North America RTD Coffee Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2021 |
| Market Size (2023) | USD 5.17 Billion |
| Market Size (2028) | USD 6.04 Billion |
| CAGR (2023 - 2028) | 3.15 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America RTD Coffee Market Analysis
The North America Ready-to-Drink (RTD) Coffee Market size is estimated at USD 5.17 billion in 2023, and is expected to reach USD 6.04 billion by 2028, growing at a CAGR of 3.15% during the forecast period (2023-2028).
The COVID-19 pandemic affected thousands of people across the world. In addition to the serious implications on public health and healthcare services, COVID-19 had a significant impact on businesses and economies. However, the pandemic made a positive impact on the ready-to-drink coffee market in North America, doubling the annual growth in 2020 compared with the historical period.
Major coffee outlets reported devastating financials due to food service closures amid the COVID-19 pandemic. Starbucks in 2020 revealed a decline in its store sales which went to as high as 6% for the Americas and 5% for the United States, both driven by a 21% decrease in comparable transactions. On the other hand, the ready-to-drink category recorded robust sales, as reported by key market players. Nestlé, in its full-year financial statement, reported strong consumer demand for its at-home coffee products, including RTD coffee, with its Nescafé and Starbucks ranges experiencing ‘mid-to-single digits' sales growth.
Over the review period, the market is driven by the rising demand for convenience and nutrition-enabled products, owing to the hectic work schedules of the consumers. Additionally, ready-to-drink coffee, being an excellent source of instant energy, is becoming popular among youngsters as well as the middle-aged working population. Furthermore, the decrease in the popularity of sugar-sweetened beverages owing to the imposition of sugar taxes by countries such as the United States and Mexico to curb obesity and encourage healthier consumption habits may be attributed to the growth of this segment of the market.
North America RTD Coffee Market Trends
This section covers the major market trends shaping the North American RTD Coffee Market according to our research experts:
Rise in Functional Coffee Demand
Healthy drinking, more than a fad, has become one of the major drivers in the country’s food and beverage industry. Companies across the segment including RTD beverage are ramping up their portfolio to address the growing demand. The leading companies are infusing nutrients, like vitamins, minerals, probiotics, antioxidants, and energy boosters, into their RTD coffee products. For instance, in August 2021, the functional beverage brand REBBL launched REBBL Stacked Coffee, a line of ready-to-drink cold-brew coffees designed to provide balanced energy and immunity support. The beverages combine caffeine with green tea’s nootropic L-Theanine and are made with oat milk, reishi mushrooms, Lion’s Mane mushrooms, and MCTs. The coffee comes in four flavors: café mocha, vanilla late, hazelnut latte, and straight black. All varieties are USDA-certified organic, fair trade, non-GMO, dairy-free, soy-free, gluten-free, and vegan.
Grocery Stores & Convenience Stores to Drive the Sales for RTD Coffee in the Region
The distribution of ready-to-drink coffee has expanded to several mainstream channels, such as supermarkets, hypermarkets, grocery stores, specialist stores, convenience stores, etc. Among the numerous outlets available, grocery stores are preferred in the countries as it has varied varieties of coffees from different companies along with catering to consumers’ preferences, which is anticipated to drive market growth in the future. The increase in demographic spending, ease, and convenience through supermarket purchases is expected to pave a strong pathway for RTD coffee manufacturers to penetrate, particularly in the developing countries, where these stores are being set in large numbers. With the increasing demand for RTD coffee, supermarkets, hypermarkets such as Walmart and Carrefour, and convenience stores are witnessing a fast growth in the sales of their market.
North America RTD Coffee Industry Overview
The North American Ready-to-Drink (RTD) Coffee Market is highly competitive and leading players in the market studied have been experimenting with innovative flavors and offering non-dairy coffee options to cater to the growing vegan population in the region. Additionally, mergers and acquisitions, product innovation, expansion, and partnerships with other companies are the common strategies to improve the company's presence and gain market share in the region. Key players dominating the market include Starbucks Coffee Company, Monster Beverage Corporation, Danone SA, Inspire Brands, and Califia Farms LLC, among others.
North America RTD Coffee Market Leaders
Starbucks Coffee Company
Monster Beverage Corporation
Danone SA
Inspire Brands
Califia Farms
*Disclaimer: Major Players sorted in no particular order
North America RTD Coffee Market News
- In February 2022, Starbucks launched a new plant-based Frappuccino line with flavors. It is made up of oat milk and two flavors, Caramel Waffle Cookie and Dark Chocolate Brownie. The product is available in pet bottles.
- In September 2021, the International Delight brand introduced a ready-to-drink Reese’s iced coffee in partnership with the Hershey Company's REESE'S brand. This product is available in 64-ounce ready-to-drink cartons and is a combination of chocolate, peanut butter, and coffee.
- In April 2021, High Brew Coffee, the Austin-based leading maker of natural canned cold brew coffee, expanded its Ready-to-Drink (RTD) line in the newly-introduced nitrogenated (nitro) cold brew category with the launch of its Sweet Cream Nitro Cold Brew variety. The new product was positioned as a better-for-you indulgence option with 200 milligrams of naturally occurring caffeine.
- In February 2020, DanoneWave owned STōK expanded its range of cold brew beverages with the introduction of two new cold brew drinks, Cold Brew Ready-to-Drink Unsweet Coffee which is available in 48-oz. multi-serve bottles and provides caffeine along with energy 10g of protein and Fueled Cold Brew, which is a keto-friendly coffee option for those following the high-protein, low-sugar diet.
North America RTD Coffee Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Packaging
5.1.1 Bottles
5.1.2 Cans
5.1.3 Other Packaging
5.2 Product Type
5.2.1 Cold Brew Coffee
5.2.2 Other RTD Coffee
5.3 Distribution Channel
5.3.1 Supermarkets/Hypermarkets
5.3.2 Convenience Stores
5.3.3 Online Retail
5.3.4 Other Distribution Channel
5.4 Geography
5.4.1 United States
5.4.2 Canada
5.4.3 Mexico
5.4.4 Rest of North America
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Starbucks Coffee Company
6.3.2 Nestle SA
6.3.3 Monster Beverage Corporation
6.3.4 JAB Holding Company
6.3.5 Danone SA
6.3.6 High Brew Coffee Inc.
6.3.7 Califia Farms, Llc
6.3.8 Inspire Brands Inc.
6.3.9 Inspire Brands Inc.
6.3.10 The Coca-cola Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
North America RTD Coffee Industry Segmentation
Ready-to-drink (RTD) coffee refers to pre-prepared packaged beverages that are ready for consumption at the time of purchase. The North American ready-to-drink (RTD) coffee market is segmented by packaging such as bottles, cans, and other packaging. By product type, the market is segmented into cold brew coffee and other RTD coffee. By distribution channel, the market is segmented by supermarkets/hypermarkets, convenience stores, online stores, and other distribution channels. Also, the study analyzes the RTD coffee market in the emerging and established markets across North America, including the United States, Canada, Mexico, and the Rest of North America. The report offers market size and forecast in terms of value (USD million) for the above segments.
| Packaging | |
| Bottles | |
| Cans | |
| Other Packaging |
| Product Type | |
| Cold Brew Coffee | |
| Other RTD Coffee |
| Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Convenience Stores | |
| Online Retail | |
| Other Distribution Channel |
| Geography | |
| United States | |
| Canada | |
| Mexico | |
| Rest of North America |
North America RTD Coffee Market Research FAQs
How big is the North America Ready-to-Drink (RTD) Coffee Market?
The North America Ready-to-Drink (RTD) Coffee Market size is expected to reach USD 5.17 billion in 2023 and grow at a CAGR of 3.15% to reach USD 6.04 billion by 2028.
What is the current North America Ready-to-Drink (RTD) Coffee Market size?
In 2023, the North America Ready-to-Drink (RTD) Coffee Market size is expected to reach USD 5.17 billion.
Who are the key players in North America Ready-to-Drink (RTD) Coffee Market?
Starbucks Coffee Company, Monster Beverage Corporation, Danone SA, Inspire Brands and Califia Farms are the major companies operating in the North America Ready-to-Drink (RTD) Coffee Market.
North America RTD Coffee Industry Report
Statistics for the 2023 North America RTD Coffee market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America RTD Coffee analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
