The global RTD Coffee Market boasts an unparalleled distribution channel in Asia Pacific, which as per Fortune Business Insights is a key factor supporting its expansion in the region. In its report, titled “RTD Coffee: Global Market Analysis, Insights and Forecasts”, Fortune Business Insights has found that by exhibiting a CAGR of 8.5%, this market will reach a valuation of US$ 36.60 Bn by the end of 2025. In 2017, the market was valued at US$ 19.05 Bn and the estimated rise in its worth can be attributable to the vast consumption of ready-to-go coffee around the world.
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List of prominent companies that are operating in the global RTD Coffee Market are:
- The Coca-Cola Company
- Nestle S.A.
- Starbucks Corporation
- JAB Holding Company
- Asahi Group Holdings, Ltd.
- McCafe – McDonald’s
- International Delight
- Dunkin’ Brands Group, Inc.
- Bulletproof 360, Inc.
The RTD coffee provides enhanced convenience by utilizing either brewed coffee or coffee extract that can be consumed in hot and cold form. Frozen and Iced versions of RTD coffee have witnessed robust popularity across different foodservice platforms. This has prompted consumers to replicate the same hydrating experience both at the home and on-the-go, this trend has further facilitated the retail sales of RTD coffee in the global marketplace.
Major Segmentation includes:
By Packaging Material
- Glass and PET Bottles
By Distribution Channel
- Supermarkets/ Hypermarkets
- Convenience Stores
- Online Retail
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Understanding the Local Ingredient Preference is Key to Increased Regional Product Distribution
The production and sales of RTD coffee is majorly affected by the flavor and use of active ingredients that are used in those particular regions. Many companies are focusing on these aspects as a key strategy to expand their business and improve sales and distribution of RTD coffee in related regions.
Asia Pacific can be labelled as leading region in terms of market value. The dominance of Asia Pacific can be attributed to the presence of several big companies who have adopted attractive business strategies. Companies such as Pepsi Co and Coca-Cola have had successful contributions in the RTD coffee market of Asia Pacific.
Besides Asia Pacific, the RTD coffee market is also rising at a steady pace in other regions such as Europe and North America. Many companies are trying to expand their distribution channels and increasing their sale by introducing newer products. For instance, in 2018, SMARI launched its line of Icelandic Protein Coffee. In addition, it launched three new flavours of RTD coffee with an aim of using healthy ingredients within their products. In January 2018, Keurig Green Mountain completed the acquisition of soft drink company Dr. Pepper Snapple with an aim of introducing coffee as soda alternative. Such noteworthy mergers and acquisitions have had a huge impact on the global RTD coffee market and are likely to drive the market towards growth in the forecast period.
Cardboard based Packaging to be used Widely in the forthcoming years
An important part of any RTD coffee business is to provide suitable packaging. These packaging methods should suffice compliance standards and also be accepted by end users. Governments across the world are promoting the use of biodegradable and environment friendly packaging. The aforementioned factors have created the demand for alternatives of bottled and plastic packaging. As of 2017, bottles and canned packaging have dominated the market but the growing emphasis on biodegradable packaging is a major reason why cardboard based packaging will be used widely in the forecast period.
RTD Coffee May Soon Replace Carbonated Energy Drinks
The advantages of RTD coffee and possibilities of introducing numerous flavors have caught the eyes of companies producing beverages such as carbonated drinks. Energy drinks were seen to have the same effect as RTD coffee, but with lesser health benefits. Thus, the advent of healthy and keto-based coffee may lead to a shift of focus to RTD beverages and customers may prefer RTD coffee over carbonated drinks. Such factors will aid expansion in the global RTD market in the coming years.
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