RTD coffee recorded another year of healthy single-digit value growth in 2018, making it one of the most dynamic categories in the Austrian soft drinks market. RTD coffee benefits from several favourable demand factors, which are expected to sustain current growth rates over the entire forecast period.
One important demand driver for RTD coffee will likely be a broadening consumer base as the share of Austrian consumers at least occasionally drinking an RTD coffee further increases. The growing presence of RTD coffee in supermarket aisles will be instrumental in expanding its acceptance beyond the traditional core target demographic of millennials to other age groups.
Another important factor benefiting sales of RTD coffee will come from consumers starting to drink RTD coffee more regularly outside the summer months. While the warm summer period will remain the most important season, demand is expected to be further boosted by a growing share of consumers drinking RTD coffee yearlong on a regular basis.
The Austrian retail landscape for RTD coffee remains essentially tripartite. Firstly, there are the traditional dairy product manufacturers, which typically entered the category early and still continue to enjoy first mover advantage.
The second type of player in Austrian RTD coffee consists of traditional coffee roasting powerhouses, such as Jacobs Douwe Egberts AT and Nestlé Österreich, which have expanded their portfolio to include ready-to-drink varieties.
Finally, the success of RTD coffee as a whole has led major Austrian grocery chains to invest in their own private label ranges. Examples here include Spar Österreichische Warenhandels AG with its S-BUDGET and particularly successful Spar enjoy lines; or Unimarkt, which recently introduced Bio Latte Macchiato, an organic variety, to its Jeden Tag private label in addition to its more traditional Cappuccion and Latte Macchiato varieties.
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This industry report originates from Passport, our Soft Drinks market research database.