Market Size of ready to drink coffee Industry
| Icons | Lable | Value |
|---|---|---|
|
Study Period | 2018 - 2030 |
|
Market Size (2024) | USD 23.67 Billion |
|
|
Market Size (2030) | USD 32.51 Billion |
|
Largest Share by Soft Drink Type | Iced coffee |
|
|
CAGR (2024 - 2030) | 5.43 % |
|
Largest Share by Region | Asia-Pacific |
Major Players |
||
|
||
|
*Disclaimer: Major Players sorted in no particular order |
Ready to Drink Coffee Market Analysis
The Ready to Drink Coffee Market size is estimated at 23.67 billion USD in 2024, and is expected to reach 32.51 billion USD by 2030, growing at a CAGR of 5.43% during the forecast period (2024-2030).
23.67 Billion
Market Size in 2024 (USD)
32.51 Billion
Market Size in 2030 (USD)
3.90 %
CAGR (2018-2023)
5.43 %
CAGR (2024-2030)
Largest Segment by Soft Drink Type
27.67 %
value share, Iced coffee, 2023
Iced Coffee is one of the most popular go -to caffeinated beverage owing to growing inclination among youth and innovation of flavors alongside variants without added sugar.
Largest Region
64.67 %
value share, Asia-Pacific, 2023
Owing to growing level of production in countries like Vietnam and Indonesia coupled with rising popularity of caffeinated beverages to enhance their mental alertness and focus.
Fastest-growing segment by Soft Drink Type
6.40 %
Projected CAGR, Cold Brew Coffee, 2024-2030
Cold brew coffee is growing in popularity owing to rising innovation with launch of low caffeine and calorie and zero added sugar versions catering to the health-conscious consumers.
Fastest-growing region
10.65 %
Projected CAGR, South America, 2024-2030
Owing to growing level of consumption and innovation and better marketing strategies, RTD coffee brands are observed to be gaining a better foothold in the market.
Leading Market Player
18.95 %
market share, PepsiCo, Inc., Inc.
PepsiCo, Inc. is one of the largest global food and beverage company, and has high level of penetration owing to its strict adherence to regulations and governance principles.
The growing trend for on-the-go beverages globally resulted in higher sales
- RTD coffee's popularity stems from its convenience and the wide array of flavors it is available in globally. With busier lifestyles, on-the-go consumption has surged, and RTD coffee caters perfectly to this trend. Its appeal extends beyond convenience. Moreover, its ability to satisfy diverse coffee preferences has been pivotal in its growth. Thus, the RTD coffee market witnessed a notable growth of 9.87% by value in 2023 compared to 2021.
- Among RTD coffee types, cold brew experienced the highest growth. Cold brew, with its lower acidity (than hot brew coffee) and inherent sweetness, with or without sugar, appeals to consumers, especially those with diabetes. In 2022, the global diabetic population surpassed 537 million. This factor contributed to the growth of the segment, as more consumers purchased cold brew coffee. Thus, the segment recorded an impressive CAGR of 4.41% by value from 2018 to 2023.
- Off-trade channels, particularly online platforms, dominate RTD coffee distribution. The online channel is the fastest-growing distribution channel, and it is projected to achieve a CAGR of 6.63% by volume from 2024 to 2030. This growth is fueled by increasing internet penetration, which reached 5.3 billion users, accounting for 65.7% of the global population as of October 2023. Online platforms offer comprehensive information, including ingredients, nutrition facts, and customer reviews, empowering consumers to make informed RTD coffee choices.
Understand The Key Trends Shaping This Market
The robust consumption of RTD coffee amongst all age groups drives market growth
- From 2021 to 2023, the global RTD coffee market witnessed a 9.12% growth in value. This surge can be attributed to a consumer shift toward convenient, on-the-go options fueled by rapid urbanization and industrialization. As of 2023, the RTD coffee segment commanded a 3.49% market share in the global soft drinks market.
- As of 2023, the Asia-Pacific region emerged as the dominant player in the RTD coffee market, both in terms of value and volume. Projections indicate a 5.03% CAGR by value for the region between 2024 and 2030. Japan, China, and South Korea stood out as the key markets, collectively accounting for 82.53% of the region's RTD coffee value sales in 2023. Notably, Japan, the fifth-largest global importer of coffee, consumed a staggering 433 million tons in 2021-2022.
- North America holds the second-largest share of the RTD coffee market. This beverage has gained significant popularity, particularly among the younger demographic in countries like the United States and Canada. In 2022, 30% of Americans opted for iced coffee, cold brew, or other chilled variants. Breaking it down further, 43% of millennials and 38% of Gen Z respondents reported consuming iced coffee, compared to 24% of baby boomers.
- The Middle East is poised to witness the highest growth rate in the RTD coffee market, with an anticipated CAGR of 14.4% by value during the 2024-2030 period. This surge can be attributed to a rising demand for specialty coffees and government initiatives aimed at boosting coffee consumption. For instance, the Saudi Coffee Company plans to invest nearly USD 320 million over the next decade, aiming to ramp up the country's domestic coffee production from 300 to 2,500 tonnes annually.
