Ready-to-drink (RTD) Coffee Beverage Market to Reach $53.5 Billion, Globally, by 2032 at 5.0% CAGR: Allied Market Research
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Prime determinants of growth
The convenience and portable nature of ready-to-drink (RTD) coffee has significantly fueled market demand in recent years. RTD coffee offers consumers a quick and hassle-free solution, which eliminates the need for brewing or waiting in coffee shops. The on-the-go lifestyle of modern consumers aligns perfectly with the grab-and-go concept of RTD coffee, providing a convenient energy boost for busy individuals. The portable packaging of RTD coffee, typically in cans or bottles, caters to the need for mobility and flexibility of consumers globally. Moreover, innovative paper and cardboard packaging have created significant opportunities in the RTD coffee market by addressing environmental concerns and appealing to eco-conscious consumers. Thus, the shift toward eco-friendly packaging aligns with global efforts to reduce plastic waste and promotes a positive brand image, that is expected to result in increased customer loyalty and expansion of RTD coffee beverage market share in the coming years.
Report coverage & details:
The cold brew RTD segment to maintain its leadership status during the forecast period
By product type, the cold brew RTD segment held the highest market share in 2022, accounting for more than two-thirds of the global ready-to-drink coffee market revenue and is estimated to maintain its leadership status during the forecast period. Cold brew RTD coffee holds dominance in the market owing to the unique flavor profile, smoother taste, and lower acidity of cold brew ready-to-drink coffee compared to traditional hot-brewed coffee. The cold brewing process involves steeping coffee grounds in cold water for an extended period, resulting in a less bitter and more concentrated beverage. This method aligns with consumer preferences for refreshing and less acidic options. Surge in health-conscious consumers seeking lower-calorie and less sugary alternatives also contributes to the popularity of cold brew RTD coffee, making it a preferred choice in the rapidly growing RTD coffee market.
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The dairy segment to maintain its leadership status during the forecast period
By cream content, the dairy-based segment held the highest market share in 2022, accounting for more than four-fifths of the global ready-to-drink coffee market and is estimated to maintain its leadership status during the forecast period. Dairy-based creams, such as milk or creamers, provide a familiar and comforting taste that resonates well with a broad consumer base. Moreover, dairy-based ready-to-drink options cater to individuals seeking a traditional coffee experience, making them a preferred choice for a wide range of ready-to-drink coffee consumers who appreciate the indulgence and smoothness that dairy-based creams bring to their on-the-go coffee consumption.
The bottle segment to maintain its leadership status during the forecast period
By packaging, the bottle segment held the highest market share in 2022, accounting for more than two-fifths of the global ready-to-drink coffee market and is estimated to maintain its leadership status throughout the forecast period. The sealed, portable nature of bottles ensures the preservation of freshness and flavor, while also providing a secure, spill-proof solution for consumers on the move. Bottled RTD coffee aligns with the fast-paced, on-the-go lifestyle, offering a hassle-free and efficient way to enjoy coffee without the need for additional accessories. In addition, the transparency of bottles allows consumers to visually assess the product, enhancing trust and appeal. All such factors contribute to the widespread popularity of bottled packaging in the RTD coffee beverage market.
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The supermarkets-hypermarkets segment to maintain its leadership status during the forecast period
By distribution channel, the supermarkets-hypermarkets segment held the highest market share in 2022, accounting for more than one-third of the global ready-to-drink coffee market and is estimated to maintain its leadership status during the forecast period. Consumers prefer purchasing ready-to-drink coffee from supermarkets and hypermarkets, owing to the convenience, variety, and accessibility these retail environments offer in recent times. Supermarkets and hypermarkets typically provide a one-stop shopping experience, allowing consumers to easily find a diverse selection of RTD coffee brands, flavors, and formulations in one location. The extensive shelf space and strategic product placement in these stores enhance visibility, enabling consumers to explore different options. Furthermore, the ability to compare prices, read product labels, and take advantage of promotional offers contributes to the appeal of purchasing RTD coffee in supermarkets and hypermarkets, making it a convenient and efficient choice for consumers seeking quick and accessible coffee solutions.
North America to maintain its dominance by 2032
Based on region, North America held the highest market share in terms of revenue in 2022 and is expected to dominate the market during the forecast period. The fast-paced lifestyles prevalent in North America align well with the convenience offered by RTD coffee, making ready-to-drink coffee a popular choice for on-the-go consumers. The culture of takeaway and a strong coffee-drinking tradition contribute to the acceptance of convenient coffee options. In addition, a strong market presence of well-established RTD coffee brands, continuous product innovations, and aggressive marketing campaigns have created widespread awareness and acceptance of RTD coffee beverages. The diverse consumer base in the region also benefits from a wide array of flavors and formulations available, catering to various taste preferences of consumers. Moreover, the combination of lifestyle, cultural openness to convenience, and a dynamic RTD coffee beverage market presence contribute to the higher preference for RTD coffee products in North America.
Leading Market Players: -
The report analyzes government regulations, policies, and patents to provide information on the current market trends and suggests future growth opportunities globally. Furthermore, the study highlights Porter's five forces analysis to determine the factors affecting market growth.
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