Market Size of north america ready to drink coffee Industry
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Study Period | 2018 - 2030 |
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Market Size (2024) | USD 5.65 Billion |
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Market Size (2030) | USD 7.52 Billion |
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Largest Share by Soft Drink Type | Iced coffee |
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CAGR (2024 - 2030) | 4.85 % |
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Largest Share by Country | United States |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
North America Ready to Drink Coffee Market Analysis
The North America Ready to Drink Coffee Market size is estimated at 5.65 billion USD in 2024, and is expected to reach 7.52 billion USD by 2030, growing at a CAGR of 4.85% during the forecast period (2024-2030).
5.65 Billion
Market Size in 2024 (USD)
7.52 Billion
Market Size in 2030 (USD)
4.14 %
CAGR (2018-2023)
4.85 %
CAGR (2024-2030)
Largest Segment by Soft Drink Type
25.45 %
value share, Iced coffee, 2023
Growing popularity of ready-to-drink beverages along with introduction of new flavors across the country makes the product largest share
Fastest-growing segment by Soft Drink Type
6.24 %
Projected CAGR, Cold Brew Coffee, 2024-2030
Growing consumers inclination towards the healthy beverages cpoupled with the availablity of exotic flavors is expected to increase the sales of cold brew coffee across the region
Leading Market Player
72.76 %
market share, PepsiCo, Inc., Inc.
PepsiCo focuses on differentiating their offerings in terms of flavors and align their products as per the taste and preference of local consumers
Largest Segment by Country
96.48 %
value share, United States, 2023
The United States occupied the largest Company due to the wide availability of RTD coffee and its rising appeal among time-pressed consumers of different age groups.
Fastest-growing segment by Country
6.03 %
Projected CAGR, Mexico, 2024-2030
Growing trend of on-the-go consumption supported with companies focus on product differentiation are the major factors boosting the consumption of RTD coffee during forecast period
Innovations in RTD coffee drinks with healthier and functional drinks driving growth
- North America witnessed a surge in the popularity of ready-to-drink (RTD) coffee, encompassing products such as iced coffee, cold brew, and coffee-based energy drinks. The convenience and portability of these offerings have struck a chord with time-pressed consumers. Gen Z consumers are gravitating toward RTD coffee over its hot counterpart. In response, brands are ramping up their RTD coffee portfolios. This trend is further fueled by the fact that, as of 2022, approximately 20.88% of the US population, 22% of Canadians, and 27% of Mexicans fall into the Gen Z age bracket. Moreover, there is a discernible shift toward healthier and more functional RTD coffee options. In 2023, about 35% of North American consumers expressed a preference for low-sugar RTD coffees. Manufacturers are taking note and introducing low-sugar, dairy-free, and plant-based alternatives to cater to this growing demand.
- From 2018 to 2022, the value of the iced coffee market in North America witnessed a compound annual growth rate (CAGR) of 4.85%. Cold beverages are the preferred choice for a majority of North American consumers. Iced coffee, often seen as convenient, is available in a range of flavors and formulations, often with added sweetness. This popularity is expected to drive the market's growth in the coming years.
- Cold brew coffee is poised to be the frontrunner in terms of growth, with a projected CAGR of 6.37% from 2024 to 2030. Cold brew, known for its lower acidity and ample caffeine content, has a natural sweetness without any added sugars or additives. Some variants even offer carbonation, such as nitro cold brew. This makes RTD cold brew coffee an enticing option for those seeking a refreshing, cold beverage other than soda or fizzy drinks.
Due to the increasing demand for convenient beverages, Mexico is expected to be the future front-runner in the market studied
- The North American ready-to-drink (RTD) coffee market witnessed robust growth, with sales surging by 10.03% in value from 2021 to 2023. This growth can be attributed to the rising consumer demand for RTD coffee products, prompting manufacturers to introduce new and innovative offerings. Notably, in 2022-2023, renowned brands such as Starbucks, Dunkin', Califia Farms, and La Colombe unveiled a range of RTD coffee options to captivate consumers.
- The United States dominates the North American RTD coffee market, bolstered by its significant coffee consumption. The country's coffee consumption stands at 1.4 billion pounds, accounting for roughly 20% of global coffee consumption. Additionally, the United States is a major coffee bean importer, with imports exceeding 3 billion pounds in 2021. The introduction of functional ingredient-infused beverages further fuels coffee consumption, as these offerings not only enhance focus and productivity, traditionally associated with caffeine, but also cater to other health aspects.
- Mexico is observed to be the fastest-growing country, apart from the Rest of North America, with an expected CAGR of 6.03% by value from 2024 to 2030. Growing urbanization and expansion in the middle-class community are driving the market for RTD tea in the country. Mexico is also becoming increasingly urbanized, leading to a higher demand for convenient and portable food and beverage options. As per World Bank reports, the urbanization rate in Mexico was 82.6% the previous year, which was way above the average global rate of urbanization, 56.6%, with 82.6% of the population residing in urban areas as of 2023.
North America Ready to Drink Coffee Industry Segmentation
Cold Brew Coffee, Iced coffee are covered as segments by Soft Drink Type. Aseptic packages, Glass Bottles, Metal Can, PET Bottles are covered as segments by Packaging Type. Off-trade, On-trade are covered as segments by Distribution Channel. Canada, Mexico, United States are covered as segments by Country.
- North America witnessed a surge in the popularity of ready-to-drink (RTD) coffee, encompassing products such as iced coffee, cold brew, and coffee-based energy drinks. The convenience and portability of these offerings have struck a chord with time-pressed consumers. Gen Z consumers are gravitating toward RTD coffee over its hot counterpart. In response, brands are ramping up their RTD coffee portfolios. This trend is further fueled by the fact that, as of 2022, approximately 20.88% of the US population, 22% of Canadians, and 27% of Mexicans fall into the Gen Z age bracket. Moreover, there is a discernible shift toward healthier and more functional RTD coffee options. In 2023, about 35% of North American consumers expressed a preference for low-sugar RTD coffees. Manufacturers are taking note and introducing low-sugar, dairy-free, and plant-based alternatives to cater to this growing demand.
- From 2018 to 2022, the value of the iced coffee market in North America witnessed a compound annual growth rate (CAGR) of 4.85%. Cold beverages are the preferred choice for a majority of North American consumers. Iced coffee, often seen as convenient, is available in a range of flavors and formulations, often with added sweetness. This popularity is expected to drive the market's growth in the coming years.
- Cold brew coffee is poised to be the frontrunner in terms of growth, with a projected CAGR of 6.37% from 2024 to 2030. Cold brew, known for its lower acidity and ample caffeine content, has a natural sweetness without any added sugars or additives. Some variants even offer carbonation, such as nitro cold brew. This makes RTD cold brew coffee an enticing option for those seeking a refreshing, cold beverage other than soda or fizzy drinks.
| Soft Drink Type | |
| Cold Brew Coffee | |
| Iced coffee | |
| Other RTD Coffee |
| Packaging Type | |
| Aseptic packages | |
| Glass Bottles | |
| Metal Can | |
| PET Bottles |
| Distribution Channel | |||||||
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| On-trade |
| Country | |
| Canada | |
| Mexico | |
| United States | |
| Rest of North America |
North America Ready to Drink Coffee Market Size Summary
The North American ready-to-drink (RTD) coffee market is experiencing significant growth, driven by the increasing demand for convenient and portable coffee options such as iced coffee, cold brew, and coffee-based energy drinks. This trend is particularly popular among Gen Z consumers, who prefer RTD coffee over traditional hot coffee. The market is also witnessing a shift towards healthier and more functional options, with a growing preference for low-sugar, dairy-free, and plant-based alternatives. The popularity of cold brew coffee, known for its lower acidity and natural sweetness, is expected to lead the market's growth in the coming years. The United States remains the dominant player in the market, supported by its high coffee consumption and the introduction of functional ingredient-infused beverages that cater to health-conscious consumers.
The market landscape is fairly consolidated, with major players like Califia Farms, LLC, Danone S.A., Keurig Dr Pepper, Inc., PepsiCo, Inc., and The Coca-Cola Company holding significant market shares. These companies are actively expanding their RTD coffee portfolios through strategic partnerships and investments. For instance, Keurig Dr Pepper's partnership with La Colombe and Danone's investment in increasing RTD coffee production highlight the industry's focus on innovation and expansion. Mexico is emerging as the fastest-growing market, driven by urbanization and a burgeoning middle class seeking convenient beverage options. Despite challenges such as inflation and supply chain issues, the market remains resilient, offering a wide variety of RTD coffee options to cater to diverse consumer preferences.
North America Ready to Drink Coffee Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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1.1 Soft Drink Type
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1.1.1 Cold Brew Coffee
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1.1.2 Iced coffee
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1.1.3 Other RTD Coffee
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1.2 Packaging Type
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1.2.1 Aseptic packages
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1.2.2 Glass Bottles
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1.2.3 Metal Can
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1.2.4 PET Bottles
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1.3 Distribution Channel
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1.3.1 Off-trade
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1.3.1.1 Convenience Stores
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1.3.1.2 Online Retail
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1.3.1.3 Specialty Stores
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1.3.1.4 Supermarket/Hypermarket
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1.3.1.5 Others
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1.3.2 On-trade
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1.4 Country
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1.4.1 Canada
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1.4.2 Mexico
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1.4.3 United States
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1.4.4 Rest of North America
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North America Ready to Drink Coffee Market Size FAQs
How big is the North America Ready to Drink Coffee Market?
The North America Ready to Drink Coffee Market size is expected to reach USD 5.65 billion in 2024 and grow at a CAGR of 4.85% to reach USD 7.52 billion by 2030.
What is the current North America Ready to Drink Coffee Market size?
In 2024, the North America Ready to Drink Coffee Market size is expected to reach USD 5.65 billion.
