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Market Overview
- The Global Ready-to-drink Coffee market is expected to grow at a CAGR of 5 % to reach a market value of USD XX million by 2027.
- Due to the growing consciousness among people for healthy intakes is expected to fuel growth in the global Ready-to-drink (RTD) coffee market over the forecast period.
- Ready to drink (RTD) coffee is a packaged coffee beverage which is sold in a prepared form, and ready for consumption. However, the packaging can be of various types such as PET bottled which is most common and others being as Canned, glass, and tetra pack.
- The report covers all the major trends and drivers playing a key role in the growth of the Ready-to-drink Coffee market. The ready-to-drink coffee market is segmented by Packaging, Distribution Channel, and Region.
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Market Dynamics
- The global Ready-to-drink Coffee is primarily driven by the rising consciousness among the people for the consumption of healthy food and beverages, and it is growing as the substitute for the carbonated drinks as people are shifting towards healthy intakes. Coffee contains several useful nutrients, including riboflavin (vitamin B-2), niacin (vitamin B-3), magnesium, potassium, and various phenolic compounds, or antioxidants. And hence have various health benefits such as coffee consumption lowers the risk of liver cancer by around 40%. Some of the results suggest that people who drink three cups per day might have a 50% lower risk. And also, the findings of a 2017 meta-analysis suggested a link between coffee consumption and a lower risk of Parkinson's disease, even among people who smoke. This team also found that people who drink coffee may be less likely to experience depression and cognitive conditions such as Alzheimer's.
- Moreover, the rising internet penetration all around the globe, especially in developing countries like India, Brazil, and China coupled with easy access to the e-commerce website for online shopping for FMCG products is expected to drive the market for the ready-to-drink coffee market for the forecast period.
- However, due to stringent regulation on the labeling and packaging of the product by various governments will hampering the growth of Ready-to-drink Coffee in the forecast period.
Segmentation Analysis
- By Packaging, the global Ready-to-drink Coffee market is segmented into Canned, PET bottles, Tetra pack, and Others. PET bottles have the dominant position in the Ready-to-drink Coffee market and are expected to retain their dominance in the forecasted period. As PET bottles provide benefits such as easy handling while transportation and also, due to the cheaper packaging cost as compared to other segments. However, the tetra pack is also gaining the market due to the rise in demand for environmental-friendly packaging and will be growing with a higher CAGR. It is expected that PET bottle packaging for RTD Coffee will grow at a CAGR of ~XX% during the forecast period.
- By Distribution Channel, the global RTD coffee market is segmented into an Online distribution channel and offline distribution channel. Offline distribution channel has the dominant position in the Condiments market due to the rising supermarkets and hypermarket, giving the excess to these all types of condiment products available for different consumers easily all around the world.
Geographical Analysis
- By geography, the global Ready-to-drink Coffee market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).
- APAC holds the largest market share for Ready-to-drink (RTD) Coffee due to the rise in the population coupled with the disposable income in the region. The rise in awareness among the people for the consumption of healthy food and beverages is driving the market for ready-to-drink coffee in the region. Japan and South Korea are the largest consumers of the ready-to-drink coffee in Asia-Pacific. Countries like India, Indonesia, and Vietnam are the major producers and exporter of coffee in the market. Also, due to the rise in the e-commerce industry in the developing countries like India will drive the RTD coffee market to grow in the forecast period.
- For instance, E-commerce will be the engine of the next level of Indian consumer growth. In 2019, India’s e-commerce marketplace is valued at $200 Bn and predicted to reach $1.2 Tn by 2021.
- Europe is gaining the market share of Ready-to-drink Coffee with a higher rate of CAGR due to the high demand for various favored RTD coffee by the people in the region. And also, due to the rise in the retail industry, which makes it convenient for people to purchase F&B items from the nearby retail stores. For instance, investment and development in Eastern Europe are constantly growing. Poland is entering its third decade of dynamic growth with new overseas retailers and luxury brands entering the market with thirty new global brands set up operations in the country last few years. There is a retail boom in Russia as 63 new complexes in 40 Russian cities have been completed. There is a positive attitude in Western Europe of investment in outdated shopping centers to allow retailers to expand locally.
Competitive Landscape
- Key players are adopting strategies such as investing in R&D, new product launches, expansion in Distribution Channel to stand out as strong competitors in the market. Global Ready-to-drink Coffee is a competitive market with the presence of various global and regional players in the market. The major players Nestlé S.A., Starbucks Corporation, Arla Foods. The Coca-Cola Company, The J.M. Smucker Company, Suntory Beverage & Food. Other key players in the market include Lotte Chilsung Beverage Co Ltd, Tres Coracoes Alimentos S.A., Dr. Pepper Snapple Group, Dunkin' Brands, and WhiteWave Foods.
- In June 2019, the first major Costa Coffee product launch since Coca-Cola’s acquisition of the brand has been announced: Costa Coffee ready-to-drink. The range includes the variants Classic Latte, Caramel Latte, and Black Americano. The range is made from “proper coffee,” with the blend that Costa uses for its entire line, its Mocha Italia Signature Blend. The range will debut in the UK later this month, followed by launches in Poland and China. The decision to release in these regions has been determined by the high levels of Costa’s success in these particular countries.
- In May 2019, Suntory Beverage & Food North America LLC announces the US launch of BOSS Coffee, its ready-to-drink (RTD) flash-brewed coffee brand. BOSS Coffee is currently Japan’s third best-selling beverage, with dozens of unique products and over 100 million cases sold in 2018. BOSS Coffee now aims to serve the United States’ rapidly growing RTD coffee market, which has averaged over 10% year-over-year category growth since 2013. BOSS Coffee has plans for retail expansion in 2019. They hope to usher in a new wave of quality to the US RTD coffee market through their superior quality of Japanese flash-brew.
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The Ready To Drink Tea & Coffee Market 2021 research report gives emerging industry data, global segments and regional outlook.
The report generated using various analysis tools like porter’s five forces model, market attractiveness and value chain.
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