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Strong premixes to see robust sales, as low-alcohol drinks preferred
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Monday, 25 November, 2019, 08 : 00 AM [IST]
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Increasing trends among millennials towards low alcohol drinks will accelerate growth of global high strength premixes by eight fold. This was among the findings of Fact.MR’s recently-published study on the high-strength premixes market.
The increasing trend of easy-to-make alcoholic beverages and cocktails in North America, positions the region as the highest shareholder during the forecast period.
The market for high strength premixes is highly-fragmented, dominated by large as well as small-scale online players.
Owing to these factors, the global high-strength premixes market to register a growth of more than five per cent over the forecast period (2019-2027).
Key takeaways from high-strength premixes market study
• High profit margins and presence of a moderate regulatory landscape are encouraging manufacturers to develop innovative flavours of high-strength premixes to capitalise on market opportunities
• Spirit-based RTD (ready-to-drink) grabs a significant share of the overall market and is one of the fastest pockets of growth, showing no signs of slowing down
• Study opines that increasing awareness about the risk of alcohol consumption, the high price associated with high-strength premixes and drinks, and the enactment of stricter laws on distribution of liquor products, may hamper growth of the high-strength premixes market in APEJ (Asia-Pacific excluding Japan)
• To gain a competitive edge over established players, emerging companies are offering their products in innovative cans and packaging, which is highly preferred by millennials. However, leading players in the market will continue to offer their products in glass bottle for increasing shelf life
• Based on regions, Europe is expected to witness highest growth during forecast period due to high capita income per person
• Innovative marketing strategies, such as online retailing, will be beneficial for manufacturers and distributors to expand their global footprint. For instance, in many regions, brands are garnering more consumer traffic through online retailing platforms for enhanced visibility
“The demand for spirit-based RTD is significantly high in Estonia, as well as other European countries. Demand for ready-to-drink or high-strength premixes continues to surge, while stringent regulations in regions such as North America and Europe may cause the market to witness a further decline in consumption and growth of high-strength premixes in the near future,” stated the analyst.
Affordability, tourism and convenience: Winning imperatives for growth in key regions
The study opined that the demand for high-strength premixes is expected to increase in Latin America, owing to the high-affordability and convenience of such beverages.
The emergence of multicultural societies and growing popularity of exotic liquor is revving up alcohol consumption habits among consumers in the APEJ region.
Restriction on the consumption of alcohol in the Arab world continues to be a major challenge for the MEA high-strength premixes market.
However, due to globalisation and increasing tourist inflow into countries such as Qatar and the UAE, many global market players are entering the region with strong business intent.
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