The State of the Global Cocktail Market
The global cocktail market has experienced significant growth over recent years, with evolving consumer preference and increasing demand for ready-to-drink (RTD) cocktails. According to Market Data Forecast, in 2023, the global cocktail market was valued at USD 1.08 billion and is expected to double by 2029, reaching USD 2.16 billion, with a compound annual growth rate (CAGR) of 12.28% from 2024 to 2029. This surge is driven in part by the rising popularity of cocktails featuring Tequila and agave-based spirits, such as the Margarita and Tequila Sunrise, which continue to show steady year-on-year growth. Rum-based cocktails also maintain strong demand, with both the Mojito and Piña Colada ranking among the top five most popular drinks worldwide.
Driving factors
Improved lifestyles and increasing income per capita in developing countries
The global cocktail market has been expanding rapidly in developing nations due to the rising disposable income in these economies. Data from the IWSR indicates that some key growth regions include Brazil, Mexico, South Africa, Vietnam, and Nigeria (combined additional value: around $14.4 billion by 2028). As the growth in more established markets is likely to be slower, trend watchers speculate that the majority of cocktail consumption can shift from developed to developing markets. For instance, the US market is expected to see modest annual growth of around 0.8% from 2023 to 2028, whereas India is forecasted to experience a much higher growth rate, exceeding 4% during the same period.
Customer’s demand for premium products
Cocktail drinkers show a clear preference for premium quality, with 41% willing to pay extra for better drinks. According to CGA strategy, nearly 70% of cocktail enthusiasts choose high-quality options over cheaper alternatives, compared to just over 60% of average drinkers. This reflects a broader shift towards prioritising quality over quantity, driven by the rise of cocktail culture, craft distilleries, and demand for unique, artisanal drinks. Increased disposable income in some markets may also be fueling the global growth in premium cocktail sales.
The growth of the RTD cocktail market
The Ready-to-drink (RTD) market is expected to expand by 12% in volume between 2022 and 2027, with its value anticipated to hit $40 billion across ten major markets. One of the main appeals of RTD cocktails is their convenience, making them perfect for outdoor social events. Their shelf-stability means they can be stored in a pantry for later use, chilled in a fridge for quick access, or packed in a cooler for outings like camping or tailgating. Demand isn't just coming from individual consumers; bars, restaurants, stadiums, and hotels also embrace RTD cocktails for their ease and efficiency compared to traditional hand-mixed drinks.
Which markets are leading the chart for the cocktail market?
While traditional cocktail markets in North America and Europe remain strong, developing countries are becoming key drivers of industry growth. In India, demand for premium spirits and cocktails is rising, fueled by urbanisation, a growing young population, and a wealthier middle class. Similarly, South Africa is seeing increased cocktail sales, particularly in urban areas, where younger consumers are embracing social drinking and international trends.
Who are the target consumers?
Young adults & health-conscious consumers
Younger generations, particularly Gen Z, are driving cocktail market growth with their increasing purchasing power and interest in premium, unique drinks. They seek not just beverages but experiences, often influenced by visually appealing, social media-worthy presentations. Gen Z’s focus on health and sustainable wellness has also spurred demand for health-conscious cocktails, including low or no alcohol options made with fresh mixers and natural ingredients. Many in this group prefer drinks that complement their active lifestyles, incorporating elements that support hydration, energy, and cognitive function.
At-home entertainers
At-home entertainers have become a significant target audience for cocktail sales, with Millennials leading this trend. More people are choosing to start their evenings at home with cocktails before heading out, driven by the appeal of cost-effective socialising. In fact, 30% more people now prefer to enjoy cocktails at home in 2024, compared to just 16% five years ago. The COVID-19 pandemic played a major role in accelerating this shift, as lockdowns encouraged people to recreate the bar experience in their own homes. Additionally, there's been a 55% increase in interest in mixology as consumers explore new skills and experiment with different cocktail recipes. This has created a growing demand for premium spirits, mixers, and cocktail-making tools, positioning home bartenders as a key market segment for the cocktail industry.
Rum’s role in the growing cocktail market
Tequila and vodka currently dominate the US’s RTD cocktail market due to their versatility and widespread popularity. However, the RTD segment is seeing rapid growth in Rum-based offerings, driven by Rum’s increasing demand in the broader spirits market. Rum now represents 13% of the total spirits category, and its rising popularity is reflected in new RTD options, including trendy coffee-infused variations. These products cater to evolving consumer preferences, tapping into both the growing interest in Rum and emerging flavour trends.
A reliable Rum supply for your cocktail product
As consumers increasingly seek premium cocktail experiences, the demand for high-quality ingredients is more important than ever. If you're looking to introduce unique Rum flavors to your shelf or canned beverages, E&A Scheer is here to work with you. With over three centuries of expertise in the Rum industry, we can help you stand out in the competitive drinks market. E&A Scheer works with you to create the perfect Rum blend, catering to the rising demand for premium cocktail experiences. Visit our Blending Tool to discover the flavor profile that best aligns with your brand and story.
Visit the Blending Tool
Consumer trends and future Outlook
Increasing demand for RTD cocktails is expected to continue as convenience, taste, and quality remain critical factors for modern consumers. In particular, Rum-based cocktails are forecasted to maintain their rise in popularity, especially as more consumers become aware of the spirit’s diversity and compatibility with various mixers and flavors. As global alcohol consumption patterns evolve, the cocktail market is expected to adapt and thrive, particularly with the influence of wellness trends shaping new product offerings.
Conclusion
The global cocktail market is thriving, and Rum plays a central role in this rapid growth. As the demand for ready-to-drink cocktails continues to rise, Rum's versatility ensures it remains a favorite spirit for both consumers and manufacturers. With its ability to seamlessly blend with tropical flavors, Rum-based RTDs are well-positioned for sustained success in the global market.
