The Ready-to-Drink Beverage Market – All You Need to Know

The ready-to-drink (RTD) beverage market has seen explosive growth in recent years. This sector caters to consumers who seek convenience and instant gratification in their busy lives.

With an array of options ranging from alcoholic beverages to non-alcoholic alternatives, the RTD market offers something for everyone. The appeal lies in the ease of access and the innovative flavors that meet the evolving demands of health-conscious consumers.

This article explores the current state, emerging trends, and key drivers shaping the RTD beverage market.

Market Overview

The RTD beverage market is vast and diverse, encompassing various products designed for immediate consumption. This market includes both alcoholic and non-alcoholic beverages, catering to a wide range of tastes and preferences.

The demand for RTD products has surged due to urbanization and hectic lifestyles, prompting manufacturers to innovate continuously. In 2023, the global RTD beverage market was valued at $732.49 billion and is projected to reach $1,227.81 billion by 2032, with a compound annual growth rate (CAGR) of 6.06%.

Factors Driving Demand

The increasing consumer preference for convenient and healthy options is a significant factor driving the RTD market. People are more health-conscious than ever, seeking beverages that offer functional benefits such as immune support, energy enhancement, and hydration.

Including functional ingredients like probiotics, adaptogens, and natural sweeteners in non-alcoholic RTD beverages has resonated well with health-conscious consumers.

The shift in consumer behavior during the COVID-19 pandemic significantly boosted the demand for RTD beverages. With more people staying at home, the convenience of ready-to-drink options became more appealing. This period saw a notable rise in the consumption of both alcoholic and non-alcoholic RTD beverages, driven by the need for easy-to-access refreshments that do not require preparation.

Key Market Segments

The RTD beverage market can be segmented into alcoholic and non-alcoholic categories. Alcoholic RTD beverages include spirits-based, malt-based, and wine-based drinks. These products offer the convenience of premium cocktails and seltzers in ready-to-enjoy formats.

Non-alcoholic RTD beverages cover a broad spectrum, including teas, coffees, energy drinks, and functional waters.

Alcoholic RTD Beverages

1. Spirits-Based RTDs: These beverages include premixed cocktails and seltzers made with distilled spirits. They offer a premium drinking experience with the convenience of ready-to-drink packaging.
2. Malt-Based RTDs: These drinks use a neutral malt base and come in various flavors, making them a popular choice for easy drinking. Examples include hard seltzers and hard kombucha.
3. Wine-Based RTDs: These beverages feature wine as the primary alcohol and offer a convenient way to enjoy wine cocktails in portable formats.

Non-Alcoholic RTD Beverages

Non-alcoholic RTD beverages have seen significant growth, particularly among younger consumers who are inclined toward health and wellness. These drinks include:

• CBD Drinks: Infused with cannabidiol, these beverages offer relaxation benefits without the psychoactive effects of THC.
• Sparkling Waters: Carbonated water with added flavors, often with no sugar or calories.
• Teas and Coffees: Ready-to-drink teas and coffees provide a quick caffeine fix with various flavor options (find out more about caffeine in matcha).

Health-Conscious Offerings

With the growing focus on health and wellness, many consumers are seeking RTD beverages that offer low-calorie or zero-sugar options. Below are the calorie details for some of the top non-zero sugar RTD beverages, along with information on zero-sugar varieties and the sweeteners used in them:

1. Coca-Cola Classic: 140 calories per 12 oz can
2. Pepsi: 150 calories per 12 oz can
3. Monster Energy Original: 210 calories per 16 oz can
4. Red Bull: 110 calories per 8.4 oz can
5. Gatorade Thirst Quencher: 140 calories per 20 oz bottle
6. Vitaminwater: 120 calories per 20 oz bottle
7. Snapple Lemon Tea: 150 calories per 16 oz bottle
8. Bai Antioxidant Infusion (non-zero): 70 calories per bottle
9. LaCroix (flavored): 0 calories per can (no sugar)
10. Starbucks Frappuccino (bottled): 290 calories per 13.7 oz bottle

Zero-Sugar Varieties and Sweeteners

Zero-sugar RTD beverages often use artificial or natural sweeteners to maintain flavor without adding calories. Common sweeteners include:

1. Coca-Cola Zero Sugar: Sweetened with aspartame and acesulfame potassium.
2. Pepsi Zero Sugar: Uses a blend of aspartame and acesulfame potassium.
3. Monster Energy Zero Ultra: Contains erythritol, sucralose, and acesulfame potassium.
4. Red Bull Sugarfree: Sweetened with aspartame and acesulfame potassium.
5. Gatorade Zero: Uses sucralose and acesulfame potassium.
6. Vitaminwater Zero: Contains erythritol and stevia.
7. Snapple Zero Sugar Tea: Sweetened with aspartame.
8. Bai Antioxidant Infusion: Uses erythritol and stevia.
9. LaCroix Sparkling Water: Unsweetened.
10. Starbucks Nitro Cold Brew (Unsweetened): Unsweetened.

Sweeteners and Health

Zero-sugar beverages typically use artificial or natural sweeteners to maintain flavor without the calories of sugar. Common sweeteners include aspartame, sucralose, acesulfame potassium, erythritol, and stevia.

• Aspartame: A low-calorie sweetener used in many diet sodas. It is generally considered safe but can cause issues for individuals with phenylketonuria (PKU).
• Sucralose: A zero-calorie sweetener that is 600 times sweeter than sugar. It is widely used in beverages and is considered safe by many health organizations.
• Acesulfame Potassium: Often used in combination with other sweeteners to enhance sweetness without calories. It is considered safe by regulatory agencies.
• Erythritol: A sugar alcohol derived from fruits; has 0.2 calories per gram. It is on the list of “Generally Recognized as Safe” foods by the FDA. So, long-term safety studies of erythritol aren’t required currently.
• Stevia: Derived from the Stevia plant; up to 300 times sweeter than sugar but contains no calories.

Serious problem – Microplastics in our bodies

Did you know that chemicals can leak out of the plastic things we use every day? These chemicals can get into our bodies from water bottles, plastic knives, and products like lotions or makeup. Once in our bodies, some of these chemicals have been linked to serious health problems.

For example, the chemicals may disrupt how our hormones work. This is called endocrine disruption. They have also been tied to weight gain, problems controlling blood sugar, issues with reproduction, and some cancers.

Scientists have found plastic pieces so tiny they are called microplastics in things like tap water and salt. But what does this mean for our health? There’s still a lot we don’t know about how microplastics might affect people. More research is needed to better understand if microplastics are truly harmful.

The World Health Organization looked at current studies on microplastics and our health. They found limited proof that microplastics are for sure causing major health problems. There are big gaps in what we know. Most experts agree we need more complete research before we’ll understand if microplastics pose a real risk. We need to study how much people are exposed to microplastics and what if any, effects they may have on our bodies and overall wellness.

Do you ever wonder about all the little pieces of plastic we can’t see and how they might affect our health? Scientists call them microplastics. Microplastics are very tiny pieces of plastic that are everywhere – in the air we breathe, the food we eat, and the water we drink.

How do microplastics get inside of us?

Mostly when we accidentally eat or breathe them in. This can happen because microplastics are hidden in things like store-bought food, and bottled water, and pollution in the air. Once microplastics enter our bodies, it cause problems.

Microplastics in our bodies can lead to inflammation. Inflammation is when your body is sore or swollen because it’s fighting an infection. Microplastics can also damage our DNA and even cause it to change.

This is called genotoxicity and it isn’t good for our cells. Microplastics also create oxidative stress in our bodies. Oxidative stress happens when there are too many molecules called free radicals in our bodies. Free radicals can harm cells if there are too many of them.

All of these things – inflammation, DNA damage, and oxidative stress – have been linked to serious health issues. Some of the health issues microplastics may cause include cancer, heart disease, and other problems.

Energy Drinks

Energy drinks are a significant segment within the RTD market. These beverages are designed to provide a quick boost of energy and alertness, often through the inclusion of caffeine, taurine, and other stimulants. Popular energy drinks include:

• Red Bull: Known for its classic formula that includes caffeine, taurine, and B vitamins.
• Monster Energy: Offers a variety of flavors and formulations, including low-calorie and zero-sugar options.
• Rockstar Energy: Another major player in the energy drink market, with a wide range of flavors and energy-boosting ingredients.
• 5-hour Energy: A popular energy shot that provides a quick and convenient energy boost.

While energy drinks are popular, they are not without controversy. Overconsumption can lead to health issues such as increased heart rate, high blood pressure, and in some cases, more severe health problems. Consumers need to be mindful of their intake and choose options that align with their health goals.

Conclusion

The ready-to-drink beverage market is poised for continued growth, driven by consumer demand for convenience, health benefits, and innovative flavors. The industry’s ability to adapt to changing consumer preferences and market dynamics will be crucial for its success.

As brands continue to innovate and explore new opportunities, the RTD beverage market will remain a vibrant and dynamic sector in the global beverage industry.