The global Ready to Drink Coffee market is poised to reach a value of USD 37 billion by 2024 and is projected to reach a value of USD 55.4 billion by 2034, reflecting a compound annual growth rate of 4.1% over the assessment period 2024 to 2034.
The industry is growing dynamically due to the desire of consumers for ready-to-eat meals, tasty and healthy food, and product diversification in terms of flavours and usage. In a bid to consolidate their market position, manufacturers are now sourcing more on research and development, brand image and King (2005) strategic partnerships.
Currently established giants like PepsiCo and TCCC innovate new flavors and better spanning their production towards the healthier choice, on the other hand, Nestlé and Danone give more intensity to the premium section moving their products towards organic products and plant-based food products.
At the same time, such manufacturers as JAB Holding Company and Asahi Group Holdings are stepping up production capacities to strengthen positions on the world market.
One of the key trends seen is that consumers are choosing functional beverages where the product has added protein, adaptogens, or even probiotics. This is leading to consumption of nutritional benefits by health conscious consumers; therefore, manufacturers are adding some of the ingredients.
Also, there is a demand regarding natural and sustainable ingredients forming the industry. Food brands are focusing on describing products as free from artificial preservatives and sweeteners, which will appeal to the environmentally conscious.
The benefit of one-portion packages and recently developed packing wise, such as reusable containers and bottles, also improves consumer satisfaction.
| Attributes | Description |
|---|---|
| Estimated Global Industry Size (2024E) | USD 37 billion |
| Projected Global Industry Value (2034F) | USD 55.4 billion |
| Value-based CAGR (2024 to 2034) | 4.1% |
Also, digital marketing strategies along with involvement of stars for its advertising and publicizing is targeting youths directly and hence is depicting continuous growth. Local coffee producers and retail chains are also necessary to meet regional demands for coffee also.
Even though market fluctuation in raw material prices and competition is a reality, factor like innovation, sustainability, and increasing consumers’ awareness towards a healthier lifestyle is cementing the global prosperity map of the industry.
The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global market.
This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 3.7% (2023 to 2033) |
| H2 2023 | 4.0% (2023 to 2033) |
| H1 2024 | 3.9% (2024 to 2034) |
| H2 2024 | 4.2% (2024 to 2034) |
The global industry's predicted compound annual growth rate (CAGR) over a semi-annual period from 2024 to 2034 is shown in the above table. The business is anticipated to grow at a CAGR of 3.7% in the first half (H1) of 2023 and then slightly faster at 4.0% in the second half (H2) of the same year.
The CAGR is anticipated to decrease somewhat to 3.9% in the first half of 2024 and continues to grow at 4.2% in the second half. The industry saw a decline of 35 basis points in the first half (H1 2024) and an increase of 46 basis points in the second half (H2 2024).
Premiumization in special beverages and sustainability attracting the consumers
Specialty and artisan coffee is making waves in the world market, as public continues to demand high quality, exclusivity and affluence products. Specialization is a factor that contributes to premiumization through presenting many specialization features of the coffee beans from Ethiopia, Colombia, and Guatemala.
The large manufacturers like Nestlé and JAB Holding Company are making launches with diverse taste profiles, emphasizing subtle roasting, or using specific enhancements such as fermentation. Some specialty products may be labelled by third parties like the Fair Trade and Rainforest Alliance to guarantee customers on issues to do with sourcing and sustainability.
These products satisfy the customer who is ready to incur more costs in terms of quality, flavor and origin of the products. Also, some brands have unique staking approaches based on remarkable baristas or café firms. This tendency makes brand more loyal and perceive those beverages a sort of life mission, which is good for the target market - the wealthy, intellectual consumers.
The rise of hybrid energy beverages building a trend towards natural balanced drinks
Wellness trends have caused organisations to extend their energy-enhancing products by including atypical caffeine containing and blended products. Additives such green tea extract, Guarana, maca root, and yerba mate are being incorporated to provide a balanced energy essential enhanced by added nutrition.
Some soft drink majors like PepsiCo and monster Beverage Co. are leading this change through a cocktail of plant based energy sources with the conventional soft drinks and forming a new genre of soft drink. These products make best where the society is looking for natural products compared to synthetic energy boosting products and are best preferred by the young people.
Furthermore, they rise as next generation beverages where both the caffeinated and natural energy boosting properties make these products healthier versions of the traditional value based beverages.
The above shift not only targets users of high-intensity training and consumers who are mindful of their nutritional intake but also customers with experimental preferences of tastes. Staying the course regarding innovation in the market, the concept of hybrid energy beverages is set to gain the biggest chunk of the market.
Innovating Consumer Electronics and Food Industry
Consumer electronics have been brought to the easiest and most convenient way of being bought through e-commerce. Understanding this trend, twitter stars like Starbucks and Dunkin are providing customers with digital avenues to browse, configure, and purchase favourite products including coffee.
Micro subscriptions are getting more and more popular as companies deliver customers monthly portions of inspiring flavor creations or functional blends as, for instance, whisk, cocoa, or chewing gum. These models focus on self-service where consumers have a choice of delivery intervals, cube, and/preferred flavors.
These subscriptions are often bundled with, or affiliated with loyalty programmes, where customers get privileged access to new products or lower prices on larger orders. As with the previous trend, it not only strengthens brand identity, but also leave companies with useful information regarding their customers for future products and services.
Thus, eradicating the gap between offline shopping and online accessibility, companies are adapting to the new world of online-only.
The rising trend of Cold brew coffee
Cold brew has become a major growth factor because of its subtle taste, lesser acidity and crispy refreshing taste. That simple advancement of cold brew extending to nitro variants provides additional value to consumers with its smooth, luxurious mouthfeel characteristic of nitro without the addition of dairy.
Major brewers like The Coca-Cola Company and Asahi Group Holdings are thereby expanding their reach into canned cold brew and nitro drinks which brings café flair in a grab-and-go solution. They also meet consumer’s dietary needs and desires when many of them have shifted their dietary preferences towards low calories and sugar.
High visibility of nitro beverages such as beverages with sparkling foam and professional packaging also enhance consumer interest and frequent posting on social media platforms. The popularity of cold brew and the nitro concepts are justified by consumers focusing on innovation as well as indulgence.
Easy to Use packaging by manufacturers attracting the consumers
The global consumer is as much concerned with sustainable products as they are with good products and those are the trends that have been observed in packaging solutions currently dominating the market.
Multinational organizations like the Unilever and Suntory Beverage & Food have migrated from non-recyclable, non-biodegradable packaging materials to biodegradable, recyclable, or reusable packaging. While packaging is one area, brands are going even further choosing carbon neutral production and sustainably farmed ingredients.
Another key feature of this trend is that companies declare their efforts through labels and campaigns. For example, there are several manufacturers that are already using block chain technology to offer traceability for their beans to bottle.
Linkage with these efforts enhances brand appeal particularly with green or environmental concern consumers, turning sustainability into market differentiation strategy, a valuable asset in the global market.
Digital Transformation of Millennial and Gen Z Beverages
Today’s customers are trend-conscious and much attention is paid to functional features rather than flavors and tastes. Functional blends contain elements such as muscle recovery proteins, quality probiotics, and antioxidants/stress reducers.
That is why such innovative product portfolio offering companies as Danone and Nestlé work on introducing new products and product variation to meet these needs. Sipping these beverages has become a habit of professionals and physically active people as they look for a quick fix for their busy schedules without having to harm their bodies genetically through other unhealthy products.
The trend also accords with the increased needs for clean label products as brands pay a special attention to ingredients used in products. By combining the caffeinating aspects of conventional drinks with functional health-enhancing design aspects, this has greatly expanded the customer base especially of the younger generations including the millennials and Gen z.
The global ready to drink coffee market has grown consistently in a historic analyzed time of 2019 to 2023. Market sales grew at a CAGR of 3.9% between 2019 and 2023. The period marked the entry of various market players and product innovations.
Over the past few years, new trends have consistently emerged, and nourishment of gut health among consumers has become increasingly popular as a result, manufacturers have realized the importance of meeting the nutritional requirements of the young age cohort and the generation before them around the world on account of an increase in concerns about nutrition and modern time constraints.
The growth of the market by the end of the forecast period, where ready to drink products continue to gain ground as one of the significantly growing retail products in the food & and beverage sector, capitalizing on increasing consumer spending by lower and middle-class population, is likely to accumulate the market share.
Moreover, the demand is increasing for low-effort on-the-go product types including ready to drink coffee due to crucial health applications like reducing the risk of type 2 diabetes. Key manufacturers aim to grow their business by developing new technologies to achieve stable, improved potency at an economical price.
Tier 1 companies comprise industry leaders with revenue of above USD 10 million capturing a significant share of 50% to 60% in the global business landscape. High production capacity and a wide product portfolio characterize these leaders.
These leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base. They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality.
Prominent companies within tier 1 include PepsiCo. The Coca-Cola Company Nestle S.A. JAB Holding Company Asahi Group Holdings, Ltd. McDonald’s Corporation Danone S.A. and few others.
Tier 2 companies include mid-size players with revenue of USD 1 to 10 million having a presence in specific regions and highly influencing the local commerce. These are characterized by a strong presence overseas and strong business knowledge.
These players in the arena have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Dunkin’ Brands Group, Inc. Suntory Beverage & Food Lotte Chilsung Beverage Co. Ltd. Dr. Pepper Snappel Group. Starbucks Unilever Ajinomoto General Foods Inc. Monster Beverage Co., and others.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche economies having revenue below USD 1 million. These companies are notably oriented towards fulfilling local demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized ecosystem, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
The following table shows the estimated growth rates of the significant three geographies sales. USA, Germany and India are set to exhibit high consumption, recording CAGRs of 2.3%, 2.9%, and 4.2% respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 2.3% |
| Germany | 2.9% |
| India | 4.2% |
In the United States, consumers are experiencing a shift in the way they consume technology as well as beverage. Companies are using artificial intelligence and machine learning to enable consumer tastes, previous choices, habits and provide tailored recommendations.
For instance, Starbucks has opted to use AI in its operations by recommending drinks to customers by the use of an app that is programmed to understand the customer’s habits.
This technology-based approach is also evident in unique specialty home brew café-style kits for consumers to brew their own beverages at home. The trend corresponds to the increase in convenience and uniqueness; every customer will feel special and thus loyal to the brand.
To ensure they meet the European Union specifications for food labeling,82 the country’s health-conscious consumers continue to push for gourmet coffee that is sugar-free, vegan, and plant-based.
Asahi Group Holdings and domestic players are offering new categories of dairy-free beverages such as almond, oat and soymilk, which are smooth in texture but low in guilt. Some of them focus on the quality of ingredients and simplicity of their processing that became a trend for those who pay attention to what they eat and drink.
Due to government measures emphasizing on low sugar intake, sugar-free version using natural products like stevia and erythritol has come up strongly which supports the wellbeing concept.
After considering the priority aspects of price and local references, more focused on certain Indian preferences, the tendencies in the industry are emerging in India. Food producers are spicing up products with the additive either in spices of cardamom, cinnamon, and turmeric for flavor that has a familiar taste but with functional value.
For instance, drinks containing turmeric emphasize on such benefits as boosting the immune system, which is important for conscious Indians. PepsiCo and regional brands have also targeting the fuze of the product and pricing strategies that could support that would make these beverages affordable to middle income earner hence a large market.
| Segment | Espresso-Based (Coffee Variety) |
|---|---|
| Value Share (2024) | 29.6% |
Espresso-based beverages are used because they are strong flavoured and they cut through most food types. Due to the concentration they provide, they form the foundation of other beverages like some latte drinks, cappuccinos and mocha.
For example, Starbucks company’s bottled espresso individualizes its sale by providing clients with something as simple as black to something creamy and something sweetened. This flexibility also makes this beverage popular among mere tykes who just take a glass of wine and the real coffee lovers.
Moreover, majority of them are Espresso-based products contain a higher caffeine content as compared to its counterparts; therefore, they are appropriate for consumers who still want an energy boost in a small package.
| Segment | Caramel (Flavour) |
|---|---|
| Value Share (2024) | 29.6% |
Due to its smooth buttery taste and a strong overriding sense of sweet, caramel is widely popular among lovers of dense flavors. There is an ideal synergy with the bitter profile of coffee; it becomes sweet that will appeal to most consumers.
Seasonal products such as the salted caramel or caramel mocha has been spokesperson to excitements amid consumers, especially during…Thus, seasonal products such as salted caramel and caramel mocha in the refrigerator has been a spokesperson as regards excitant among consumers, specifically during festive seasons.
For instance, products ranging from Dunkin and monster beverages have implemented caramel as standard and seasonal products thus it is a staple bestseller in regions.
Realizing the potential that lies in the consumption of ready to drink coffee beverages, the market is competitive with the some of the key players including PepsiCo, The Coca Cola Company, Nestle S.A. Heading, JAB Holding Company, Asahi Group Holdings, Ltd., McDonald’s Corporation and Danone S.A vying for a greater market share.
Product differentiation, expanding to new geographical locations and strategic advertising campaigns are some of the fundamental business level strategies. For example, Pepsi has entered such strategic alliances with Starbucks to introduce its successful RTD coffee range, while COCA-COLA has bought AdeS and Fair life to improve its dairy-based coffee products.
Nestle S.A. with Portfolio Products such as Nescafé Dolce Gusto and Starbucks by Nescafé is also prominent in different some areas. With a view to expanding their coffee brands to the globe, JAB Holding Company has invested massive amounts in some of the coffee brands including Peet’s, Stumptown, and Caribou Coffee.
New Zealand’s Asahi Group Holdings, Ltd. has entered into the RTD coffee category through a takeover of 3 Squares Cafe and McDonalds Corporation has leveraged on their current consumers for McCoffee. Finally, Danone S.A applies the “Oat” theme to capture the consumer’s health conscious market in the market.
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2024) | USD 37 billion |
| Projected Market Size (2034) | USD 55.4 billion |
| CAGR (2024 to 2034) | 4.1% |
| Base Year for Estimation | 2023 |
| Historical Period | 2019 to 2023 |
| Projections Period | 2024 to 2034 |
| Quantitative Units | USD billion for value and million liters for volume |
| Coffee Varieties Analyzed (Segment 1) | Black Coffee, Espresso-Based, Specialty Coffees, Coffee Concentrates |
| Caffeine Content Analyzed (Segment 2) | Regular, Decaffeinated |
| Packaging Types Analyzed (Segment 3) | Glass Bottle, Cans, Plastic Bottles, Pouches, Others |
| Flavours Analyzed (Segment 4) | Unflavoured/Classic/Original, Flavoured (Vanilla, Hazelnut, Caramel, Chocolate, Others) |
| Sales Channels Analyzed (Segment 5) | Food Service, Physical Retail, Travel Retail, Online Retail |
| Regions Covered | North America; Latin America; Europe; Middle East and Africa; East Asia; South Asia; Oceania |
| Countries Covered | United States, Canada, Brazil, Germany, France, United Kingdom, Italy, China, Japan, India, South Korea, Australia, UAE, South Africa |
| Key Players influencing the RTD Coffee Market | PepsiCo, The Coca-Cola Company, Nestle S.A., JAB Holding Company, Asahi Group Holdings, McDonald’s Corporation, Danone S.A., Dunkin’ Brands Group, Suntory Beverage & Food, Lotte Chilsung Beverage, Dr. Pepper Snapple Group, Starbucks, Unilever, Ajinomoto General Foods, Monster Beverage Co. |
| Additional Attributes | Dollar sales growth driven by premium flavored beverages, espresso-based offerings leading volume sales, caramel flavor expanding across retail formats, convenience packaging formats fueling on-the-go consumption, online and travel retail contributing to global market access, regional demand surging in Asia-Pacific and Latin America. |
| Customization and Pricing | Customization and Pricing Available on Request |
Key Coffee Varieties like Black Coffee, Espresso-Based, Specialty Coffees, and Coffee Concentrates are included in the report.
By Caffeine Content industry has been categorised into Regular and Decaffeinated.
Key Packaging Types such as Glass Bottle, Cans, Plastic Bottles, Pouches and others are included in the report.
By Flavour industry has been categorised into Unflavoured/Classic/Original, Flavoured (Vanilla, Hazelnut, Caramel, Chocolate and Others).
Sales channels like Food Service Physical Retail, Travel Retail and Online Retail are included in the report.
Industry analysis has been carried out in key countries of North America, Latin America, Europe, Middle East and Africa, East Asia, South Asia, and Oceania
Rise of cold brew and nitro coffee and the expansion of convenient on-the-go options.
The market is expected to be valuated at USD 37 billion by 2034.
The India is leading with a CAGR of 4.2% in 2024.
USA is expected to record a growth of 16.1% from 2024 to 2034.
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