Ready-to-drink beverages are a growing category within the food and beverage industry. Health companies, adult beverage companies, and others like Nestle have already jumped into the booming industry. These drink products are sold everywhere such as gas stations, grocery stores, bars, and event venues. But just what is a ready-to-drink beverage, and why is the industry continuing to grow?
What Is an Example of a Ready-To-Drink Beverage?
More About Ready-to-Drink Beverages
Ready-to-drink (RTD) beverages describe any type of drink that reduces customer effort before consuming them. This is done by pre-mixing the ingredients that would be required to make the beverage. For example, spirits and flavorings for a specific cocktail, or coffee to make a latte that required only opening to enjoy.
A ready-to-drink beverage might cover both non-alcoholic products and alcoholic beverages. There are certain health drinks (like protein shakes) that might also be sold in the ready-to-drink form to make it easier for customers to consume.
Non-Alcoholic Beverages
Non-alcoholic beverages are popular all over the world. Look up the sales figures for any non-alcoholic beverage from a major brand, and it’s almost guaranteed to be a success. But what about ready-to-drink beverages?
Ready-to-drink beverages are meant to reduce the effort associated with a product people like so that they are more likely to take advantage of this accessibility and buy it.
That’s a winning strategy when you’re looking at products like coffee and green tea. Some health drinks like kombucha also fall within the non-alcoholic ready-to-drink beverage market.
Alcoholic Beverages
The definition of ready-to-drink beverages doesn’t just cover options like tea, coffee, or milkshakes. Alcoholic beverages are also a part of the market dominance that’s shown by the ready-product market.
Alcoholic beverages that require effort to make include most types of cocktails. If you’ve ever had a ready-to-drink cocktail, you will realize the true marketing power of spirits-based RTD beverages.
While people love to go out and order their favorite drinks, there’s just as much demand to have these drinks at home – or buy them for a party.
Ready-to-drink alcoholic beverages reduce the effort involved and make the pre-mixed cocktails more popular amongst consumers. This is why companies like Smirnoff have managed to cater to their audiences – and broaden their audience with the introduction of new drinks like spirits-based seltzers.
Market Picture: Why They’re Popular
A quick picture of the overall beverage market says that ready-to-drink beverages are in the top five. That’s not just consumer choice or good marketing, but sales numbers showcasing how successful these brands and products have managed to become.
Soda is popular, but soda requires no work from the customer except opening the can. The same can’t be said for many just-as-popular cocktails, coffees, and teas, which is where the ready-to-drink (RTD) category has exploded in recent years.
Consumer Convenience
The answer to why ready-to-drink beverages have become so popular lies in what they offer to the average consumer: pure convenience. Anything that reduces the amount of effort on the customer’s part, could be a wealth of potential return for the company. We love coffee, but we don’t want to stop and make our favorite iced coffee drink three or four times per day. That is where the RTD beverage market comes into play.
The Larger Company Slice
Companies like Starbucks and Nestle have realized the importance of consumer convenience, and hold some of the most popular ready-to-drink beverages on the market. There’s no need to go through the drivethrough to enjoy your favorite coffee blend anymore. There are already products on the market from these companies that can bring your favorite drink right to your home.
Fortress Nutrition
Fortress Nutrition is your full-service food and beverage contract manufacturing partner. From manufacturing & packaging to warehousing & fulfillment, we partner with discriminating high-growth clients to provide them with all their contract manufacturing and logistics needs.
Fortress Nutrition is your full-service food and beverage contract manufacturing partner. From manufacturing & packaging to warehousing & fulfillment, we partner with small to large clients to provide them with all their contract manufacturing and logistics needs.