The value of RTD coffee grew strongly again in 2021. Instead of being negatively impacted by the COVID-19 pandemic and associated lockdowns, RTD coffee – traditionally referred to in Australia as iced coffee – has thrived, delivering even stronger growth rates than previously.
The packaging of RTD coffee in Australia is dominated by PET and HDPE bottles, with a smaller presence of cardboard cartons. They are sold in a variety of sizes, from 2-litre family sizes commonly available in supermarkets, to 500ml and 750ml single serves.
Much of the growth of RTD coffee in recent years has involved the promotion of a version of coffee culture to consumers and occupations who do not have easy access to either cafés or coffee machines; to consumers who are unable to sit down and enjoy a coffee and must consume it quickly and while on the go. This is a strategy that Bega (previously Lion) has followed with its Dare brand for close to a decade.
Whilst other soft drinks categories are expected to take a long time to recover, since their consumers are likely to continue working from home, this is not the case for the working-class demographic that remains RTD coffee’s key target market. Value growth rates are expected to be strong over the forecast period.
The tastes of RTD coffee consumers have become more sophisticated in recent years. Consumers have not only been exposed to barista-brewed coffees through cafés, but also to more barista-styled RTD coffees.
Although the likelihood of the introduction of a sugar tax in Australia is low, it remains an outside possibility. Whilst much depends upon how a sugar tax might be designed, it is possible that it may actually stimulate RTD coffee’s growth, as the sugar tax currently recommended by the Australian Medical Authority excludes dairy products.
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Understand the latest market trends and future growth opportunities for the RTD Coffee industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the RTD Coffee industry in Australia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Includes packaged ready-to-drink coffee, consumed either hot or cold, made using a base of either brewed coffee or coffee extract. Excludes all coffee flavoured milk drinks that primarily target children, or where coffee is one of a number of flavours within the brand range. Leading brands in off-trade volume include Georgia, Nescafé and Suntory Boss.See All of Our Definitions
This report originates from Passport, our RTD Coffee research and analysis database.
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