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

The Ready-to-Drink (RTD) Coffee & Tea market in North America is experiencing significant growth due to changing customer preferences and increasing demand for convenient and on-the-go beverages.

Customer preferences: Customers in North America are increasingly seeking convenient and time-saving options when it comes to their beverage choices. The fast-paced lifestyle and busy schedules have led to a rise in demand for ready-to-drink coffee and tea products. These beverages offer a quick and easy solution for consumers who want to enjoy their favorite drinks without the need for brewing or steeping. Additionally, the growing health consciousness among consumers has also contributed to the popularity of RTD coffee and tea, as they offer a healthier alternative to sugary carbonated drinks.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in North America is the introduction of innovative flavors and formulations. Manufacturers are constantly exploring new flavor combinations and ingredients to cater to the diverse preferences of consumers. This includes the introduction of unique coffee blends, such as cold brew and nitro cold brew, which offer a smoother and less acidic taste compared to traditional brewed coffee. Similarly, flavored teas, such as fruit-infused and herbal varieties, are gaining popularity among health-conscious consumers. Another trend in the market is the increasing availability of RTD coffee and tea products in different packaging formats. Manufacturers are offering a wide range of options, including cans, bottles, cartons, and pouches, to cater to the varying needs of consumers. This allows customers to choose the packaging format that best suits their lifestyle and consumption habits, whether it's a single-serve bottle for on-the-go convenience or a larger pack for home consumption.

Local special circumstances: The RTD Coffee & Tea market in North America is also influenced by local special circumstances. For example, in the United States, the growing popularity of coffee shop culture has contributed to the demand for RTD coffee products. Consumers who enjoy specialty coffee beverages at cafes are now looking for similar flavors and quality in ready-to-drink options. This has led to the emergence of premium and artisanal RTD coffee brands that focus on delivering a high-quality coffee experience in a convenient format.

Underlying macroeconomic factors: The growth in the RTD Coffee & Tea market in North America can be attributed to several underlying macroeconomic factors. Firstly, the region has a well-developed and mature beverage market, which provides a strong foundation for the growth of RTD coffee and tea products. Additionally, the increasing disposable income and changing consumer lifestyles have contributed to the rising demand for convenient and on-the-go beverages. Furthermore, the presence of major market players and their continuous investment in product innovation and marketing has also played a significant role in driving the growth of the RTD Coffee & Tea 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.