Ready-to-Drink (RTD) Coffee - North America

The Ready-to-Drink (RTD) Coffee market in North America has been experiencing significant growth in recent years, driven by changing consumer preferences and the convenience of on-the-go beverages.

Customer preferences: Consumers in North America have shown a growing preference for ready-to-drink coffee due to its convenience and portability. Busy lifestyles and the need for quick and easy refreshment options have fueled the demand for RTD coffee products. Additionally, the increasing popularity of coffee culture and the desire for unique and innovative flavors have also contributed to the growth of the market.

Trends in the market: One of the key trends in the RTD coffee market in North America is the rise of cold brew coffee. Cold brew coffee is known for its smooth and less acidic taste compared to traditional hot brewed coffee. This trend has been driven by the growing popularity of iced coffee and the desire for a refreshing and flavorful beverage. Many coffee companies have introduced cold brew coffee products to cater to this demand. Another trend in the market is the increasing availability of plant-based and dairy-free options. As more consumers adopt a plant-based or lactose-free diet, there has been a growing demand for RTD coffee products that cater to these dietary preferences. Companies have responded by introducing dairy-free and plant-based milk alternatives, such as almond milk and oat milk, in their RTD coffee products.

Local special circumstances: In the United States, the largest market for RTD coffee in North America, the popularity of coffee shops and cafes has influenced the RTD coffee market. Consumers are looking for RTD coffee products that replicate the taste and quality of their favorite coffee shop beverages. This has led to a focus on premium and specialty RTD coffee products that offer a similar experience to visiting a coffee shop. In Canada, the second-largest market for RTD coffee in North America, the demand for RTD coffee has been driven by the growing popularity of iced coffee and the desire for convenient beverage options. The Canadian market has also seen a rise in the availability of locally sourced and organic RTD coffee products, catering to the preferences of environmentally conscious consumers.

Underlying macroeconomic factors: The growth of the RTD coffee market in North America can be attributed to several macroeconomic factors. The region has a well-established coffee culture, with a high level of coffee consumption per capita. Additionally, the region has a large population of young and urban consumers who value convenience and are willing to spend on premium and innovative beverage options. Furthermore, the growth of e-commerce and online grocery platforms has made it easier for consumers to access and purchase RTD coffee products. This has expanded the reach of RTD coffee brands and allowed them to cater to a wider consumer base. In conclusion, the Ready-to-Drink (RTD) Coffee market in North America is experiencing growth due to changing consumer preferences, including the demand for convenience, unique flavors, and plant-based options. The rise of cold brew coffee and the availability of premium and specialty RTD coffee products are key trends in the market. Local special circumstances, such as the influence of coffee shops in the United States and the demand for locally sourced products in Canada, also contribute to the market's development. The underlying macroeconomic factors, including the well-established coffee culture and the growth of e-commerce, further support the growth of the RTD coffee market in North America.

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.