RTD sales forecast to remain strong - research
The overall RTD category is set to grow
The latest joint research from The IWSR and just-drinks has predicted that the global market for ready-to-drink (RTD) products will go from "strength to strength" over the next five years.
In research published this month, The IWSR and just-drinks have forecast that the overall category will swell from 393m cases last year to 455m cases by 2020. The growth would represent a compound annual growth rate (CAGR) of 3%.
Key to the overall growth is "explosive" expansion in China which will join the US and Japan as the principal national markets for RTDs. Together, the US, Japan and China will account for more than 280m cases by 2020.
While there were signs of a slowdown in China last year, the report states, growth in the country over recent years has been phenomenal. As recently as 2012, RTD volumes were only just above 1m cases, but China grew to an 8m-case market by 2014. With a CAGR of 37.2%, volumes in China will reach 64m cases in 2020, the report forecasts.
Growth trends in the more mature markets of the US and Japan look "unspectacular" by comparison, the report states, "but both will exhibit solid growth". The US will expand by a CAGR of 1.1% to reach 116m cases in 2020, and Japan is expected to grow by a CAGR of 2.1% to 103m cases.
Recent dramatic volume declines in Russia, however, are set to continue.
While other principal developed markets – namely Australia, the UK and South Africa – will experience slow category declines of less than 1% (CAGR) to 2020, the report says this will be partially offset by gains in a number of emerging markets such as Brazil, Argentina, India and the Philippines.
Other emerging markets of note are to be found in sub-Saharan Africa. Nigeria, Kenya, Ghana, Angola, Cameroon and Namibia are all predicted to show good growth during the forecast period.
The predicted pattern for the coming five years builds on strong success between 2010 and 2014 that saw the global market for mixed drinks add almost 70m cases to reach nearly 390m cases.
Global RTD insights - market forecasts, product innovation and consumer trends
The Ready To Drink (RTD) or mixed drinks category added 20.2m cases in 2014 to reach 388.5m cases, up from just under 319m cases in 2010, representing a healthy compound annual growth rate (CAGR) of 5...read more
- Most Valuable Spirits Brands in 2017 - The facts
- Diageo Africa president O'Keeffe on beer & spirits
- Travel Retail needs a disruptor - Comment
- Most Valuable Beer Brands in 2017 - The facts
- Is sustainability now as important as financials?
- Diageo ready to lock horns with AB InBev in Africa
- Fever-Tree eyes bumper NPD, pack formats for 2017
- Diageo unveils Blender's Batch in the US
- Heineken mulls M&A with $1.75bn notes issue
- Heineken sees Tesco pull SKUs in UK
- Central and East Europe Report Package
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Spirit Market in the Top 5 European Countries to 2021 - Market Size, Development, and Forecasts