RTD coffee continued to perform well in 2018, being especially popular among younger generations, who are more likely to reject regular hot coffee due to its bitter taste. Manufacturers have recognised this and have changed their marketing strategies to focus on this demographic by launching products with added benefits.
Cold brew coffee, which unlike iced coffee is made without heat, thus reducing acidity and providing a more natural sweet taste, is growing in popularity. In 2018, cold brew coffee registered strong growth across the country, mainly due to its existing health halo, intense caffeine concentration and unique flavour.
The convenience of RTD coffee, the latest marketing efforts from Swiss players and a widening variety of flavours have all contributed to the increased popularity of this beverage. However, distribution is currently an obstacle to growth.
Emmi continued to dominate RTD coffee in Switzerland in 2018. This domestic manufacturer is expanding its product range and embracing the dairy-free milk trend, launching both lactose-free light coffees and lactose-free cappuccino RTD coffees.
Innoprax, which offers the Lattesso brand, recorded strong volume and value growth in the off-trade over the review period. The company is investing in a wider range of products, having launched Cannabis, Macchiato, Sport and Fit RTD coffees, focusing on younger consumers in order to support its further growth.
The international coffee company Starbucks is struggling to gain share in Switzerland as RTD coffee consumers are seeking smaller independent brands or are continuing to purchase private label offerings. Rising consumption of Swiss products and a general trend towards avoiding large corporations are making growth difficult to achieve for the company.
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