RTD Coffee Market with a 9.1% CAGR

The global RTD coffee market depicts a fragmented and competitive landscape. The market is witnessing emergence of several small players, who are increasing adoption with new tastes and flavors. Additionally, the global RTD coffee market is witnessing increased fragmentation due to expansion in emerging markets, reports Transparency Market Research (TMR). Some key players in the RTD coffee market are Starbucks Corporation, Nestlé S.A., The Coca-Cola Company,  PepsiCo Inc., The J.M. Smucker Company, McDonald’s Corp., Monster Beverage Co., Suntory Holdings Limited.

The global RTD coffee market players continue to introduce new products with innovation to attract new buyers. Coffee drink continues to attract young customers and their open attitude towards new worldviews is favorable to growth. Additionally, trends such as sustainability also promise new opportunities for players in the RTD coffee market. Customers continue to demand sustainable coffee products, however, very few display a keen knowledge of sustainability.

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Due to robust trends of innovation, the RTD coffee market is expected to grow at a notable 8.0% CAGR during 2018-2026. Additionally, the market is expected to arise from an already healthy evaluation of US$ 9,141.7 Mn in 2018.

The main product driving the RTD coffee market will be the cold brew ready-to-drink coffee. This segment will rise at 9.4% CAGR during 2018-2026. Due to widespread availability of drinks such as mocha, cappuccino, and espresso, the RTD coffee market will register a healthy growth in the near future. Moreover, region wise, the Asia Pacific region will register the highest growth, with a 9.1% CAGR. Japan is a key market to watch out in the near future.


Growing Demand and Large Agricultural Output to Drive Robust Growth 

According to United States Department of Agriculture, the world coffee production during 2018/19 will reach the record heights of 174.5 million bags. The output is expected to exceed its all-time high demand of 163.6 million bags. Due to large agricultural output, predictions are in the air that there will be a 10% drop in prices, further fuelling demand. Furthermore, coffee crop, Arabica will enter its biennial production cycle, and Robusta is rebounding back in demand. According to the United States Department of Agriculture, the ending stocks are projected to rebound to 37.1 million, increasing by 7.1 million. Growing demand for coffee, a great year for agricultural produce, and rebounding in old stocks are expected to drive major growth for the RTD coffee market.

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European Union and United States are both expected to register an increase in their imports in the near future. While Europe is expected to increase its import by 1.1 million bags to 48.5 million, United States is expected to witness a 2.1 million bags increase to 26.5 million.

E-Commerce to Drive Expansion of the RTD Coffee Market

E-commerce companies like Amazon are introducing new products into completely new markets every day. This is a boon for the RTD coffee market. Coffee has just started gaining traction in emerging markets of Asia Pacific. Coffee products like mocha and espresso are still not part of daily habits for many cultures, which are still accustomed to tea. On the other hand, RTD coffee products offer a convenient way to gain some energy in hectic work environments. Coffee provides a quick shot of mental boost, thanks to Caffeine. Additionally, due to growing competition between e-commerce giants to capture large market share, they also provide extremely cost-effective products. The cost-effectiveness of products, growing demand for coffee, and growing popularity of coffee among young people are likely to fuel expansion for the RTD coffee market.



Information provided in this review is obtained from a TMR report, titled, “RTD Coffee Market (Product Type – Café Latte, Cappuccino, Espresso, Café Mocha, Flat White, Cold Brew Coffee, Decaffeinated, Others; Flavor – Regular, Flavored; Packaging – Canned, Glass Bottles, PET Bottles, Tetra Packs, Others; Package Volume – 101 -250 ml, 251 -400 ml, 401 -550 ml, 551 ml and Above; Distribution Channel – Food Service, Modern Stores, Online Retail) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 – 2026”.