Ready-to-Drink (RTD) Coffee - Australia

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

Customer preferences: One of the key factors driving the growth of the RTD Coffee market in Australia is the changing preferences of consumers. With busy lifestyles and an increasing demand for convenience, consumers are turning to ready-to-drink beverages as a quick and easy option. RTD Coffee provides a convenient solution for coffee lovers who are on the go and do not have the time to brew their own coffee. Additionally, the younger generation, who are more inclined towards trying new and innovative products, are also contributing to the growth of the market.

Trends in the market: The RTD Coffee market in Australia is witnessing several trends that are shaping its growth. One of the major trends is the increasing popularity of cold brew coffee. Cold brew coffee offers a smoother and less acidic taste compared to traditional hot brewed coffee, making it a preferred choice among consumers. The market is also witnessing a rise in the demand for flavored RTD Coffee, with flavors such as caramel, vanilla, and mocha gaining popularity. Another trend in the market is the growing focus on health and wellness. Consumers are becoming more conscious about their health and are seeking healthier alternatives to traditional sugary beverages. As a result, there is a growing demand for low-sugar and low-calorie RTD Coffee options. Manufacturers are responding to this trend by introducing healthier variants of RTD Coffee that cater to the health-conscious consumer.

Local special circumstances: Australia has a well-established coffee culture, with a strong preference for high-quality coffee. This cultural preference for good coffee has influenced the RTD Coffee market in the country. Consumers in Australia have higher expectations when it comes to the taste and quality of their coffee, which has led to the introduction of premium and gourmet RTD Coffee products in the market. These products cater to the discerning tastes of Australian consumers and offer a more authentic coffee experience.

Underlying macroeconomic factors: The growth of the RTD Coffee market in Australia is also supported by favorable macroeconomic factors. The country has a strong economy with a high disposable income, which allows consumers to spend more on premium and indulgent products like RTD Coffee. Additionally, the increasing urbanization and a growing number of coffee shops and cafes in Australia have contributed to the popularity of coffee as a beverage of choice among consumers. This, in turn, has boosted the demand for RTD Coffee as a convenient option for coffee lovers. In conclusion, the Ready-to-Drink (RTD) Coffee market in Australia is experiencing significant growth due to changing customer preferences, including a demand for convenience and healthier options. The market is witnessing trends such as the popularity of cold brew coffee and flavored RTD Coffee. The local coffee culture and the country's strong economy also contribute to the growth of the market. Overall, the RTD Coffee market in Australia is expected to continue its upward trajectory in the coming years.

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.