RTD Coffee Market Size was valued at USD 23.8 Billion in 2023. The RTD Coffee industry is projected to grow from USD 25.89 Billion in 2024 to USD 50.84 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.80% during the forecast period (2024 - 2032). The rising demand for convenient and on-the-go beverage options, and a growing preference for ready-to-drink products, are the key market drivers fueling the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for RTD Coffee is being driven by a shift in consumer lifestyles and preferences. Modern consumers, characterized by hectic schedules and an increasing demand for convenience, are gravitating towards products that offer ease of consumption without compromising on quality. RTD coffee caters to this demand by providing a ready-made, easily accessible beverage that eliminates the need for time-consuming coffee preparation. The fast-paced nature of contemporary lifestyles has led to a surge in the popularity of on-the-go products, making RTD coffee a convenient and practical choice for consumers who seek the rich flavors of coffee without the time investment required for traditional brewing methods.
The global surge in coffee culture and heightened awareness of diverse coffee offerings contribute significantly to the growth of the RTD coffee market. As coffee evolves from a simple caffeine fix to a sensory experience, consumers are becoming more discerning about the types and flavors of coffee they consume. RTD coffee, with its assortment of flavors, blends, and specialty options, aligns with this evolving coffee culture. The market is witnessing a transformation where consumers are not only seeking a quick caffeine boost but also a delightful and customized coffee experience. The rise of specialty coffee shops and the popularity of artisanal coffee varieties have created a favorable environment for the acceptance and growth of diverse RTD coffee products, catering to the refined tastes of the discerning coffee enthusiast.
Additionally, there is increasing focus on health and wellness among consumers. As individuals become more health-conscious, there is a growing demand for beverages that align with healthier lifestyle choices. RTD coffee manufacturers are responding to this trend by introducing products that cater to health-conscious consumers, such as low-sugar or sugar-free variants, and functional additives like vitamins, antioxidants, and plant-based ingredients.
The global rise in coffee culture is evident in the proliferation of specialty coffee shops and the expanding variety of coffee offerings. This growth is driven by an increasing number of consumers engaging in coffee-centric experiences and seeking diverse coffee options. As a result, it is anticipated that throughout the projection period, demand for RTD Coffee will increase due to the rising preference for RTD Coffee. Thus, driving the RTD Coffee market revenue.
The RTD Coffee Market segmentation, based on product type includes Cold Brew Coffee and Other RTD Coffee. The cold brew coffee segment dominated the market, accounting for more than half of market revenue. Cold brew coffee has gained traction due to its smoother taste profile and the perception of being a less acidic alternative to traditional hot-brewed coffee.
The RTD Coffee Market segmentation, based on Packaging Type includes Bottles, Cans, and Others. The cans segment dominated the market, accounting for above one-third of market revenue. This growth is attributed to factors such as recyclability and the ability to preserve the freshness of the beverage.
The RTD Coffee Market segmentation, based on distribution channels includes Supermarkets and Hypermarkets, Specialty Stores, Online Stores, and Others. The supermarkets and hypermarkets segment dominated the market, accounting for more than a quarter of market revenue. This is attributed to consumer preference for one-stop shopping and the convenience of finding a diverse range of products in these retail outlets.
Figure 1: RTD Coffee Market, by Distribution Channel, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American RTD Coffee market area will dominate this market due to its well-established coffee culture and a strong emphasis on innovation. The region has a mature and discerning consumer base that appreciates diverse coffee options, including ready-to-drink variants. The prevalence of coffee culture, with a high consumption rate of specialty and gourmet coffee, aligns with the evolving preferences of consumers seeking convenient yet high-quality beverages.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: RTD COFFEE MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe RTD Coffee market accounts for the second-largest market share driven by a combination of premiumization and sustainability trends. European consumers exhibit a penchant for premium and high-quality coffee experiences, leading to a robust demand for specialty RTD coffee products. Further, the German RTD Coffee market held the largest market share, and the UK RTD Coffee market was the fastest-growing market in the European region
The Asia-Pacific RTD Coffee Market is expected to grow at the fastest CAGR from 2023 to 2032. This is attributed to the region's rapid urbanization, changing lifestyles, and diverse consumer preferences. As urbanization accelerates, there is a surge in demand for convenient and on-the-go beverage options, making RTD coffee an ideal choice for busy urban dwellers. Moreover, China’s RTD Coffee market held the largest market share, and the Indian RTD Coffee market was the fastest-growing market in the Asia-Pacific region.
Leading market players are continually introduce new flavors, formulations, and types of RTD coffee to cater to diverse consumer preferences. This includes the development of unique blends, functional additives, and specialty offerings to differentiate their products in the market. Market participants are also adopting a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, Sustainability Practices mergers and acquisitions, higher investments, and collaboration with other organizations. To grow and survive in a more competitive and rising market climate, RTD Coffee industry must offer cost-effective items.
Actively engaging with consumers through social media, surveys, and feedback mechanisms is one of the key business tactics used by manufacturers in the global RTD Coffee industry to increase the market share. In recent years, the RTD Coffee industry has offered some of the most significant advantages to Consumers. Major players in the RTD Coffee market, including Starbucks Corporation, Nestle SA, The Coca-Cola Company, Arla Foods, Lotte Corporation, JAB Holdings, and others, are attempting to increase market demand by investing in product development to increase their product line and cater to diverse consumer needs.
Established in 1971 at Seattle's Pike Place Market, Starbucks, a global coffeehouse chain, originated as a purveyor of premium coffee beans, teas, and spices. Inspired by the maritime theme of "Moby-Dick," the company's roots reflect a commitment to quality and a nod to coffee trading history. The transformative moment came in 1983 when Howard Schultz joined, bringing Italian coffee culture inspiration. Evolving from a bean retailer to a coffeehouse in 1987, Starbucks expanded rapidly across the U.S. and globally, with a presence in Japan, Europe, and China. Boasting millions of weekly customers worldwide, Starbucks remains dedicated to fostering human connections, embodying its mission through every cup, conversation, and community engagement. In July 2021, Nestlé and Starbucks Corporation announced a collaboration to introduce Starbucks Ready-to-Drink (RTD) coffee beverages in selected markets across Southeast Asia, Oceania, and Latin America. The companies worked diligently to swiftly bring these coffee beverages to consumers, and the initiative was successfully launched in 2022.
Arla Foods, a Danish-Swedish multinational cooperative headquartered in Viby, Denmark, stands as a prominent player in the global dairy industry. Ranking as the fifth-largest dairy company worldwide, Arla Foods holds the distinction of being the largest producer of dairy products in Scandinavia and the United Kingdom. Formed through the merger of the Swedish dairy cooperative Arla and the Danish dairy company MD Foods on April 17, 2000, Arla Foods has evolved into a key player with a significant market presence. The company's name, derived from an archaic Swedish term for 'early (in the morning),' reflects its commitment to delivering quality dairy products to consumers from the outset of its formation. In April 2023, Arla Food announced to debut high-protein coffee and tea prototypes at Vitafoods Europe
RTD Coffee Industry Developments
September 2022: Sinopec's Easy Joy, a convenience store in China, collaborated with TH International Limited, the exclusive operator of Tim Hortons coffee shops in China, to introduce two co-branded ready-to-drink coffee products.
May 2022: Sleepy Owl, a New Delhi-based startup, expanded its product line by unveiling ready-to-drink cold coffee cans. The company diversified its offerings with three flavors – caramel, hazelnut, and classic – enhancing its brand accessibility and catering to a wider consumer base.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 23.8 Billion |
| Market Size 2024 | USD 25.89 Billion |
| Market Size 2032 | USD 50.84 Billion |
| Compound Annual Growth Rate (CAGR) | 8.80% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Packaging Type, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Starbucks Corporation, Nestle SA, The Coca-Cola Company, Arla Foods, Lotte Corporation, JAB Holdings, High Brew Coffee Inc., Asahi Group Holdings Ltd, Monster Energy Company, and Tim Hortons |
| Key Market Opportunities | The emphasis on health and wellness is a powerful driver influencing consumer choices in the beverage sector |
| Key Market Dynamics | Changing consumer lifestyles and preferences are driving the demand for RTD coffee |
Rtd Coffee Market Highlights:
Frequently Asked Questions (FAQ) :
The RTD Coffee Market size was valued at USD 23.8 Billion in 2023.
The global market is projected to grow at a CAGR of 8.80% during the forecast period, 2024-2032.
North America had the largest share in the global market
The key players in the market are Starbucks Corporation, Nestle SA, The Coca-Cola Company, Arla Foods, Lotte Corporation, and JAB Holdings.
The Cold Brew Coffee category dominated the market in 2023.
The Supermarkets and Hypermarkets Stores had the largest share in the global market.
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Research Analyst Level II I have about two years of experience working in the consumer goods and retail industries and i am a biotech graduate.a tech-savvy analytically focused professional with a strong capabilities in identification, concept generation, and strategy evaluation. i can produce data-driven solutions while fusing unusual viewpoints with original concepts. i have been extensively working on business case studies, competitive & comparative analyses, and strategic reports. my primary areas of experience include client management, financial analysis, supply chain evaluation, market entry strategy evaluation, and estimating and forecasting market size.
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