Global Ready to Drink (RTD) Coffee Market - Growth Trends and Forecast (2015-2020)
RTD coffee is a recent concept and importance of these products can be understood in their market valuations, which often run into billions of dollars. In 2016, the market is valued at USD XX billion and is expected to grow at a CAGR of XX% and mature into a USD XX billion market by 2021.
Market Dynamics of Global RTD Coffee
RTD is a highly trend driven market and due to its instant nature and convenience, an element of â€˜newnessâ€™ is constantly demanded. With regard to the major access points, iced products with longer shelf life provide major opportunities along with liquid coffee concentrates and frozen concentrates. The latter products hold importance with bulk buyers such as restaurants and offices.
The constraint for the RTD market is in adapting to regional tastes and preferences. Consumers from nations having a strong habit of hot or freshly ground coffee take a considerable time and reluctance in adapting to the new tastes. Extensive marketing and use of locally sourced products are essential in countering this perception.
Considering the volume dependent nature of the market, availability of the products is a major market determinant. This factor is further amplified in the case of emerging countries, which lack a fully developed distribution network. The supermarket shelves and vending machines gain prominence in this regard. Both these access point make soft drink manufacturers, the ideal distribution partners, and dominant market players. This phenomenon can be clearly observed in the long-standing partnership between PepsiCo and Starbucks. Despite the portfolio strength of Starbucks, the distribution network offered by Pepsi is crucial for an adequate market penetration.
Global RTD Coffee Market Segmentation
On the basis of geography North America and Europe occupy pioneering and dominant market positions. The emerging markets of Asia-Pacific and South America present a very high volume potential.
Key Players in the Global RTD Coffee Market
The major players in the region include Cargill, Starbucks Corporation, Asahi Group Holdings and Ajinomoto General Foods Inc.
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