The significant reduction in opportunities for impulse purchases and on-the-go consumption as a result of the COVID-19 pandemic had a considerable negative impact on sales of RTD coffee in 2020. While home seclusion and more people engaged in remote working created potential for at-home consumption, many consumers preferred home-brewed coffee to RTD coffee because it is widely perceived to be fresher and to provide a more authentic taste.
RTD coffee continues to be under the control of two-major players with the undoubted leader being the Starbucks brand from Arla Foods Amba. With a well-established distribution network, supportive pricing and investment in innovation Starbucks continued to post strong gains in 2021 in both value and volume terms.
Forecourt retailers continued see its position as the main distribution channel for RTD coffee continue to erode in 2021. At the beginning of the review period the dominant distribution channel for RTD coffee was forecourt retailers, but the growing popularity of fresh coffee and the growing focus of petrol station owners on making a profit from coffee and snacks rather than from fuel sales negatively affected the development of sales through this channel.
It is expected that RTD coffee will continue to see steady growth in retail volume terms over the forecast period. Innovations in terms of packaging, flavours, as well as experiments with the composition and ingredients of products should all help to capture the interest of consumers, who have shown a willingness to invest in new novelties.
The main competition for RTD coffee comes from energy drinks and flavoured drinking milk products. However, with the burgeoning health and wellness trend there could also be some competition from milk alternatives over the forecast period.
It is expected that with the growing popularity of the category and all the efforts that were taken by Starbucks in expanding the distribution of RTD coffee in Russia that it could become an attractive niche for private label. Even though private label is not presented yet in RTD coffee, it has followed an aggressive policy in penetrating traditional soft drinks categories such as energy drinks, juice, carbonates, but also in niche areas such as milk alternatives.
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Understand the latest market trends and future growth opportunities for the RTD Coffee industry in Russia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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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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