Japan RTD Coffee Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Japanese RTD Canned Coffee Market is Segmented by Packaging Type (Bottle and Can) and Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retail Stores, Specialty Stores, and Other Distribution Channels).

Japan RTD Coffee Market Size

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Japan Ready-to-Drink (RTD) Coffee Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 3.50 %
Market Concentration Low

Major Players

Japan Ready-to-Drink (RTD) Coffee Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Japan RTD Coffee Market Analysis

The Japan ready-to-drink (RTD) coffee market is projected to register a CAGR of 3.5% during the forecast period.

  • Japanese consumers have a strong affinity for coffee, and the trend of valuing convenience has led to the growing popularity of ready-to-drink (RTD) coffee beverages. Canned cold brew and nitro coffees are particularly favored among younger consumers, while millennial and Gen Z consumers are driving the demand for flavored, healthy, sustainable, and plant-based RTD coffee options. Specialty coffee brands are also innovating their RTD coffee products, creating intense competition in the market. The wide availability of canned coffee in vending machines, convenience stores, and other retail channels is boosting the growth of the market.
  • Furthermore, low-calorie or low-sugar canned coffee is becoming increasingly popular, especially among health-conscious consumers or those looking to manage their weight. Aggressive marketing campaigns targeted toward young consumers have fueled the popularity of RTD coffee among the millennial population. Japanese consumers enjoy a diverse range of coffee varieties and appreciate premium quality coffee with rich flavors, driving manufacturers to expand into the premium coffee range.
  • For example, Suntory Boss offers iced mocha in a can, made from premium quality coffee beans with a rich chocolate flavor. The rising number of Japanese consumers incorporating coffee into their daily life and their increasing interest in new taste profiles in RTD coffee is expected to drive sales growth in the country. According to the All Japan Coffee Association (AJCA), Japan consumed 423.71 million tonnes of coffee in 2021, and this increased to 432.87 million tonnes in 2022.

Japan RTD Coffee Market Trends

Increased Consumption of Coffee Based RTD Beverages

  • The consumption habits of Japanese consumers, influenced by Western trends, have led to a surge in sales of on-the-go and ready-to-drink (RTD) beverages, including coffee. This trend is being driven by the aggressive promotion of RTD coffee and the ease of accessibility of canned beverages in Japan.
  • Canned and RTD coffee beverages, such as milk-based and cold brew, are becoming increasingly popular among Japanese consumers due to their convenience and compatibility with their fast-paced lifestyles. In response, key players in the industry are introducing culturally relevant and unique flavored beverages tailored to Japanese interests and tastes. Canned coffee is now a popular way for Japanese consumers to kick-start their day, with hot and cold ready-to-drink coffee available in vending machines across the country.
  • The shift towards busier schedules and less time for traditional grocery shopping has resulted in a growing demand for on-the-go RTD tea and coffee. According to the Japan Soft Drink Association and Kirin Holdings Company, the production volume of RTD coffee in Japan increased from 3.05 million kg in 2016 to 3.31 million kg in 2019. However, the COVID-19 pandemic led to a shortfall in production volume in 2020, which decreased to 3.04 million kg. Despite this setback, the popularity of RTD coffee in Japan is expected to continue to grow in the future.
Ready-to-Drink (RTD) Coffee Market - Coffee Consumption, in Million Tons, Japan, 2017-2021

Bottled RTD Coffee Gaining Momentum in the Country

  • Japan is a country where both glass bottles and PET bottles are widely used, but PET bottles are preferred over traditional glass bottles due to technological advancements that have enabled them to serve multiple purposes beyond just holding beverages. These bottles aid in improving the shelf life and preservation of the products and are available in cost-effective formats. 
  • The availability of a variety of canned coffee beverages in vending machines and the increased number of manufacturers offering ready-to-drink coffee beverages in attractive packaging has boosted the sales of bottled RTD coffee. The on-the-go lifestyle and enhanced convenience have led consumers to opt for ready-to-drink coffee. Furthermore, the increased consumption of coffee among millennials and the adoption of convenient products like bottled, ready-to-drink coffee are supporting the growth of the market.
  • PET-bottled coffee has gained popularity among the working population in Japan because it is portable, lightweight, and packaged stylishly. PET bottled coffee has expanded its consumer base in Japan as the unit price is comparatively lower than canned products. Bottled RTD coffee manufacturers offer a wide range of PET bottled coffee, intensifying competition among existing players and making it difficult to establish a distinctive positioning in the segment. 
  • For instance, the Asahi Group Holdings, Ltd. is leveraging the popularity of "foam coffee" in Japan by promoting its Wonderful Wonda coffee line, which enables consumers to create foam by shaking the bottle. This innovative product has gained popularity among coffee enthusiasts and is an example of how companies are trying to differentiate their products in the competitive bottled RTD coffee market in Japan. As such, it showcases the importance of product innovation and marketing strategies in the success of bottled RTD coffee in Japan.

Ready-to-Drink (RTD) Coffee Market - Number of Vending Machines, By Type, in Thousands, Japan, 2021

Japan RTD Coffee Industry Overview

The Japan ready-to-drink (RTD) coffee market is characterized by a high degree of fragmentation due to the presence of both international and regional players, as well as numerous local manufacturers. Some of the major players in the market include Starbucks Corporation, Coco-Cola Company, Lotte Corporation, Asahi Group Holdings, Ltd., and Suntory Holdings Limited, among others. These key players are implementing various strategies such as product innovation, expansion, marketing, and others to gain a prominent share of the market.

In addition, manufacturers of ready-to-drink coffee in Japan are focusing on offering new and unique flavored coffee to attract consumers. They are also developing new products, such as plant-based beverages, to cater to the growing demand for vegan and health-conscious options. Overall, the Japan RTD coffee market is highly competitive, and manufacturers are constantly looking for new ways to stand out in the market and gain a larger share of the growing consumer demand.

Japan RTD Coffee Market Leaders

  1. Starbucks Corporation

  2. Asahi Group Holdings, Ltd.

  3. The Coco-Cola Company

  4. Suntory Holdings Limited

  5. Lotte Corporation

*Disclaimer: Major Players sorted in no particular order

Japan Ready-to-Drink (RTD) Coffee Market Concentration
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Japan RTD Coffee Market News

  • June 2022: Starbucks Corporation announced the opening of a new drive-thru store in Togane City, Japan. Starbucks collaborated with Togane City and Sanyu Plant Service Corporation to focus on coffee ground circularity. As a part of the collaboration, the used coffee grounds from the new drive-thru store will be recycled into cattle feed, and the milk from participating dairies will be used to create handcrafted beverages in Starbucks.
  • April 2021: Asahi Group Holdings, Ltd., a Japan-based manufacturer of beer, spirits, soft drinks, and other food and beverage, acquired Allpress Espresso, a New-Zealand based coffee roaster & RTD producer. Allpress offers coffee to cafes, restaurants, and individual customers in New Zealand, Australia, Japan, the United Kingdom, and Singapore. The company aimed to expand its product portfolio to cater to the different needs of consumers.
  • February 2021: Nestlé launched a range of Nescafé lattes in Japan market. The new Nescafé plant-based latte range includes on-the-go, ready-to-drink beverages, soluble mixes, and capsules. The company offers coffee lattes made from plant-based ingredients and are available in two varieties: almond latte and oat latte.

Japan RTD Coffee Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Packaging Type

      1. 5.1.1 Bottle (Pet/Glass)

      2. 5.1.2 Can

    2. 5.2 Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets

      2. 5.2.2 Convenience Stores

      3. 5.2.3 Online Retail Stores

      4. 5.2.4 Specialty Stores

      5. 5.2.5 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Starbucks Corporation

      2. 6.3.2 Asahi Group Holdings Ltd.

      3. 6.3.3 The Coco-Cola Company

      4. 6.3.4 Lotte Corporation

      5. 6.3.5 Unilever PLC

      6. 6.3.6 Sapporo Holdings Ltd (Pokka Group)

      7. 6.3.7 Suntory Holdings Limited

      8. 6.3.8 UCC Holdings Co., Ltd.

      9. 6.3.9 Nestlé S.A.

      10. 6.3.10 Ezaki Glico Co., Ltd.

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Japan RTD Coffee Industry Segmentation

Ready-to-drink (RTD) coffee is a packaged coffee beverage that is ready for consumption and is sold in prepared form in a can or a bottle. 

The scope of Japan's ready-to-drink (RTD) coffee market includes segmentation of the market based on packaging type and distribution channel. By packaging type, the market is segmented as bottle and can. By distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, online retail stores, specialty stores, and other distribution channels. 

For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

Packaging Type
Bottle (Pet/Glass)
Can
Distribution Channel
Supermarkets/Hypermarkets
Convenience Stores
Online Retail Stores
Specialty Stores
Other Distribution Channels
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Japan RTD Coffee Market Research FAQs

The Japan Ready-to-Drink (RTD) Coffee Market is projected to register a CAGR of 3.5% during the forecast period (2024-2029)

Starbucks Corporation, Asahi Group Holdings, Ltd., The Coco-Cola Company, Suntory Holdings Limited and Lotte Corporation are the major companies operating in the Japan Ready-to-Drink (RTD) Coffee Market.

The report covers the Japan Ready-to-Drink (RTD) Coffee Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Ready-to-Drink (RTD) Coffee Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Japan RTD Coffee Industry Report

Statistics for the 2024 Japan RTD Coffee market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan RTD Coffee analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Japan RTD Coffee Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)