Global Ready to drink coffee market is registering impressive growth since 2012. The industry net revenue is estimated to be valued over US$ 21.7 Billion in 2018. Growing at a CAGR of 8.7%, the industry is set to witness emergence of many new players in another ten years. Total volume sales increased by 6.9% in 2018.
Consumption of RTD has increased since 2012 owing to higher emphasis on product R&D, increase in per capita income, introduction of new flavors, and rising demand for on-the-go beverages. Consumers are become health conscious. The industry growth is redefined by higher preference for cold brew coffee.
In last few years, the degree of competition has increased globally. Many new players are venturing in order to generate high ROI and maximize revenue potential.
Global Ready to Drink (RTD) Coffee Market Analysis, By Product Packaging
RTD coffee is available in different packaging formats. Among all, canned RTD dominated the revenue with 33% of global share. Easy availability and consumer convenience has created favorable environment for canned based products. PET bottles stands next to canned.
While PET bottles holds a significant portion of the net revenue, its share is expected to decline with increasing demand for disposable products. As such, pouches and cartons will gain significant traction in another ten years.
Global Ready to Drink (RTD) Coffee Market Size Analysis, By Distribution Channel
By distribution channel, global RTD coffee market is expected to be dominated by major retail chains, followed by hypermarkets and supermarkets. Major coffee chains are actively focusing on product innovation to stay ahead of the competition. Recently, in 2018, Starbucks announced its plan to revive Single-serve cold brew in new flavors.
Hypermarket will stand next to coffee chains. Sales from hypermarkets and supermarkets is higher in metropolitan cities. Ease of purchasing is one such factor driving the sales of RTD from hypermarkets.
Global Ready to Drink (RTD) Coffee Market Analysis, By Distribution channel
By distribution channel, the Ready to Drink (RTD) Coffee market revenue is segmented into hypermarket, supermarket, specialty pet care centers, online sales channel and veterinary hospitals and stores, and other general stores.
Among these, online sales channel is expected to be the most lucrative channel as most of the leading players are leveraging it to expand their business presence worldwide. Online sales channel accounted for over 11% of total sales and is expected to further increase to 20% by 2028. In U.S., Chewy and Amazon accounted for nearly 82% of online channel share. Many more entrants are emerging in the market – creating higher competitiveness in the segment.
Global Ready to Drink (RTD) Coffee Market Size and Forecast: Regional Analysis
Globally, Asia Pacific accounted for 71% of global RTD coffee market share, followed by North America and Western Europe. Asia Pacific is driven by high sales in Japan. In fact, Japan accounted for 53% of global revenue share in 2017. Changing lifestyle Japan is highly mature market, registering single digit growth. Players in the country are focusing on flavor to woo consumers. Packaging product will also play a major role in sales of RTD coffee in Japan. Further mergers and acquisitions could take place based on current state of saturation. Coca-Cola and Suntory Beverage & Food are major players operational in Japan.
Besides Japan, China and India are major destination in Asia Pacific. China is growing at an impressive CAGR of 17.7%, creating new market prospects for industry players. There is very high potential opportunity with companies since a major part of China consumers are still untapped. In 2017, per capita coffee consumption in China was just 2.7 cups per year. This is far less than Japan and other developed regions. The country holds the potential to become major destination by end of forecast period owing to its sheer size of population and changing lifestyles. As of 2018, the industry is highly consolidated with Nestle accounting for over 57% of total China RTD coffee market value. Nestle has strong distribution network in tier 1 and tier 2 cities, which has largely strengthened its regional presence.
North America is the next lucrative destination for RTD coffee market players. The region is characterized by cutthroat competition. A major portion of sales is contributed by Starbucks and PepsiCo. It controls a wide portfolio of brands and is currently focusing on wide range of flavored cold brew to ensure long term sustainability. Other players including Coca-Cola is expanding its sales reach through direct partnership with regional distributors and retail chains.
Western Europe RTD coffee market is driven by high sales in EU-5 region. In 2017, Germany accounted for highest sales in the region. Compared to North America and Japan, consumption of RTD coffee is sparsely low. There exists favorable ecosystem to drive sales. The region will register 10.5% growth between 2018 and 2028 to create high ROI for players.
Global Ready to Drink (RTD) Coffee Market Size and Forecast: Competition Landscape
Few major RTD coffee market players are:
- Ajinomoto General Foods Inc.
- Dunkin Brands Group
- Monster Beverage Co.
- Starbucks Corporation
- San Benedetto
- Asahi Group Holdings Ltd.
Ready to Drink (RTD) Coffee Market Industry Segmentation
- Glass Bottle
- PET Bottle
By Distribution Channel:
- Coffee Chains
- Food Service Centers
- Convenience Stores
What Will You Discover in the Report?
- An in-depth analysis of the Ready to Drink (RTD) Coffee market across regions – North America, Latin America, Western Europe, Central and Eastern Europe, Asia Pacific, Middle East, and Africa.
- How the Ready to Drink (RTD) Coffee market sales is expected to grow throughout the forecast period.
- How geopolitical policies and technological changes will affect the Ready to Drink (RTD) Coffee market in near future
- Where the stakeholders should invest to generate higher profit margins
- How consumers (end-users) will reflect to the Ready to Drink (RTD) Coffee industry during the forecast period
- Who are the Ready to Drink (RTD) Coffee industry leaders and what are the key initiatives taken by them for long term growth
Analyst access with Bekryl Market Analysts
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Ready to Drink (RTD) Coffee Market Research Methodology
Ready to drink coffee market is registering impressive growth owing to rise in disposable income and opening of new outlets. Health and wellness is attracting consumers towards RTD coffee consumption. Many new startups have emerged in the arena. As a result, competition has increased in the RTD market.
Bekryl Market Analysts has earned reputation within the market research and consulting industry for its ability to not only collect and reprint data but also its ability to build upon its extensive models and databases to provide meaningful forecasting and strategic planning services to clients.
Our research analyst and industry experts thoroughly investigates the industry by extensively interviewing the industry leaders and analyzing information from various secondary sources. The information collected is analyzed with the help of analytical tools to offer real time forecast solutions.
Ready to Drink (RTD) Coffee Market Growth Forecasting Methodology
In order to prepare historical data and analyze Ready to Drink (RTD) Coffee market forecast, Bekryl prepare data for product supply and actual demand from end-use consumers. Through this, we get to know actual demand for Ready to Drink (RTD) Coffee market globally. The data collection is done through secondary and primary market research and then a constructive model is developed.
- Secondary market research involves data collection through various paid publications and government agencies. Various journals and pre-encrypt transcripts is decoded to get the real time data solutions
- The data collected through secondary research is then validated with the industry experts to minimize the anomaly and reflect key stakeholders opinion in the report.
With the model constructed, the cluttered data collected through different sources is structured with the help of proprietary analytical tools – making us understand the variation happened in the current year compared to historical years. To forecast Ready to Drink (RTD) Coffee industry revenue, Bekryl Market Analysts takes in consideration the demand growth of the segments. Demand for the product is dependent on end-user spending which is a function of many factors: amongst them macroeconomic strength, price variation and other base factors.
The forecast methodology requires extensive data analysis across countries. Among all the factors, GVA and GDP output is considered as the first set of approximation. Bekryl Market Analysts has developed a demand driven model based on GDP across targeted countries. Under this, co-relation is analyzed between product and GDP – resulting in a constant GDP-Product coefficient. Higher the coefficient- greater will be the growth rate. For instance, GDP-Product segment coefficient matrix of 3 denotes Ready to Drink (RTD) Coffee industry growth is nearly 3.5X to 5.5X higher than the relative GDP.
Besides GDP-Product Coefficient, Bekryl establishes following relation variation for higher predictive analysis.
- Base Factors Growth Analysis
- Price Variation Analysis
- Potential Consumer Mapping
Ready to Drink (RTD) Coffee Industry Players: Competition Landscape Methodology
Bekryl maps key market players across regions. Financial ratios is taken in consideration along with regional presence and their value chain to understand the company market strength. Thereafter, investment proposition for each company is proposed which gives coefficient matrix value for the company. Industry experts is also reflected in company landscape.