Asia-Pacific Ready To Drink (Rtd) Coffee Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Asia-Pacific Ready To Drink (Rtd) Coffee Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Asia-Pacific ready-to-drink (RTD) coffee market is projected to record a CAGR of 3.5% during the forecast period (2022-2027).

COVID-19 affected the market, and governments imposed measures, like social distancing and lockdowns, in place, which hugely impacted cafés, micro-roasters, restaurants, and other out-of-home outlets. The current trend toward online shopping for at-home consumption is forcing retailers, roasters, and consumers to adapt to this new reality. Therefore, this factor is expected to increase the consumption of RTD coffee in the region.

The instant nature and convenience offered by RTD coffee are important drivers. The nature of the product makes it a highly trend-driven market, and as such, a certain element of innovation is constantly in demand.

The growth indicated a significant increase since 2012 due to rising economies, hectic work culture, busy lifestyles, and the growing trend of health consciousness among consumers. The increase in disposable income in the developing economies is another factor triggering the growth rate of the RTD coffee market in this region.

Packaging of all beverages by almost all major players has been made more attractive to increase the sales of their products. Also, packages in various quantities are made available for easy usage. Glass bottles and pet bottles are widely used around the world. Pet bottles are preferred more than the traditional glass bottles, as new technology enables these bottles to do more than just hold beverages. These bottles aid in improving the shelf life and preservation apart from being available in economic formats. Pet bottles are manufactured so that consumers can heat or cool the coffee, depending on their requirements. These hot/cool bottles come in handy ‘grab and go’ sizes and can be used conveniently. Products in bottled format can be consumed all at once or can be stored. Caps or lids over these bottles also play an important role as they preserve the freshness and aroma of the drinks.

Based on geography, the emerging markets of Asia-Pacific present a very high volume potential. Japan occupies the leading position here, followed by Australia, China, and India. Because of its large population and exponential growth of coffee consumption, it represents a huge potential market. The region is expected to witness to high growth rate during the forecast period. The increased RTD coffee consumption in China is largely owed to convenience and a malleable flavor profile. The rising disposable incomes in India increase the demand for convenience food, such as RTD coffee. The Indian RTD coffee market is majorly driven by strong demand from younger consumers amidst a thriving café culture. The market's major constraint is adapting to regional tastes and preferences. Japanese, where consumers are habituated to hot or freshly ground coffee, take considerable time and reluctance to adapt to the new tastes. Extensive marketing and the use of locally sourced products are essential in countering this perception.

The Asia-Pacific ready-to-drink (RTD) coffee market is fragmented with the presence of numerous players. The key players are using growth strategies, including mergers and acquisitions, expansion, new product development, and partnerships, to fuel market growth. There are several prominent players in this industry, such as Ajinomoto General Foods Inc., Asahi Group Holdings Ltd., Coco-Cola Company, Starbucks Corporation, Monster Beverage Co., PepsiCo Inc., Lotte Chilsung Beverage Co., Dunkin' Brands, Bulletproof 360, and Dr. Pepper Snapple Group, among others.

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