Ready-to-Drink (RTD) Coffee - Mongolia

The Ready-to-Drink (RTD) Coffee market in Mongolia is experiencing significant growth and development.

Customer preferences: Mongolian consumers have shown a growing preference for convenience and on-the-go products, which has contributed to the rise in popularity of RTD coffee. The fast-paced lifestyle and increasing urbanization in Mongolia have led to a higher demand for ready-to-consume beverages that can be easily consumed while commuting or working. Additionally, the younger generation in Mongolia is more open to trying new and innovative products, and RTD coffee appeals to their taste preferences and desire for convenience.

Trends in the market: One of the key trends in the RTD coffee market in Mongolia is the introduction of new flavors and varieties. Coffee manufacturers are constantly innovating to cater to the diverse tastes of consumers. This includes offering flavors like caramel, mocha, and vanilla, as well as introducing specialty coffee blends. The availability of a wide range of flavors and options has contributed to the growing popularity of RTD coffee among Mongolian consumers. Another trend in the market is the increasing use of sustainable and eco-friendly packaging. Consumers in Mongolia are becoming more conscious of the environmental impact of their purchasing decisions and are actively seeking products that are packaged in recyclable materials. Coffee manufacturers in Mongolia are responding to this trend by using sustainable packaging materials for their RTD coffee products. This not only appeals to environmentally conscious consumers but also helps to differentiate their products in the market.

Local special circumstances: Mongolia's unique climate and geography present certain challenges for the RTD coffee market. The country experiences extremely cold winters, which can limit the consumption of cold beverages. However, coffee manufacturers have adapted to this challenge by introducing hot RTD coffee options that can be consumed during the colder months. This has helped to maintain the demand for RTD coffee throughout the year.

Underlying macroeconomic factors: The growing economy and increasing disposable income in Mongolia have also contributed to the development of the RTD coffee market. As people have more purchasing power, they are willing to spend on premium and convenience products like RTD coffee. Additionally, the expanding middle class in Mongolia has led to a larger consumer base for RTD coffee, driving market growth. In conclusion, the Ready-to-Drink (RTD) Coffee market in Mongolia is experiencing growth and development due to customer preferences for convenience, the introduction of new flavors and sustainable packaging, local special circumstances such as cold winters, and underlying macroeconomic factors such as a growing economy and increasing disposable income.

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.