The global market for ready-to-drink coffee is expected to grow at a CAGR of 7.4% by volume and 8.0% by value over the forecast period 2018-2026
As the name suggests, ready-to-drink coffee is readymade packaged coffee drinks that are available in the market for direct consumption. The convenience and instant nature offered by ready-to-drink coffee are some of the major drivers for its market. Growing urbanization, busy lifestyles, and changing consumer preferences are some of the key factors affecting the ready-to-drink coffee market. In addition to the grab-and-go convenience provided by ready-to-drink coffee, it also comes in diverse types and flavours, thus, giving consumers a variety to choose from according to their tastes, likings, culture, and needs. The nature of ready-to-drink coffee makes it a profoundly trend-driven market, and has a lucrative potential to grow in the coming years. Further, the ready-to-drink coffee is available in a variety of packaging, which include cans, tetra packs, PET bottles, and glass bottles offered in diverse package volumes, making it easily accessible and handy for consumers to carry anywhere. Another driving factor for ready-to-drink coffee market is the increasing socialization and social gatherings amongst various age groups of people, especially the millennial population, which has eventually increased the demand and need for easily available and portable ready-to-drink coffee.
Growing demand for a healthier substitute to carbonated drinks driving the ready-to-drink coffee market
The rising awareness for health and wellness amongst consumers, worldwide, due to the rising influence of media, especially through various e-Commerce platforms, educational health programs, and activities by governments and food departments, and through various reports and articles published by global health organizations and institutions such as the World Health Organization, has led to a change in the food habits and preferences of consumers. Thus, consumers, these days, seek healthier substitutes to carbonated soft drinks, such as ready-to-drink coffee, which is less harmful and easily available.
Instant nature and familiarity in taste contributing to the growth of the ready-to-drink coffee market by every age group
Coffee has high consumption and popularity in every region due to its soothing and savory taste, rich smell, and caffeine content, and is consumed by almost every age group. The energy benefits provided by the ready-to-drink coffee is also luring in the elderly age groups due to their tea and coffee taste familiarity. In addition to this, with a rise in the working population and fast-moving lifestyles, consumers, these days, are opting for instant and easily accessible food and beverage supplements. 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 for 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.
Constant innovations and developments in the flavors and coffee types to flourish the demand for ready-to-drink coffee
There has been rapidly growing demand for flavours due to an increase in the number of consumers experimenting with food and beverages, and trying out new tastes and flavours. Thus, companies in the market constantly keep on offering and developing ready-to- drink coffees with new flavours, blends, and ingredients, catering and fulfilling the specific likings, regional tastes, and needs of consumers belonging to different regions.
Ready-to-Drink Coffee Market Analysis by Product Type
The cold brew ready-to-drink coffee segment is expected to be valued at US$ 2,432.6 Mn by 2026, and is projected to register a CAGR of 9.4% over the forecast period, owing to its growing widespread demand and trend, worldwide, followed by the espresso segment with an expected CAGR of 9.2% by 2026, and then the mocha segment. The decaffeinated ready-to-drink coffee segment also has high potential to grow, owing to the several health benefits that it offers.
Ready-to-Drink Coffee Market Analysis by Flavour
Flavoured ready-to-drink coffee is expected to remain the fastest-growing category over regular ready-to-drink coffee during the forecast period, growing at a CAGR of 8.5% as compared to the regular ready-to-drink coffee category that accounts for a CAGR of 6.4%, due to the changing taste preferences of consumers, and more number of consumers experimenting new product types and flavours.
Ready-to-Drink Coffee Market Analysis by Packaging
In the ready-to-drink coffee packaging segment, the canned packaging segment has the fastest growing estimated CAGR, with a market value of US$ 5,429.9 Mn by 2026, owing to its volume, handiness, and appearance, followed by the PET bottles segment with a forecasted market value of US$ 5,164.2 MN by 2026.
Ready-to-Drink Coffee Market Analysis by Package Volume
By volume, ready-to-drink coffee products falling in 100-250ml of package volume range are expected to show the highest growth, with a forecasted market share of 8.2% and market value of US$ 6,952.0 Mn by 2026, followed by the 251-500 ml range.
Ready-to-Drink Coffee Market Analysis by Distribution Channel
Distribution through e-Commerce is expected to remain the fastest growing distribution channel of ready-to-drink coffee during the forecast period, with a CAGR of 8.7%. This is attributed to growing technology and increasing number of consumers using the Internet and smartphones for shopping varied products such as groceries and fast moving consumer goods. Specialty stores and wholesale club stores are also prominent growing sub segments of modern stores in the distribution channel of ready-to-drink coffee.
Ready-to-Drink Coffee Market Analysis by Region
On the basis of region, the APAC region is projected to remain dominant in the ready-to-drink coffee market throughout the forecast period, with a forecasted CAGR of 9.1%, with Japan having the highest market share of ready-to-drink coffee in the current year.
This TMR report on the global ready-to-drink coffee market analyses the opportunities in the market, and presents the overall market outlook of the ready-to-drink coffee market, along with providing updates, ongoing and future trends, and valuable growth insights relating to various segments of the global ready-to-drink coffee market over a forecast period of 8 years from 2018–2026.
The primary objective of this report is to offer insights related to the key developments, takeaways, and opportunities in the global ready-to-drink coffee market that are gradually helping transform global businesses associated with the same. Along with the forthcoming opportunities, the report also highlights the existing opportunities in the global ready-to-drink coffee market, to equip the client with comprehensible and lucid decision-making insights. The report covers the various segments and performance parameters of the global ready-to-drink coffee market in terms of market value and volume.
To understand the consumption patterns in a more coherent way, and assess opportunities in the ready-to-drink coffee market, the market has been divided into six segments, namely, by product type, by flavor, by packaging, by package volume, by distribution channel, and by region. The report depicts the market outlook and dynamics of ready-to-drink coffee in five regions - North America, Latin America, Europe, APAC, and MEA. To understand the market growth of ready-to-drink coffee and expansion in a better way, various macroeconomic and microeconomic factors are taken into consideration, which include the GDP of countries, population, trade, per capita consumption, and many others. Along with the various factors taken into account, the production and consumption patterns of coffee in various regions are also studied, and insights have been drawn accordingly. The report also includes TMR’s analysis of the various drivers and restraints affecting the global growth of the ready-to-drink coffee market. Key trends observed across the value chain in the ready-to-drink coffee market are also included in the report. The market is studied from the supply as well as demand side, and is represented along with its value chain, to understand the various stages, starting from the extraction of raw materials to the reaching of the final product to the end consumers.
The key segments of the ready-to-drink coffee market are as follows:
Ready-to-Drink Coffee Market by Product Type
- Café Latte
- Caffe Mocha
- Flat White
- Cold Brew Coffee
Ready-to-Drink Coffee Market by Flavor
Ready-to-Drink Coffee Market by Packaging
- Glass Bottles
- PET Bottles
- Tetra Packs
Ready-to-Drink Coffee Market by Package volume
- 101 -250 ml
- 251 -400 ml
- 401 -550 ml
- 551 ml and Above
Ready-to-Drink Coffee Market by Distribution channel
- Food Service
- Modern Stores
- Supermarkets and Hypermarkets
- Convenience Stores
- Specialty Stores
- Wholesale club Stores
- Online Retail
Ready-to-Drink Coffee Market by Region
- North America
- Latin America
- Middle East & Africa
To understand the ready-to-drink coffee market in a crystal-clear way, and to analyse the latest developments, trends, demands, and opportunities in the ready-to-drink coffee market, various significant and key companies involved in the manufacturing and marketing of ready-to-drink coffee are studied, and are represented in an effectual way, drawing the insights related to their various target product offerings, revenue growth, market share, and recent developments in the competitive landscape section of the report.
Some of the market participants in the global ready-to-drink coffee market identified across the value chain include Nestlé S.A., Starbucks Corporation, PepsiCo Inc., The Coca-Cola Company, McDonald’s Corp., The J.M. Smucker Company, Suntory Holdings Limited, Monster Beverage Co., Keurig Dr Pepper, illycaffè S.p.A, Lotte Chilsung Beverage Co., Caribou Coffee Company, Inc, Asahi Group Holdings, Ltd., and Bulletproof 360, Inc., among others. A competitive dashboard is provided before the detailed competition analysis of the various market participants in the ready-to-drink coffee market, to compare the current industrial scenario in the ready-to-drink coffee market.
The report begins with the executive summary representing the overall ready-to-drink coffee market in a nutshell, mentioning the global CAGR of the market, along with each segment and their sub-segment’s individual share and CAGR. The section also talks about the overall ready-to-drink coffee market scenario and the different key strategies. This section is followed by a thorough, in-depth introduction of the market, along with the taxonomy of the market. Further, opportunity analysis is presented to showcase the growing opportunities in the ready-to-drink coffee market. Then, the market sizing is done while considering the base year in terms of value and volume. This forms the basis for forecasting how the ready-to-drink coffee market is anticipated to take shape in the near future. Given the characteristics of the market, TMR triangulates the data via different analysis based on supply side, demand side, and dynamics of the global ready-to-drink coffee market. Further, market share analysis, y-o-y growth of the market, and value and volume sales of various regions and segments is represented in graphical form. In this imperative world, along with the market share, y-o-y growth, and CAGR, we also provide pricing analysis along with market attractiveness, Market attractiveness is given for different segments of the ready-to-drink coffee market, such as product type, flavor, package volume, packaging, and distribution channel. To develop the market forecast, TMR conducted factor analysis to understand the impact of various forces/factors on the target market.
However, quantifying the market across the abovementioned segments is more a matter of quantifying expectations and identifying opportunities rather than rationalizing them after the forecast has been completed. The last section consists of the competition landscape, presenting a detailed analysis of the key companies involved in the market. Moreover, it is primarily designed to provide clients with an objective and detailed comparative assessment of key providers specific to a market segment. Report audiences can gain segment-specific manufacturer insights to identify and evaluate key competitors based on the in-depth assessment of their capabilities and success in the global ready-to-drink coffee marketplace.