Ready-to-Drink (RTD) Coffee Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Ready-to-Drink (RTD) Coffee Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Ready-to-Drink (RTD) Coffee Market is projected to grow at a CAGR of 7.69% during the forecast period.

Key Highlights

• Health deterioration, due to busy lifestyles and insufficient exercise, along with increasing obese population, is a major reason behind the increasing number of individuals riding on the fitness fad. Ready-to-drink coffee, being an excellent source of instant energy is becoming popular amongst youngsters as well the middle-aged working population. In addition, the rise in the awareness of health and physical fitness has encouraged more youngsters to get involved in sports, gymming, and physical activities, in turn, soaring the need and demand for more quick energy supplements and drinks.
• With the trend for carbonated drinks declining, several forms of soft drinks flocking the market, and many coffee options entering the hot category, the RTD coffee market is expected to have a good take off.

Impact of COVID-19 on the Market:

Key Highlights

• Majority of coffee consumers are purchasing coffee via online delivery channels. Large number of consumers are ordering their coffee online, increasing the consumption of at-home coffee consumption, or are increasingly purchasing ready-to-drink coffee.
• The main coffee importing and consuming markets in Europe, North America, and Asia are in the middle of the COVID-19 crisis. Governments have imposed measures, like social distancing and lockdowns, in place, which have had a huge impact on 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 around the world.
• Experts believe that coffee consumption may not decline. However, there is likely to be a shift from out-of-home categories to more at-home categories and cheaper products (impacted by the reduced consumer income). Various online surveys have reported a growth in the daily consumption of coffee, owing to the growing at-home consumption.

Key Market TrendsBottled RTD Coffee Gaining Momentum

Packing of all beverages by almost all major players are made more attractive, so as 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 in such a way that consumers can either 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.

Increased Demand for RTD in Asia-Pacific region

Healthy eating and drinking is a major trend, which engages a major chunk of the global population. RTD coffee is also one of the functional drinks that is available with proven health benefits. Various types of RTD coffee are introduced in the market, to serve the vast consumer base spread globally. The growing obese population, unhealthy eating habits among children and adults, busy lifestyles, and tight work schedules are the factors driving consumers toward healthy alternatives in terms of convenience food.

The calorie-conscious consumer and the diabetic population are looking for alternatives to sugar in their drinks, which is increasing the rate of preference for antioxidant-enriched health drinks among them. Product innovation is one of the core strategies that escalated over the years. It is garnering interest among consumers. The latte flavored RTD coffee gained importance. Players, such as Nongfu Spring Co. Ltd, introduced a cold brew-flavored carbonated RTD coffee in 2019, becoming the first carbonated RTD brand in China. With the convenience factor associated with it, the market is gaining more prominence in the Asia-Pacific region.

Competitive Landscape

The global RTD coffee market is largely dominated by key players such as The Coca-Cola Company, Nestle SA, Suntory Beverage and Food, and Starbucks Corporation with a high global presence of their brands Nescafe, Starbucks, Dunkin’ Donuts, and Costa, among others. Further, by engaging the consumers with innovation and expansion strategies, the key players are capitalizing on the market revenue. Moreover, penetration by the key players with the product offering in the small pack size and sachets in the developing markets is further expected to fuel the market share of key brands in the developing regions.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Starbucks Corporation
Nestle SA
The Coca
Cola Company
Arla Foods
Lotte Corporation
JAB Holdings
High Brew Coffee Inc.
Asahi Group Holdings Ltd
La Colombe Torrefaction Inc.

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