GLOBAL: Asia, Americas to spearhead growth in RTDs - research
The ready-to-drink (RTD) sector is set for further expansion, a new IWSR/just-drinks report has forecast, with the Asia Pacific and Americas regions expected to provide most of the growth.
Forecasts from the report, which is published this week, expect the market for mixed drinks to increase to 339.3m cases in 2013, from 330m cases in 2012.
According to The IWSR and just-drinks, growth is being underpinned by continued product innovation in the sector, notably through the addition of new flavours. "RTDs have consistently evolved, adapted and innovated to find new ways of fulfilling consumers' needs," the report states.
While the CIS and Europe are both forecast to decline over the coming four years, Asia’s share of the global RTD market will increase from the current 40% to 43% by 2017, driven by increases in Japan and Australia. The Americas’ share will also rise, from 31% to 33%, on the back of growth in the US, Brazil and Mexico.
According to The IWSR and just-drinks, the sector showed a compound annual growth rate (CAGR) of 0.62% between 2007 and 2012, mirroring the 10-year trend. While there were declines in Russia, Australia and the UK over that period, Japan – the largest single pre-mix market – continued to rise, posting a five-year CAGR of 3.6%.
In fact, the market picked up momentum in 2012, posting a 3.2% rise from 2011. Growth was led by Japan with a rise of 3.9% and the US where sales increased by 1.9%. Australia, Mexico and Canada also registered growth, the report states.
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