In 2018, RTD coffee registered strong double-digit off-trade growth in both volume and current value terms due to the rising availability and variety of these products in grocery retailers. From 2016 onwards, a number of new brands were launched including Alin Concentrated Cold Brew Coffee by Telve Gida Madd Paz ve Uretim Dis Ticaret AS and Starbucks Frappuccino and Espresso by Shaya Kahve San ve Tic AS, a specialist coffee shop company.
Rising urbanisation and young population in the country will be an advantage for the growth of RTD coffee. Young urban Turks are becoming increasingly aware of different coffee types, such as latte and Frappuccino, as they are the dominant visitors of specialist coffee shops.
Over the forecast period, in off-trade current value terms, the average unit price of RTD coffee will continue to grow due to high inflation. However, at constant 2018 prices, it is expected to marginally decline with the availability of a more competitive environment, which is predicted to create price competition prompting companies to offer promotions.
In 2018, Nestlé Gida Sanayii AS maintained its leading position with its Nescafé Xpress brand, which continued to enjoy first mover advantage in the category. Nescafé Xpress also owns the strongest distribution and is widely available across grocery retailers.
In 2018, RTD coffee did not receive support in terms of television advertising. To increase consumer awareness and demand for this product, companies need to invest in television advertisements, launch promotional campaigns, and distribute their products more widely, not only to the key modern grocery retailers but also to traditional grocery retailers over the forecast period.
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