IWSR: Japan to lead global Ready-to-Drink category

Japan will be leading the global ready-to-drink market by 2022, according to a recent report by the IWSR, while sales of premixed cocktails will continue to grow.

One of the canned cocktails at Genuine Liquorette

The Asian island country has already overtaken the US to become the largest RTD market by volume in the world, and the two countries together account for more than half of global volumes.

In the years to 2022, Japan is forecast to account for 19 million of RTD’s forecasted 26 million additional case sales, predicted IWSR.

The US, however, is in decline, impacted by the lack of longevity of some RTD products and the growing consumer desire for healthier, fresher and less sugary options, the drinks research firm explained.

The trend for healthier and fresher products was also a major factor in the 8 million case sales decline in 2017, prompting producers to look for premixed cocktails which are using premium spirit bases and fresh, authentic ingredients, according to IWSR.

Meanwhile, sales of premixed cocktails focusing on premium, good-quality ingredients, from ready-to-serve gin-and-tonics to twisted classic cocktails and even original recipes are on the rise. The trend has now spread to the biggest RTD market of them all, Japan.

Beyond the major markets, RTDs are enjoying growing success in emerging economies, where their affordability is a key factor in recruiting younger consumers of legal drinking age – including Mexico, South Africa and sub-Saharan Africa. Brazil and China have recently declined but remain sizeable markets for RTDs.

“RTDs allow emerging-market consumers to enjoy the status of an international brand name, such as Jack Daniel’s, Jim Beam or Smirnoff, at a fraction of the price of a full-sized spirits bottle,” the report points out. However, 29 of the top 50 RTD markets have fallen since 2012, and some of the strongest historical destinations – Australia, Russia, the UK and Ukraine – are now in long-term decline, with little immediate prospect of recovery.

Meanwhile, cider’s mild resurgence is poised to continue in the coming years, fuelled by a boom in fruit cider sales in the UK, the category’s largest market by some distance. The established brands are not necessarily reaping the rewards of this growth, though. In 2017 leading brand Strongbow, responsible for nearly 15% of the cider category in Europe, saw its sales decline.

One of the factors underpinning this apparently counterintuitive phenomenon is the premiumisation trend now prevalent across many of cider’s largest – and fastest-growing – markets. ‘Craft’ cider brands are enjoying notable success as consumers increasingly move away from overtly and artificially sweetened products.