the period. Therefore, increasing consumer preferences for healthy or low alcohol drinks is predicted to propel the demand for the premix cocktails market over the forthcoming years.
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Ankur Gupta, Head Marketing & Communications