The movement and travel restrictions imposed on New Zealand during its response to COVID-19, meant that supermarkets became the dominant distribution channel for the niche of RTD coffee in the country, with supermarket sales up by more than 60% year on year in the lead-up to, and during, the national lockdown. RTD coffee players have gradually gained traction and improved their distribution through supermarkets over the review period, and with negligible penetration through on-trade, the category was relatively shielded.
Weak consumer sentiment and decreasing disposable incomes due to an increasingly uncertain economic outlook is also likely to have impacted demand for the category. As such, discretionary spending pressures were felt in RTD coffee, which is viewed by consumers as more of a treat rather than a staple orientation found in competing soft drinks.
The competitive landscape of RTD coffee remains concentrated by smaller players dominating volume share under “others”, while Harpoon Cold Brew Ltd and Binggrae Co Ltd are the leading players, both holding double-digit volume share with their respective brands, Harpoon Cold Brew Coffee and A Café La. With these brands carrying higher unit prices, they held stronger share in value terms with Harpoon Cold Brew Coffee dominating.
Environmental and social credentials are increasingly becoming in-demand brand attributes as New Zealanders place a greater focus on the how the products they consume impact the environment, and what action companies will take to minimise potential harm as result of production. As observed in coffee under hot drinks, the use of sustainably-sourced ingredients presents a significant opportunity for RTD coffee to differentiate itself in an increasingly crowded and competitive landscape in New Zealand moving forward, particularly in terms of Fairtrade and supporting coffee bean farmers which are marketable attributes.
While demand for RTD coffee is set to return to double-digit growth rates heading into the forecast period, its performance will not be as impressive when compared to the review period. This is likely to be linked to uncertainty in terms of economic recovery following the pandemic which could take the near entirety of the forecast period, and a likely move away from premium-positioned brands in line with declining levels of consumer discretionary spending.
The pandemic has fundamentally changed the way New Zealanders work and shop. With many consumers likely to continue to work remotely over the forecast period, consumption patterns will change.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the RTD Coffee industry in New Zealand 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 New Zealand, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our RTD Coffee research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page