Ready-to-Drink (RTD) Coffee - Europe

The Ready-to-Drink (RTD) Coffee market in Europe has been experiencing significant growth in recent years.

Customer preferences: One of the key factors driving the growth of the RTD Coffee market in Europe is the increasing demand for convenience. With busy lifestyles and a growing preference for on-the-go consumption, consumers are seeking convenient and ready-to-drink options. RTD Coffee provides a quick and easy solution for consumers who want to enjoy their favorite coffee beverages without the need for brewing or preparation.

Trends in the market: In addition to convenience, there are several other trends that are shaping the RTD Coffee market in Europe. One trend is the rising popularity of cold brew coffee. Cold brew coffee is made by steeping coffee grounds in cold water for an extended period of time, resulting in a smooth and less acidic flavor profile. This trend is particularly popular among younger consumers who are looking for a refreshing and less bitter alternative to traditional hot coffee. Another trend in the market is the increasing demand for plant-based and healthier options. As consumers become more health-conscious, they are seeking RTD Coffee products that are made with natural ingredients and have reduced sugar content. This has led to the introduction of new products that cater to these preferences, such as RTD Coffee beverages made with almond milk or other plant-based alternatives.

Local special circumstances: While the overall trends in the RTD Coffee market in Europe are similar across countries, there are also some local special circumstances that influence the market. For example, in countries like Italy and France, where coffee culture is deeply ingrained, there is a strong preference for traditional espresso-based beverages. This has led to the introduction of RTD Coffee products that replicate the taste and quality of freshly brewed espresso. In Northern European countries, such as Sweden and Norway, there is a growing trend towards sustainable and eco-friendly products. This has resulted in the development of RTD Coffee products that are packaged in environmentally friendly materials, such as recyclable or biodegradable packaging.

Underlying macroeconomic factors: The growth of the RTD Coffee market in Europe is also influenced by underlying macroeconomic factors. The European economy has been experiencing steady growth in recent years, which has led to increased consumer spending power. This has allowed consumers to indulge in premium and higher-priced RTD Coffee products. Furthermore, the growing trend of urbanization in Europe has also contributed to the growth of the RTD Coffee market. As more people move to cities and lead busy lifestyles, the demand for convenient and on-the-go food and beverage options, including RTD Coffee, has increased. In conclusion, the Ready-to-Drink (RTD) Coffee market in Europe is experiencing growth due to customer preferences for convenience, the popularity of cold brew and healthier options, local special circumstances such as coffee culture and sustainability, and underlying macroeconomic factors such as increased consumer spending power and urbanization.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.