Future Investment Prospects of China's Ready-To-Drink (RTD) Industry
As a new and promising category in China's current alcohol market, the ready-to-drink (RTD) industry is gradually attracting the attention of both investors and consumers. Although the market is still to be further developed, there are many signs that the industry has a broad investment prospect in the future.
1、Current Situation of the Prepared Drinks (RTD) Market in China


      The development of the Chinese market for pre-mixed wines is relatively late, but has grown significantly in recent years. However, compared with the international market, China's pre-mixed wine market is still in its infancy.
      In terms of consumer groups, it is now mainly focused on young consumers in first- and second-tier cities, especially those who pursue fashion, convenience and personalized consumption experience. They are more receptive to new things and are willing to try such innovative drinks as premixed wine.
      In terms of market size, although the pre-mixed wine market has experienced rapid growth over the past few years, the overall size is still relatively small. According to relevant statistics, compared with mature markets such as Europe, the United States and Japan, China's per capita consumption of pre-mixed wine still has huge room for improvement. For example, the per capita consumption of pre-mixed wine in the US is 8.5 liters, and in Japan it is 13.7 liters, while in China it is only 0.2 liters. This also reflects the huge growth potential of China's pre-mixed wine market in the future.
      In addition, the competitive landscape of the market has not yet stabilized. At present, the major brands of pre-mixed wines in the market include RIO, a subsidiary of Paragon, etc. However, with the continuous expansion of the market, more and more enterprises have started to enter this field, and the competition has gradually intensified.
2、Reasons why China's pre-mixed wine market is yet to be developed
Consumption habits and culture
      China's traditional drinking culture is dominated by baijiu, beer and wine, and consumers' awareness and acceptance of premixed wine as a new beverage is relatively low. In addition, drinking habits also limit the development of pre-mixed wines to a certain extent, for example, in social occasions, baijiu and beer are often more popular.
Insufficient market education
      Due to the relatively short period of time that pre-mixed wine has been in the Chinese market, consumers have limited understanding of the characteristics of pre-mixed wine categories, drinking scenarios and pairing methods, etc. This has resulted in consumers choosing pre-mixed wine when choosing a drink. This has led to consumers tending to favor categories they are familiar with when choosing drinks.
Sales channels to be expanded
      Currently, the sales channels of pre-mixed drinks are mainly concentrated in supermarkets, convenience stores and e-commerce platforms. However, the relatively low rollout rate in the restaurant channel, bars and nightclubs has limited product exposure and sales opportunities.

3、Positive factors for the future investment outlook of China's premixed wine industry

Driven by Consumption Upgrading
      With the continuous development of China's economy and the improvement of residents' income level, the trend of consumption upgrading has become increasingly obvious. Consumers' demand for quality, taste and personalization of beverages continues to rise, and premixed wine, as a kind of innovative and fashionable beverage, is able to meet consumers' demand for high-quality and diversified beverages.
Rise of the young generation of consumers
      The young generation of consumers is gradually becoming the main force in the consumer market. They are highly receptive to new things and pursue personalized, convenient and healthy consumption experiences. Premixed wine, with its rich flavors, low alcohol content and stylish packaging, meets the consumption preferences of young consumers and is expected to grow rapidly with the growth of the younger generation of consumers.
Popularization of the concept of healthy drinking
      As people become more health-conscious, the concept of healthy drinking is gradually gaining popularity. The relatively low alcohol content and rich fruit juice content of pre-mixed wine make it a relatively healthy choice of beverage to a certain extent. This will attract more health-conscious consumers to try and consume premixed wine.
      Technological innovation and product upgrading As brewing technology continues to advance and innovate, the quality and taste of premixed wine will continue to improve. At the same time, companies can meet the increasingly diversified needs of consumers through the development of new flavors, formulas and packaging, further boosting the market.
Expansion and optimization of sales channels
       With the rapid development of e-commerce platforms and the rise of new retail models, the sales channels of premixed wine will continue to expand and optimize. The integrated online and offline sales model will provide a broader market space for pre-mixed wines and improve the market coverage and sales efficiency of the products.

4、Investment risks and challenges

Market competition intensifies
      As the potential of the pre-mixed wine market is gradually being tapped, more and more companies will enter the field and the market competition will become more intense. New entrants may compete for market share through price wars, advertising and marketing, leading to a squeeze on industry profit margins.
Uncertainty of policies and regulations
      The alcoholic beverage industry is strictly regulated by national policies and regulations, such as tax policies, quality standards and advertising. Changes in policies and regulations may adversely affect the production and operation and marketing of premixed wine enterprises.
Fluctuation of raw material prices
      The production of premixed wines requires a large number of raw materials, such as alcohol, fruit juices and spices. Fluctuations in the prices of raw materials may affect the production costs and profit level of enterprises.
Rapid changes in consumer demand
      Consumers' tastes and needs change rapidly, which may lead to loss of market share if the enterprise fails to capture market dynamics in time and launch new products that meet consumers' needs.

5、investment advice

Focus on companies with brand advantages
      When investing in pre-mixed wine companies, priority should be given to companies with brand advantages. Enterprises with high brand awareness and good market reputation tend to have stronger market competitiveness and consumer loyalty, and can stand out in the fierce market competition. Examine product innovation ability
      Choose to invest in companies with strong product innovation capabilities. Enterprises that are able to continuously introduce new flavors, new packaging and new marketing concepts are more likely to meet diversified consumer needs and lead the market trend. Evaluate Channel Expansion Capability
      Good sales channels are the key to successfully bringing a product to market. Investors should pay attention to a company's ability to expand channels, including its partnership with distributors, and the layout and optimization of online and offline channels. Focus on the risk management ability of the enterprise
      In the face of market competition, changes in policies and regulations, and fluctuations in raw material prices, the risk management ability of enterprises is crucial. Investors should assess the enterprise's risk response strategy and internal control mechanism to ensure that the enterprise can develop steadily in the complex market environment.

6、Advantages of choosing us in Gatong for the pre-mixed wine industry

Gatorade Supply Chain has the following advantages, which will help you develop the market for your own ready-to-drink (RTD) wines:
      Quality of products: The winery has professional sparkling wine fermentation equipment and production technology, for example, it adopts the same “tank fermentation method” as that of Italian Prosecco to make Moscato sparkling wine, which ensures the quality of its products.
      Diversified products: The winery not only offers Moscato sparkling wine, but also Gatton sparkling wine, Gatton rosé sparkling wine and Gatton fruit storm series sparkling wine, which can satisfy the needs of different consumers' tastes.
      Advantages of the production area: Located in Penglai, Shandong Province, the production area has the “3S” qualities suitable for grape growth - sun, sand and sea, and belongs to the National Grapevine Standardized Planting Demonstration Area, which provides good conditions for grape cultivation and wine production. It also belongs to the national model area for standardized grape planting, which provides good conditions for grape planting and wine production.
      Brand building: it has a clear brand concept, and has shaped its brand image by supporting China's wine education program, etc., which has increased the brand's popularity and influence.
      Innovative ability: constantly launching new packaging, its simple and distinctive packaging style is well received and able to attract consumers' attention.
      Industry experience and resources: having brand consultants to help can be a good match with related organizations, which helps to expand market channels and resources.

      To summarize, although the Chinese premixed wine (RTD) market is currently yet to be developed, it has a promising future investment outlook, driven by factors such as consumption upgrading, the rise of the younger generation of consumers and the popularization of the concept of healthy drinking. However, investors should also fully recognize the risks and challenges that may be faced during the development of the industry, make investment decisions cautiously, and select companies with core competitiveness and good development potential for investment in order to share the dividends of the future development of the pre-mixed wine industry.