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The Ready to Drink Coffee market size is projected to grow by USD 14.91 billion at a CAGR of 8.89% between 2023 and 2028. In today's fast-paced world, the demand for convenient and on-the-go refreshments has surged significantly. One beverage that has gained immense popularity is coffee. Not only does it provide an instant energy boost, but it also offers numerous health benefits, including improved focus and cognitive function. With changing consumer lifestyles, the traditional sit-down coffee shop experience is evolving. Enter the era of ready-to-drink coffee, offering the same rich taste and invigorating caffeine content in a portable and convenient format. This trend is driven by the rising demand for on-the-go refreshments and increasing awareness of coffee's benefits, making it a preferred choice for individuals seeking a quick pick-me-up.
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The market share growth forecasts for the glass bottled segment will be significant. One of the key segments is preferred by consumers is the glass-bottled segment due to its several packaging advantages. Some of the key advantages include the transparent nature of glass allows consumers to visually appreciate the product inside, creating a perception of high quality and freshness. This premium image appeals to consumers who value a luxurious and authentic drinking experience.
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The glass-bottled segment was valued at USD 9.49 billion in 2018.
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There is a growing popularity for glass bottles due to their highly regarded for their ability to preserve flavor, aroma, and quality. Factor such as it provides excellent protection against external factors that can degrade the product due to the impermeability of glass to light, oxygen, and moisture ensuring freshness and taste for a longer shelf life, enhancing the overall consumer experience. One of the key advantages of glass-bottled RTD coffee is that it is suitable for on-the-go consumption as glass has high resistance to heat, ensuring that the beverage remains at an optimal temperature preserving its quality. Hence, such factors are expected to drive the growth of this segment which in turn will drive the growth of the market during the forecast period.
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North America is estimated to contribute 57% to the growth of the global market during the forecast period
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Technavio’s analysts have elaborately explained the regional market growth and trends that shape the market during the forecast period. Factors such as changing consumer preferences and increasing demand for convenience products are some of the major reasons driving the market globally, especially in Australia, the US, Italy, Spain, South Africa, France, Brazil, Russia, Latin America, Argentina Canada, and India. This includes both the incorporation of local tastes and the experimentation with global inspirations, such as those found in Italian or Latin American. In regions like New Zealand and the Asia-Pacific, where the market is witnessing substantial growth rates, the increasing population of enthusiasts is contributing to the expanding market share.
The market is rapidly growing, driven by evolving cafe culture and increasing demand in offices, shops, and restaurants. This market includes a variety of soft drink types, such as cold brew coffee, iced coffee, and coffee latte, catering to coffee drinkers who seek convenience. Packaging types like aseptic packages and metal cans ensure freshness and portability, while options range from economical to mid-range products. The market offers natural, conventional, and organic choices, appealing to diverse consumer preferences. Additionally, the rise of energy drinks and carbonated beverages influences the energy drinks space, positioning RTD coffee as a competitive and refreshing alternative. The RTD coffee sector continues to innovate, integrating trends in on-trade and off-trade channels to meet evolving consumer needs.
One of the key factors driving the market growth is the rising demand for on-the-go refreshments. As individuals prioritize time and seek quick and convenient solutions for their daily needs, including food and beverages, there is an increase in preference for on-the-go consumption, where consumers can easily grab a beverage and continue with their busy routines.
As a result, there is a rising demand for on-the-go refreshments which is significantly driving the growth in the global RTD coffee market. There is a growing popularity of RTD coffee as an on-the-go refreshment is particularly evident in urban areas, due to the busy lifestyles and longer work hours are prevalent. Hence, such factors are expected to drive the RTD market during the forecast period.
A key trend shaping the market growth is the growing number of product innovations. The rise in the number of product innovations is a significant trend gaining popularity in the global market as many major vendors operating in the global market are prioritizing developing new products to gain a competitive advantage in the market. The introduction of Danone's Cold Brew product caters to consumers seeking elevated experiences without compromising on taste or convenience. Consequently, forecasts of such innovations aligning with consumer preferences in topics are anticipated to propel growth in the market.
The market growth and forecasting report showcases an assortment of variants designed to entice diverse consumer preferences and needs. These variants encompass an array of flavors, strengths, and packaging options, including the convenience of pet bottles and alternative innovative packaging choices.
Regulatory compliance associated with products is one of the key challenges hindering market growth. The industry has to comply with various regulations and standards related to food safety, labeling, ingredient specifications, and manufacturing practices. Therefore, manufacturers must adhere to strict hygiene practices, implement Hazard Analysis and Critical Control Points (HACCP) systems, and ensure proper sanitation and cleanliness throughout the production processes, as compliance with these regulations is crucial to ensure product safety, protect consumer health, and maintain the integrity of the market. Hence, these regulations and standards may limit manufacturers from innovating new products, which can significantly hinder the market.
These beverages comprise diverse ingredients and come in various packaging types, meeting the demands of a broad consumer base. With increasing competition in this field, companies like Nestlé, Coca-Cola, and others are continuously innovating, introducing new flavors, and leveraging different packaging types to stay ahead in the market.
Companies are implementing various market research and growth strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Asahi Group Holdings Ltd.: The company offers RTD coffee, such as Wonda Morning Shot.
Caribou Coffee Operating Co. Inc.: The company offers ready-to-drink coffee such as vanilla-crafted cold brew, milk, wish-to-blend light roast, and Amys blend light roast.
Starbucks Corp.- The company offers flavored RTD coffee varieties such as Vanilla Flavored RTD Coffee varieties and caramel flavored varieties, the most popular among the business segment.
The market analysis and report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The market is thriving with the influence of café culture and growing consumer interest in snap chilled coffee and sparkling canned coffee. Catering to both Millennials and the elderly population, this market spans diverse soft drink types including black coffee, mocha, and RTD tea. Consumers seek products with natural ingredients, such as green tea extract, antioxidants, and adaptogens, aligning with health and wellness trends. Packaging types like metal cans and carton packaging are essential for maintaining freshness and convenience. Distribution through mass merchandisers, convenience stores, gas stations, and e-commerce platforms addresses the needs of both Gen Z and older generations. With rising obesity rates, the focus is on incorporating nutrients and vitamins to promote healthier choices, supported by efficient inventory management practices.
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Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.89% |
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Market growth 2024-2028 |
USD 14.91 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
8.05 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 57% |
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Key countries |
US, Germany, Japan, UK, and China |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Arla Foods amba, Asahi Group Holdings Ltd., Bulletproof 360 Inc., Califia Farms LLC, Campbell Soup Co., Caribou Coffee Operating Co. Inc., Danone SA, Heartland Food Products Group LLC, Illycaffe Spa, Inspire Brands Inc., Keurig Dr Pepper Inc., Lotte Corp., McDonald Corp., Nestle SA, PepsiCo Inc., Restaurant Brands International Inc., Starbucks Corp., Suntory Holdings Ltd., The Coca Cola Co., and The J.M Smucker Co. |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Packaging
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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