Ready-to-drink coffee market to grow by 7.73% to 2027
The ready-to-drink coffee market size is projected to increase by $11,781.01 million and the market size is estimated to grow at a CAGR of 7.73% between 2022 and 2027, according to Technavio.
The growing competition in the market is compelling companies to adopt various growth strategies such as promotional activities and spending on advertisements to improve the visibility of their services.
Technavio’s report analyses the market’s competitive landscape. It offers information on several market companies including – 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 Chilsung Beverage Co. Ltd., 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.
Ready To Drink Coffee Market – Market Dynamics
The rising demand for on-the-go refreshments is a key factor driving market growth. This is due to the fast-paced world where people’s hectic schedules have fuelled the demand for quick and convenient solutions, especially in the food and beverage sector.
RTD coffee has emerged as a popular choice for on-the-go consumption, meeting the need for portability and ease of access.
These pre-packaged beverages require no preparation, making them a convenient choice for individuals with busy routines.
Beyond convenience, consumers also value the refreshing and invigorating nature of RTD coffee, providing an instant pick-me-up throughout their day.
This preference for on-the-go refreshments is particularly prominent in urban areas, where busy lifestyles and longer work hours drive the need for quick and accessible beverage options. Thus, these factors are expected to drive market growth during the forecast period.
The growing number of product innovations is a major trend in the market. The RTD coffee market is witnessing a major trend toward increased product innovation, with major players prioritising new product development to remain competitive.
For example, in September 2022, a partnership between Sinopec’s Easy Joy and TH International Limited launched co-branded ready-to-drink coffee products in China.
Additionally, New Delhi-based start-up Sleepy Owl expanded its product line in May 2022 by launching ready-to-drink cold coffee cans featuring flavours such as caramel, hazelnut, and classic. These product innovations increase brand awareness and meet the growing demand for diverse and convenient coffee options in the market.
Thus, such product launches and innovations are expected to drive the Ready to Drink Coffee Market during the forecast period.