Ready-to-Drink Coffee Market

Ready-to-Drink Coffee Market Size Analysis

According to a research survey conducted by ChemView Consulting, in 2022, the Global Ready-to-Drink Coffee Market was worth US$ 26,400.0 Mn and is expected to grow at a CAGR of 8.2% over the forecast period. The market is expected to hit US$ 49,600.0 Mn by 2030 end.

The global demand for ready-to-drink drinks has risen dramatically in recent years. The international adoption of a fast-paced lifestyle is driving up the market. Coffee is one of the most widely consumed beverages globally, and demand for ready-to-drink Coffee has grown significantly in recent years.

Market Dynamic

URBANIZATION AND CHANGING CONSUMER PREFERENCES DRIVE THE MARKET

The ready-to-drink coffee industry is influenced by increasing urbanization, hectic lives, and altering customer tastes. Aside from the convenience of grab-and-go, ready-to-drink Coffee is available in various kinds and flavors, giving customers options depending on their likes, preferences, culture, and requirements.

It is also seen as a superior substitute for carbonated beverages, related to health hazards such as obesity and hypertension. Because of its antioxidant properties and low-calorie content, ready-to-drink Coffee is gaining popularity as a fast energy source.

Ready-to-drink Coffee is another functional beverage that has been proved to offer health benefits. Growing obesity rates among children and adults, poor eating habits, hectic lifestyles, and demanding work schedules drive consumers toward healthier convenience food options.

HIGH AGRICULTURAL COSTS HAMPER THE MARKET GROWTH

Unpredictable rainfall and rising agricultural input costs have increased the cost of raw materials, raising the price of the finished product. One of the key impediments to market expansion is the greater cost of RTD Coffee compared to regular hot and ground Coffee. Furthermore, common hot coffee preparation procedures might limit market development.

NEW INNOVATIONS AND PRODUCT RELEASES OPEN UP AMPLE OPPORTUNITIES FOR THE MARKET

The ready-to-drink coffee industry is predicted to rise soon due to significant businesses’ increased product launches and a higher emphasis on product innovation. Because of the growing popularity of healthy living habits, producers are gaining a bigger consumer base by including healthy ingredients in ready-to-drink Coffee. Several large firms are attempting to develop items to help them fulfill the increasing demand for health-friendly products.

Market Segments Covered in Report

By Product:

• Ginseng
• Vitamin B
• Taurine
• Guarana
• Yerba Mate
• Acai Berry

By Additives:

• Flavors
• Artificial Sweeteners
• Acidulants
• Nutraceuticals
• Preservatives
• Others

By Packaging:

• Glass Bottle
• Canned
• PET Bottle
• Aseptic

By Price:

• Premium
• Regular
• Popular Priced
• Fountain
• Super Premium

By Distribution Channel:

• On-trade
  • Independent Retailers
  • Supermarkets/Hypermarkets
  • Convenience Stores
  • Others
• On-trade
  • Food Service
  • Vending

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why is PET bottle packaging of  Ready-to-Drink Coffee projected to have the highest CAGR?

In 2021, the PET bottles category led the market, accounting for 34.0% worldwide industry sales. The ease of handling, along with the low production costs, is driving the rising demand for this sort of packaging. Furthermore, because PET bottles can be molded in various sizes and forms and made in multiple colors, many producers use this packaging style.

Which distribution channel segment is expected to dominate during the forecast period?

The hypermarket/supermarket category is predicted to dominate the worldwide ready-to-drink coffee market. It is due to a well-established hypermarket/supermarket supply chain that provides a wide availability of ready-to-drink Coffee.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• The Asia Pacific is likely to retain its dominance in the ready-to-drink coffee market during the forecast period with a market share of 40.0%. Japan is expected to have a significant market share in the next years. The presence of several important local producers in various nations fosters regional market growth. The region’s growing population will also substantially impact the expansion of the regional ready-to-drink coffee industry.
• North America is predicted to increase moderately, with the United States and Canada leading the way. Higher consumer buying power, more wellness awareness, and rising acceptance of organically or naturally grown food and beverages over carbonated soft drinks drive regional market expansion.

Competition Analysis

Companies in the ready-to-drink coffee industry are shifting gears by developing and launching premium solutions that not only increase earnings but also provide a more engaging and pleasurable coffee-drinking experience.

Manufacturers in the ready-to-drink coffee industry are experimenting with product composition to give their clients a more individualized beverage consumption experience. On the other hand, the major companies are trying to increase their distribution networks to cement their market position in the ready-to-drink coffee industry.

Some of the key developments that have taken place in the Ready-to-Drink Coffee Market include:

• In February 2020, Starbucks and PepsiCo Inc. will release Starbucks Nitro Cold Brew cans that are ready to drink. The Nitrogen-infused beverages are available in three flavors: dark caramel, vanilla, sweet cream, and black cherry.
• In march 2021, J.M. Smucker Co. and JDE Peet established a strategic agreement in which JDE Peet would provide product research, manufacturing, and food service equipment innovation to the Smucker Away From Home liquid coffee business.

A list of some of the key suppliers present in the market are:

• The Coca-Cola Company
• Nestle S.A.
• JAB Holding Company
• Asahi Group Holdings, Ltd.
• McDonald’s Corporation
• Danone S.A.
• Dunkin’ Brands Group, Inc.
• Suntory Beverage & Food
• Lotte Chilsung Beverage Co. Ltd.
• Pepper Snappel Group.
• Starbucks
• Unilever
• Ajinomoto General Foods Inc.
• Monster Beverage Co.

Global Ready-to-Drink Coffee Market 2022-2030: Report Coverage and Highlights

• Assessment of the historical and current market size (2017-2021), market projections (2022-2030), and its contribution to the parent market
• Key drivers, restraints, opportunities, and key emerging trends impacting market growth
• Predictions on critical supply, demand, and technological trends and changes in consumer behavior
• Value chain analysis (list of manufacturers, distributors, end-users, average profitability margins, etc.)
• Segment-wise, country-wise, and region-wise market analysis
• Competition mapping, market share analysis, key strategies adopted by top players, and competitive tactical intelligence
• Key product innovations and regulatory framework
• Covid-19 impact on the market and how to navigate
• Strategic market analysis and recommendations on crucial winning strategies