Global Ready-to-Drink (RTD) Coffee Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the global Ready-to-Drink (RTD) Coffee Market is expected to record a CAGR of 7.8% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 28,198.5 Million. By 2033, the valuation is anticipated to reach USD 55,436.5 Million.

Summary of the World Coffee Consumption

Source: According to the International Coffee Organization

The Ready-to-Drink (RTD) Coffee market is a rapidly growing segment of the beverage industry characterized by pre-packaged coffee beverages that are ready for immediate consumption without the need for brewing or additional preparation.

RTD coffees come in various formats such as bottled, canned, or carton packaging and offer a convenient solution for consumers seeking quick and easy access to their favourite coffee drinks.

The market is driven by factors like busy lifestyles, increasing coffee consumption, product innovation, and expanding distribution channels. RTD coffee brands often focus on flavor variety, convenience, and catering to health-conscious consumer preferences.

Ready-to-Drink (RTD) Coffee Market – Significant Growth Factors

The Ready-to-Drink (RTD) Coffee Market presents significant growth opportunities due to several factors:

• Convenience and On-the-Go Lifestyles: The increasing demand for convenient beverage options driven by busy lifestyles and on-the-go consumption habits propels the growth of the RTD coffee market.

• Product Innovation: Continuous innovation in flavors, formulations, and packaging formats by RTD coffee brands attracts consumers and drives market expansion.

• Health and Wellness Trends: Rising consumer interest in healthier beverage choices, such as low-sugar or functional RTD coffee products, contributes to market growth as brands respond with healthier alternatives.

• Expanding Distribution Channels: The availability of RTD coffee products across diverse distribution channels, including supermarkets, convenience stores, cafes, and online platforms, enhances accessibility and drives market penetration.

• Global Expansion: With increasing demand for RTD coffee observed globally, there’s an opportunity for brands to expand into new geographic markets and tap into emerging consumer segments, particularly in regions with growing coffee consumption.

• Premiumization and Differentiation: There’s an opportunity for RTD coffee brands to capitalize on premiumization trends by offering high-quality, artisanal products with unique flavors, premium ingredients, and sophisticated packaging to cater to discerning consumers willing to pay a premium for elevated coffee experiences.

Ready-to-Drink (RTD) Coffee Market – Mergers and Acquisitions

The Ready-to-Drink (RTD) Coffee Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Ready-to-Drink (RTD) Coffee Market include:

• In 2022, In China, convenience store chain Sinopec’s Easy Joy and TH International Limited, operator of Tim Hortons coffee shops, have collaborated to launch two co-branded ready-to-drink coffee products, leveraging their respective strengths in retail and coffee expertise.

• In 2022, New Delhi-based startup Sleepy Owl expanded its product line with the launch of ready-to-drink cold coffee cans, offering caramel, hazelnut, and classic flavors. This move enhances brand accessibility and caters to diverse consumer preferences.

• In 2021, abCoffee, India’s first tech-enabled specialty coffee brand, announced plans to expand beyond Mumbai. By offering reasonably priced specialty coffee, abCoffee aims to democratize the industry, making high-quality coffee accessible to consumers across India.

These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Ready-to-Drink (RTD) Coffee Market. The trend is expected to continue as companies seek a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Ready-to-Drink (RTD) Coffee Market – Significant Threats

The Ready-to-Drink (RTD) Coffee Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Competition from Other Beverage Categories: RTD coffee faces competition from other beverage categories such as energy drinks, tea, and functional beverages, which offer similar convenience and appeal to overlapping consumer segments. This competition can pose a threat to RTD coffee market share and growth.

• Health Concerns and Negative Perceptions: Increasing awareness of the health impacts of high sugar and caffeine consumption could pose a threat to the RTD coffee market. Negative perceptions regarding the healthiness of RTD coffee products, particularly those with high sugar content, may deter health-conscious consumers and lead to decreased demand.

• Supply Chain Disruptions: The RTD coffee market is vulnerable to supply chain disruptions caused by factors such as natural disasters, geopolitical tensions, and global pandemics. Disruptions in the supply chain, including shortages of coffee beans or packaging materials, could lead to production delays, increased costs, and reduced availability of RTD coffee products.

• Price Sensitivity: Price sensitivity among consumers, particularly in economically challenging times, can pose a threat to the RTD coffee market. As consumers prioritize value for money, they may opt for cheaper alternatives or reduce discretionary spending on RTD coffee products, impacting sales and revenue for manufacturers.

• Regulatory Changes and Labeling Requirements: Evolving regulatory landscapes, including changes in food safety regulations, labeling requirements, and taxation policies, can pose challenges for RTD coffee manufacturers. Compliance with new regulations may require reformulation of products or adjustments to packaging, leading to increased costs and operational complexities.

Category-Wise Insights:

By Packaging Type

• Bottled/Canned RTD Coffee: Bottled/Canned RTD Coffee refers to pre-packaged coffee beverages in bottles or cans, ready for immediate consumption. Trends in this segment include the introduction of premium and artisanal flavors, sustainable packaging solutions to reduce environmental impact, and the incorporation of functional ingredients such as plant-based milk and superfoods to appeal to health-conscious consumers.

• RTD Coffee in Tetra Packs: RTD Coffee in Tetra Packs are convenient coffee beverages packaged in Tetra Pak cartons. Trends in this segment include the rise of single-serve Tetra Pak options for on-the-go consumption, the introduction of dairy-free and plant-based alternatives to cater to diverse dietary preferences, and the use of Tetra Pak packaging innovations to enhance product freshness and shelf-life.

• RTD Coffee Concentrates: RTD Coffee Concentrates are concentrated forms of coffee that can be diluted with water or milk before consumption. Trends in this segment include the development of cold brew concentrates for a smoother and richer flavor profile, the introduction of single-serve concentrate packets for portability and convenience, and the incorporation of specialty coffee beans and blends to elevate taste and aroma.

• Others: The “Others” category in the RTD Coffee market encompasses various packaging types such as pouches, cartons, and unique formats. Trends in this segment include the emergence of nitrogen-infused coffee products for a creamier texture and longer-lasting freshness, the introduction of customizable DIY coffee kits for home brewing enthusiasts, and the expansion of RTD coffee offerings into non-traditional formats such as gels, shots, and powders for versatility and innovation.

By Flavor

• Classic: Classic RTD coffee flavors encompass traditional coffee varieties like black coffee, espresso, and latte. Despite the rise of flavored and specialty options, classic flavors remain popular among consumers seeking the authentic taste of coffee. Trends include a resurgence of interest in cold brew and nitro-infused varieties, offering a smoother and more nuanced flavor profile to cater to discerning coffee enthusiasts.

• Flavored: Flavored RTD coffee varieties feature added flavors like vanilla, caramel, mocha, and hazelnut, appealing to consumers seeking novelty and variety in their coffee beverages. Trends include the introduction of innovative flavor combinations, seasonal offerings, and limited-edition releases to capture consumer interest and drive sales. Additionally, there’s a growing demand for natural and organic flavorings to align with health-conscious consumer preferences.

• Specialty: Specialty RTD coffee encompasses unique or premium offerings such as single-origin coffees, cold brews, and artisanal blends, targeting discerning consumers willing to pay a premium for quality and exclusivity. Trends include the expansion of specialty coffee cafes into the RTD market, offering high-quality, barista-crafted beverages in convenient packaging formats. There’s also a focus on sustainability and ethical sourcing practices to appeal to socially conscious consumers.

By Product Type

• Cold Brew Coffee: Cold brew coffee is a type of RTD coffee made by steeping coffee grounds in cold water for an extended period, resulting in a smooth, less acidic beverage. Trends in the RTD coffee market for cold brew include increasing popularity due to its smoother taste, growing demand for innovative flavor variations, and the introduction of premium cold brew offerings with specialty beans and unique brewing techniques.

• Other RTD Coffee: Other RTD coffee products encompass a wide range of pre-packaged coffee beverages, including traditionally brewed coffee, espresso-based drinks, and flavored coffee concoctions. In the RTD coffee market, trends for other varieties include a focus on convenience, diverse flavor options, and health-conscious formulations such as low-sugar or functional additives to cater to evolving consumer preferences and lifestyles.

By Distribution Channel

• Supermarket/Hypermarkets: Supermarkets and hypermarkets are major distribution channels for RTD coffee, offering a wide selection of brands and flavors to consumers. The trend in this segment includes increasing shelf space dedicated to RTD coffee products, strategic placement near checkout counters to encourage impulse purchases, and the introduction of private label RTD coffee brands by retailers to capture market share and meet consumer demand for affordable options.

• Specialist Stores: Specialist stores such as convenience stores, gas stations, and coffee shops provide convenient access to RTD coffee for consumers on the go. The trend in this segment includes the expansion of RTD coffee offerings in specialist stores, partnerships between RTD coffee brands and specialty retailers to enhance visibility and distribution, and the introduction of premium RTD coffee products targeting discerning consumers seeking unique flavors and experiences.

• Online Retail: Online retail platforms have emerged as a popular distribution channel for RTD coffee, offering convenience and accessibility to a wide range of consumers. The trend in this segment includes the proliferation of e-commerce platforms specializing in beverages, personalized recommendations based on consumer preferences, and the rise of subscription services offering regular deliveries of RTD coffee products, catering to the growing demand for hassle-free shopping experiences and home delivery convenience.

• Other: Other distribution channels for RTD coffee include vending machines, food service outlets, and direct-to-consumer channels. The trend in this segment includes the deployment of RTD coffee vending machines in high-traffic locations such as airports and office buildings, partnerships between RTD coffee brands and food service providers to offer RTD coffee as part of meal deals or catering services, and the expansion of direct-to-consumer sales channels through brand websites and social media platforms, allowing RTD coffee brands to engage directly with consumers and drive sales through targeted marketing efforts.

Report Scope

Ready-to-Drink (RTD) Coffee Market – Regional Analysis

The Ready-to-Drink (RTD) Coffee Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: In North America, the Ready-to-Drink (RTD) Coffee market is driven by trends such as the rise of premium and artisanal RTD coffee products, increasing demand for cold brew variants, and the popularity of functional RTD coffee beverages with added health benefits. Consumers in this region are also embracing sustainable packaging options and seeking out innovative flavors and formulations, driving growth in the market.

• Europe: In Europe, the RTD Coffee market is characterized by trends such as the growing preference for RTD coffee products with low sugar content and natural ingredients, reflecting consumer demand for healthier beverage options. There’s also a trend towards single-origin and ethically sourced RTD coffee products, driven by consumer interest in sustainability and transparency in the supply chain. Additionally, the rise of premium RTD coffee brands and café-style offerings further contributes to market growth in Europe.

• Asia-Pacific: In the Asia-Pacific region, the RTD Coffee market is experiencing rapid growth fueled by trends such as the increasing popularity of RTD coffee among younger demographics, urbanization, and changing lifestyles. The market is also witnessing a surge in demand for RTD coffee products with unique flavors and functional ingredients tailored to local tastes and preferences. E-commerce platforms are playing a significant role in driving sales of RTD coffee in this region, offering convenience and accessibility to a tech-savvy consumer base.

• LAMEA (Latin America, Middle East, and Africa): In the LAMEA region, the RTD Coffee market is influenced by trends such as the rising coffee culture, particularly in countries like Brazil and Colombia, where coffee consumption is deeply ingrained in the culture. There’s a growing demand for RTD coffee products that celebrate regional coffee traditions and flavors. Additionally, the market is witnessing increased investments in marketing and distribution channels to expand RTD coffee availability in urban centers and emerging markets across the region.

Competitive Landscape – Ready-to-Drink (RTD) Coffee Market

The Ready-to-Drink (RTD) Coffee Market is highly competitive, with a large number of manufacturers and retailers operating globally. Some of the key players in the market include:

• The Coca-Cola Company
• PepsiCo Inc.
• Nestlé S.A.
• Starbucks Corporation
• Keurig Dr Pepper Inc.
• Danone S.A.
• Illycaffè S.p.A.
• Monster Beverage Corporation
• UCC Holdings Co. Ltd.
• Lavazza Group
• Asahi Group Holdings Ltd.
• Strauss Group Ltd.
• Suntory Beverage & Food Limited
• Asahi Soft Drinks Co. Ltd.
• AJE Group
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

New players entering the Ready-to-Drink (RTD) Coffee market often adopt innovation and development strategies to differentiate themselves and capture market share. These players may focus on introducing unique flavor profiles, leveraging sustainable packaging solutions, and targeting niche consumer segments to establish their presence in the competitive landscape.

Meanwhile, key players such as The Coca-Cola Company, PepsiCo, and Nestlé dominate the market through extensive distribution networks, strong brand recognition, and continuous product innovation. These companies leverage their resources and market presence to introduce new RTD coffee variants, expand into emerging markets, and maintain market leadership positions.

The Ready-to-Drink (RTD) Coffee Market is segmented as follows:

By Packaging Type

• Bottled/Canned RTD Coffee
• RTD Coffee in Tetra Packs
• RTD Coffee Concentrates
• Others

By Flavour

• Classic
• Flavored
• Specialty

By Product Type

• Cold Brew Coffee
• Other RTD Coffee

By Distribution Channel

• Supermarket/Hypermarkets
• Specialist Stores
• Online Retail
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America