Finland has seen a boom in non-dairy milk drinks such as oat, almond and soy milk. For example, an oat milk specifically for use in coffee has seen exponential growth in the last two years.
The unit prices of RTD coffee vary widely depending on the product type. The latest trendy launches often have a premium positioning and come in single-serve packaging, whilst there are also 1-litre multi-portion alternatives with a notably lower price per litre.
On-trade sales of RTD coffee are expected to keep growing, with a double-digit current value CAGR during the forecast period. Cold brew products have found their place in the on-trade channel, and their competitive prices have encouraged more consumers to buy RTD coffee instead of hot coffee.
Gustav Paulig was the clear leader in RTD coffee in off-trade value terms in 2018, with its Frezza brand. The company saw its actual value sales decline throughout the review period, although a rebound was seen in 2018, due to the launch of the company’s vegan Frezza almond and oat latte.
Second-ranked Starbucks and third-ranked Valio managed to gain value share throughout the review period. Their sales strategies have been very different, demonstrating the good growth potential available for various types of products.
Strong demand for non-dairy milk-based lattes boosted sales of Oatly’s Oatly Latte products, and the company was in sixth position in off-trade value terms in 2018. The trendy ingredients and sleek packaging are expected to remain in high demand in the forecast period, and could lead to an improved ranking for the company.
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This industry report originates from Passport, our Soft Drinks market research database.