Market Trends of ready to drink coffee Industry
The robust consumption of RTD coffee amongst all age groups across all the regions is propelling the market growth
- RTD coffee consumption is particularly high in the age group of 18 to 39-year consumers, mainly because of the caffeine content present in the beverage which makes it an ideal drink for an adult for an instant boost while engaging in their busy schedule. In 2022, nearly 176 million 60-kilogram bags of coffee were consumed worldwide, a slight increase from almost 167 million bags in the previous year.
- The flavor is one of the most significant attributes when it comes to buying RTD coffee. Different coffee blends and flavorings appeal to diverse tastes, ranging from classic black coffee to various flavored options like vanilla, hazelnut, caramel, and mocha among others. The Netherlands, being one of the major consumers of coffee, states that about 45% of the population prefers black coffee, while Australians prefer Latte and Cappuccino.
- Pricing is one of the crucial factors influencing the consumer’s RTD coffee buying behavior in the market. The quality of beans used in the production of RTD coffee beverage also impact the retail pricing of the product. The average price of arabica beans is USD 5.63 per kg whereas robusta is priced at USD 2.29 per kg in 2022. Other factors like packaging and production costs also influence the sales and pricing of RTD coffee.
- The consumption of RTD coffee is still price-driven, but consumers are interested in purchasing coffee with associated health claims. For instance, In 2022, 92% of coffee lovers in the United States stated that they gave high importance to coffee for the health benefits associated with it. Similarly, 76% of the Japanese population stated they consumed coffee as a healthy beverage in 2022.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- There is a growing trend towards RTD Coffee products that offer fucntional benefits beyond caffeine
- Brands are continously innovating their RTD coffee formulations to offer a wide range of flavors, ingredients and functional benefits
