RTD Coffee in Australia

PROSPECTS

Stronger coffee sees growth as consumers look for a quick energy hit

Functional drinks are seeing growth, with local consumers looking for a quick energy hit. As a result, growth is coming from stronger RTD coffee products, according to industry sources, and this is expected to continue.

Health and wellness not at the top of RTD coffee consumers’ minds

Consumers seek out RTD coffee for the taste and the functional benefit of providing an energy boost. An industry source indicates that Dare Raw did not exhibit a strong performance, as the regular Dare consumer did not appreciate the product’s lower sugar levels as well as the fact that RTD coffees are supposed to be a treat and indulgence for consumers.

Functionality the focus in the future

Much like across non-alcoholic drinks more generally, an industry source indicates that future innovation for RTD coffee may focus on the protein megatrend, with milk already being a natural source of protein. RTD coffees with health-promoting benefits may therefore be a focus for manufacturers looking to innovate over the forecast period.

COMPETITIVE LANDSCAPE

Lion dominates RTD coffee

Lion Pty has the leading brand Dare as well as the number three RTD coffee brand Farmers Union. Dare did not see any significant new product developments or innovation over the past year.

Parmalat Australia ranks second in RTD coffee

Number two player Parmalat Australia has the number two brand Ice Break as well as the number four brand Rush. In 2018 it launched the new Ice Break Bold Espresso, which contains three shots of coffee.

Frucor Suntory triples its volume share within RTD coffee

Over the course of the review period, Frucor Suntory tripled its RTD coffee volume share, thanks to the brand V Double Espresso. It has strong brand equity and is associated with providing consumers with an energy boost.

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