Ready-To-Drink Coffee Market to Grow by USD 14.92 Billion from 2024-2028, as Demand for On-the-Go Refreshments Rises with AI-Driven Market Transformation - Technavio

NEW YORK , Nov. 7, 2024 /PRNewswire/ -- Report with the AI impact on market trends - The global ready to drink (RTD) coffee market size is estimated to grow by USD 14.92 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 8.89% during the forecast period. Rising demand for on-the-go refreshments is driving market growth, with a trend towards growing number of product innovations. However, regulatory compliance associated with rtd products poses a challenge.Key market players include Arla Foods amba, Asahi Group Holdings Ltd., Bulletproof 360 Inc., Califia Farms LLC, Campbell Soup Co., Caribou Coffee Operating Co. Inc., Danone SA, Heartland Food Products Group LLC, Illycaffe Spa, Inspire Brands Inc., Keurig Dr Pepper Inc., Lotte Corp., McDonald Corp., Nestle SA, PepsiCo Inc., Restaurant Brands International Inc., Starbucks Corp., Suntory Holdings Ltd., The Coca Cola Co., and The J.M Smucker Co..

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Key Market Trends Fueling Growth

The ready-to-drink (Rtd) coffee market is witnessing an increase in product innovations, with major vendors introducing new items to capture a larger market share. For instance, in September 2022, Sinopecs Easy Joy and TH International Limited launched two co-branded RTD coffee products in China. In May 2022, Sleepy Owl released ready-to-drink cold coffee cans, expanding its product line. Lavazza introduced its RTD coffee product in the US market in April 2022. Danone's STok Cold Brew and Silk's plant-based ready-to-drink latte flavors are other notable product launches in February 2020. These innovations will contribute to the growth of the global RTD coffee market in the forecast period. 

The Ready-to-Drink (RTD) coffee market is booming, with mid-range and premium options leading the charge. Consumers prefer bottles, cans, and carton packaging for their convenience. Flavors like Vanilla, Mocha, and Caramel are popular choices. Store-based retailing and e-commerce platforms dominate sales, but obesity rates raise concerns. Energy boost, nutrients, vitamins, natural ingredients, antioxidants, green tea extract, and adaptogens are key selling points. Inventory management is crucial for businesses in the RTD coffee and tea industry. RTD coffee is growing in the café culture, competing with carbonated beverages and energy drinks. Offices, shops, restaurants, and even coffee drinkers on-the-go are embracing this trend. Cold brew, snap chilled coffee, and sparkling canned coffee are gaining traction in the energy drinks space. 

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Market Challenges

• The global Ready To Drink (Rtd) coffee market faces significant regulatory challenges due to various food safety, labeling, ingredient specifications, and manufacturing practices regulations. Compliance with these regulations is essential to ensure product safety, protect consumer health, and maintain market integrity. Food safety regulations mandate strict hygiene practices, HACCP systems, and sanitation standards for handling, processing, and storing Rtd coffee products. Labeling regulations require accurate information on product ingredients, nutritional values, allergen declarations, and health risks. Ingredient specifications may limit or regulate the use of certain additives, flavorings, sweeteners, or preservatives. Good Manufacturing Practices (GMP) provide guidelines for facility design, equipment maintenance, process control, and employee training to prevent contamination and maintain overall production quality. Ensuring regulatory compliance is crucial for the growth of the global Rtd coffee market during the forecast period.
• The Ready-to-Drink (RTD) coffee market is growing rapidly, with café culture inspiring consumers to enjoy their favorite beverage on-the-go. However, competition from carbonated beverages and energy drinks poses a challenge. Coffee drinkers, especially millennials and Gen Z, prefer convenience. RTD coffee comes in various forms like cold brew, snap chilled, and sparkling canned. Packaging types include aseptic packages, glass bottles, metal cans, and PET bottles. Coffee beans are essential agricultural inputs, but price fluctuations impact costs. Mass merchandisers and convenience stores, including gas stations, dominate off-trade sales. On-trade sales occur in offices, shops, restaurants, and cafes. RTD tea and other beverages like sports drinks, juices, and carbonated soft drinks are competitors. Coffee's caffeine content and health benefits are advantages, but organic and natural options cater to health-conscious consumers. Economical pricing is crucial to attract the elderly population. The market faces challenges in maintaining product freshness and ensuring consistent quality. Overall, the RTD coffee market's growth depends on continuous innovation and catering to diverse consumer preferences.

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Segment Overview 

This ready to drink (rtd) coffee market report extensively covers market segmentation by

1. Packaging 
• 1.1 Glass bottled
• 1.2 Canned
• 1.3 Others
2. Distribution Channel
• 2.1 Offline
• 2.2 Online
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Glass bottled- The Ready-to-Drink coffee market is experiencing significant growth due to its convenience and portability. Consumers value the ease of preparing and consuming coffee on-the-go. Major players in the industry are investing in product innovation and expansion to meet this demand. Brands offer various flavors and sizes to cater to diverse preferences. The market is competitive, with companies focusing on pricing strategies and distribution networks to gain market share. Overall, the Ready-to-Drink coffee market is a thriving business sector that continues to attract investors and consumers alike.

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Research Analysis

Ready-to-Drink (Rtd) coffee has gained significant popularity in recent years, especially among the busy coffee drinkers who value convenience. This market segment includes various types of coffee beverages, such as cold brew coffee and iced coffee, available in different packaging types like aseptic packages, glass bottles, metal cans, and PET bottles. Rtd coffee caters to diverse consumer preferences, ranging from economical to premium, and natural to organic. It competes with other beverage categories, including cafe culture, carbonated beverages, and energy drinks, in the off-trade and on-trade sectors. Coffee latte and black coffee are popular choices, with Rtd coffee offering the same taste and experience as traditional coffee but with added convenience. The Rtd coffee market continues to evolve, offering consumers a wide range of options to suit their lifestyles and preferences.

Market Research Overview

Ready-to-Drink (Rtd) coffee has become a significant trend in the beverage industry, appealing to various demographics from millennials to the elderly population. Rtd coffee offers the convenience of café culture without the need for brewing equipment or time. It competes with carbonated beverages, energy drinks, and RTD tea in the beverage space. Coffee drinkers can choose from various types, including cold brew, snap chilled coffee, and sparkling canned coffee. Rtd coffee caters to diverse markets, from offices and shops to restaurants. Its availability in various packaging types, such as aseptic packages, glass bottles, metal cans, and PET bottles, makes it accessible through off-trade and on-trade channels. Rtd coffee comes in various flavors like vanilla, mocha, and caramel, catering to economical, mid-range, and premium markets. Its appeal extends beyond traditional coffee drinkers, with Gen Z consumers seeking energy boost and health benefits. Rtd coffee production involves agricultural inputs, including coffee beans, and various processing methods. It faces competition from soft drinks, juices, sports drinks, and ready-to-drink tea. Coffee latte and black coffee are popular choices, with natural, conventional, organic, and adaptogen-infused options available. Rtd coffee's inventory management is crucial due to its perishable nature and high demand. It's available through store-based retailing and e-commerce platforms. Obesity rates and health concerns have led to an increased focus on nutrients, vitamins, and natural ingredients in Rtd coffee, making it a dynamic and evolving market.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Packaging
• Glass Bottled
• Canned
• Others
• Distribution Channel
• Offline
• Online
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio