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Trends to Watch: RTD No- and Low-Alcohol Beverages

The Increasing Popularity of Ready-to-Drink No- and Low-Alcohol Beverages and How Gamer Packaging is Situated to be the Ultimate Packaging Resource

As the market for ready-to-drink (RTD) beverages expands, one trend gaining traction within the category is no- and low-alcohol beverages. The RTD market continues to gain new users, according to Mintel’s RTD Alcoholic Beverages – US, 2021, and all RTD segments are predicted to increase through 2024. RTD beverages are favored for being convenient and offering consumers a variety of options that diversify the drinking experience. With this shift toward easy and flavorful drinking, we’re also seeing the increasing popularity of no- and low-alcohol drinks among consumers who are seeking healthier, more conscious consumption options.

Why Consumers are Choosing No- and Low-Alcohol

No- and low-alcohol beverages are redefining the beverage market by making up for the shortcomings of other categories. They offer consumers the convenience and variety of flavor options they seek while also appealing to trending preferences for lower sugar content, natural juices, fewer ingredients, and alcohol moderation. Mintel’s Dark Spirits – US, 2021 reports 36% of consumers purchase lower ABV spirits with the leading reason why being alcohol moderation. Accordingly, the Mintel’s Beer – US, 2021 found that that 18% of beer consumers purchase low- or alcohol-free beer, a segment that is expanding as a result of customer intrigue and innovative marketing. No- and low-alcohol beverages cater to those who want to replace alcoholic beverages without sacrificing taste, as well as those who want to venture beyond standard beer, water or soft drinks. According to the IWSR, the no- and low-alcohol category’s market value has reached nearly $10 billion across key global markets, and volume is expected to grow at a CAGR of more than 8% between 2021 and 2025, indicating that RTD no- and low-alcohol beverages are here to stay.

RTD No- and Low-Alcohol Beverages—How to Stand Out from the Crowd

What makes these beverages convenient and enjoyable aside from the drink varieties and flavor options? Their packaging. Most RTD no- and low-alcohol beverage brands must choose between aluminum cans and glass bottles as standard packaging options. To make that choice, they have to consider decorating options, production costs, sustainability, compatibility constraints, supply chain availability and what attracts their target audience.

When it comes to choosing a RTD beverage, Mintel discovered that portability and packaging design are key choice factors among consumers. But what does that mean for brands?

Glass may be an appropriate choice for brands seeking a more premium presentation. Cans, on the other hand, are more ideal for those whose target audience wants a drink with functionality because they can be used in places where glass is often prohibited. Some brands want their product to be visible through the packaging and opt for a glass bottle, whereas others want to showcase their branding artwork by using a printed or sleeved can. Because of their ability to be infinitely recycled, aluminum cans might also be a more appealing packaging choice for brands with an environmentally conscious target audience.

Along with branding and functionality, supply chain availability is frequently a deciding factor, especially for newer brands entering the market. It’s important to partner with a packaging supplier who’s able to source unique packaging solutions that fit every business need and attract the target audience.

Why Gamer Packaging

At Gamer Packaging, we are uniquely positioned to assist brands in determining the best packaging option for their RTD no- and low-alcohol product. Our team of experts design packaging solutions that meet brands’ aesthetic, functional, compatibility, and volume requirements. By working with hundreds of manufacturers worldwide, we can source complete packaging solutions and provide comprehensive services to help any brand stand out from the competition.

Learn more about Gamer Packaging’s capabilities or get in touch with our team today to talk about your RTD no- and low-alcohol beverage!