NEW YORK, March 7, 2016 /PRNewswire/ -- The United States of America Ready to Drink (RTD) coffee market was valued at USD 1.425 billion in 2015, and is expected to grow at a CAGR of 2.8% and mature into a USD 1.634 billion market by 2020. It is a recently developed concept wherein the beverage is sold in a convenient, directly consumable form. The importance of these products, against the backdrop of modern-day lifestyle, can be understood in their market valuations, which often run into billions of dollars. The success of the RTD format is dependent on various complimentary and fundamental factors, such as a certain sense of cognitive connect with the products and their availability. Despite being marketed as a young and urban phenomenon, RTD consumers can be from almost all demographic segments.
The market is segmented based on ingredient type, packaging mode, sales channels and geography. The ingredients base covers many products such as Taurine, Guarana, Yerba Mate, Ginseng, Vitamin B and Acai Berry. The nature of the product offers scope for a much larger and innovative ingredient base. Convenience stores, supermarkets and mass sellers are the major sales and distribution networks. Considering the volume dependent nature of the market, availability of the products is a major market determinant. This factor is further amplified in the case of emerging countries, which lack a fully developed distribution network. The supermarket shelves and vending machines gain prominence in this regard. Both these access points make soft drink manufacturers, the ideal distribution partners and the dominant market players. This phenomenon can be clearly observed in the long-standing partnership between PepsiCo and Starbucks. Despite the portfolio strength of Starbucks, the distribution network offered by Pepsi is crucial for an adequate market penetration. This distribution related facet of the industry offers a significant challenge to new and small players.
The instant nature and convenience offered by RTD coffee are cited as important drivers. The nature of the product makes it a highly trend-driven market and as such a certain element of innovation is constantly in demand. These factors of perception make it a continuously evolving market in terms of flavors and presentation. Regarding the major access points, iced products with longer shelf life provide major opportunities, along with liquid coffee concentrates and frozen concentrates. The latter holds importance for bulk buyers, such as restaurants and offices. The major constrain for the market is in adapting to regional tastes and preferences. Specific regions, where consumers are habituated to hot or freshly ground coffee, take a considerable time and reluctance in adapting to the new tastes. Extensive marketing and use of locally sourced products are essential in countering this perception.
The major players of the region include Cargill, Starbucks Corporation, Asahi Group Holdings, Ajinomoto General Foods Inc.
SPECIALITIES OF THIS REPORT
The report will be useful in gaining an exhaustive understanding of the regional market. It will also be of assistance in providing a comprehensive analysis of the major trends, innovations and associated prospects for market growth over the coming half a decade
The report will be an ideal source material for industry consultants, manufacturers and other interested and allied parties to gain a critical insight into the factors driving and restraining the market, in addition to opportunities offered.
The report contains wide range of information about the leading market players and the major strategies adopted by them.
WHAT THE REPORT OFFERS
Market Definition along with identification of key drivers and restraints for the market.
Market analysis with region specific assessments and competition analysis on a global and regional scale.
Identification of factors instrumental in changing the market scenarios, rising prospective opportunities and identification of key companies which can influence the market on a global and regional scale.
Extensively researched competitive landscape section with profiles of major companies along with their strategic initiatives and market shares.
Identification and analysis of the Macro and Micro factors that affect the industry on both global and regional scale.
A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.
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