In Western Europe, RTD coffee is still a niche market but it is expected to be one of the most dynamic segments of soft drinks in the near future. While German-speaking countries remain the category’s core business, strong growth is coming from immature markets. In the last two years, many new brands and varieties have been rolled out, such as cold brew coffee and nitro brew options, attracting new targets and meeting different consumer needs.
This report comes in PPT.
Although RTD coffee remains a niche market with USD1.1 billion retail value sales in Western Europe, it is expected to be one of the most dynamic categories over the forecast period, recording a CAGR of 7% in both off-trade volume and value terms. Germany confirms its leading position with 42% of total retail volume sales in 2018, while Turkey, Spain and the UK also continue to register strong performances.
Consumers are ever-more aware about the effect of sugar and artificial ingredients on body health, pushing them to switch from classic soft drinks to healthier options. Nevertheless, healthy is not enough anymore, as consumers are looking to naturally functional beverages to boost their energy due to busier lifestyles, benefiting ready-to-drink coffee sales.
Millennials are changing the idea of traditional coffee. They are more likely to drink different varieties of coffee - from a classic hot coffee to nitro brew - on the basis of their everyday needs and times of the day. Thanks to their distinct proprieties and smooth taste, cold brew coffee and nitro brew have met more consumer needs than simple functionality, capturing new consumer targets.
Lactose-free options, new functional ingredients and exotic tastes are the way forward, allowing the RTD coffee category to capture a significant portion of new consumers. Success depends on the industry's ability to adapt its ranges to meet a new, diverse consumer demand.
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.See All of Our Definitions
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