RTD Coffee Market 2018 - Regional Analysis, Key Players and Forecast till 2026

The global RTD coffee market depicts a fragmented and competitive landscape. The market is witnessing emergence of several small players, who are increasing adoption with new tastes and flavors. Additionally, the global RTD coffee market is witnessing increased fragmentation due to expansion in emerging markets, reports Transparency Market Research (TMR).

Some key players in the RTD coffee market are Starbucks Corporation, Nestlé S.A., The Coca-Cola Company, PepsiCo Inc., The J.M. Smucker Company, McDonald's Corp., Monster Beverage Co., Suntory Holdings Limited.

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The global RTD coffee market players continue to introduce new products with innovation to attract new buyers. Coffee drink continues to attract young customers and their open attitude towards new worldviews is favorable to growth. Additionally, trends such as sustainability also promise new opportunities for players in the RTD coffee market. Customers continue to demand sustainable coffee products, however, very few display a keen knowledge of sustainability.

Due to robust trends of innovation, the RTD coffee market is expected to grow at a notable 8.0% CAGR during 2018-2026. Additionally, the market is expected to arise from an already healthy evaluation of US$ 9,141.7 Mn in 2018.

The main product driving the RTD coffee market will be the cold brew ready-to-drink coffee. This segment will rise at 9.4% CAGR during 2018-2026. Due to widespread availability of drinks such as mocha, cappuccino, and espresso, the RTD coffee market will register a healthy growth in the near future. Moreover, region wise, the Asia Pacific region will register the highest growth, with a 9.1% CAGR. Japan is a key market to watch out in the near future.

Region

North America

Latin America

Europe

APAC

Middle East & Africa

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E-Commerce to Drive Expansion of the RTD Coffee Market

E-commerce companies like Amazon are introducing new products into completely new markets every day. This is a boon for the RTD coffee market. Coffee has just started gaining traction in emerging markets of Asia Pacific. Coffee products like mocha and espresso are still not part of daily habits for many cultures, which are still accustomed to tea. On the other hand, RTD coffee products offer a convenient way to gain some energy in hectic work environments.

Coffee provides a quick shot of mental boost, thanks to Caffeine. Additionally, due to growing competition between e-commerce giants to capture large market share, they also provide extremely cost-effective products. The cost-effectiveness of products, growing demand for coffee, and growing popularity of coffee among young people are likely to fuel expansion for the RTD coffee market.

The key segments of the ready-to-drink coffee market are as follows:

Product

Café Latte

Cappuccino

Espresso

Caffe Mocha

Flat White

Cold Brew Coffee

Decaffeinated

Others

Packaging

Canned

Glass Bottles

PET Bottles

Tetra Packs

Others

Package volume

101 -250 ml

251 -400 ml

401 -550 ml

551 ml and Above

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High Demand for Healthier Alternative to Carbonated Drinks Propels Ready-to-Drink Coffee Market

Consumption of healthy foods and beverages is a huge trend that involves a large portion of the worldwide population. Ready-to-drink coffee is another functional drink that has been shown to have health advantages. Growing rates of obesity among children and adults, inadequate eating habits, busy lives, and tight work schedules are all factors driving consumers toward healthier choices in terms of convenience food. Calorie-conscious consumers and the diabetic population are seeking sugar substitutes in their beverages, which is boosting the demand for antioxidant-enriched health drinks.

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