US RTD Coffee Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2021 |
| Market Size (2023) | USD 6.10 Billion |
| Market Size (2028) | USD 8.13 Billion |
| CAGR (2023 - 2028) | 5.92 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US RTD Coffee Market Analysis
The United States Ready-to-Drink (RTD) Coffee Market size is expected to grow from USD 6.10 billion in 2023 to USD 8.13 billion by 2028, at a CAGR of 5.92% during the forecast period (2023-2028).
Owing to Covid-19, the United States government had imposed measures, like social distancing and lockdowns, in place, which have had a huge impact on cafés, micro-roasters, restaurants, and other out-of-home outlets. Therefore, the majority of coffee consumers were purchasing coffee via online delivery channels. A large number of consumers were ordering their coffee online, increasing the consumption of at-home coffee consumption, or were increasingly purchasing ready-to-drink coffee. Owing to the hectic work from home culture during the lockdown the demand for ready-to-drink (RTD) increased rapidly. The millennials account for the largest consumer segment for RTD coffee due to convivence being one of the major factors. The RTD coffee comes in various flavors and variations giving consumers various options to opt as per their taste and preference.
Over the medium term, with increasingly hectic schedules, there has been a constant growth in coffee consumption across the United States. Furthermore, the ready-to-drink (RTD) coffee segment is gaining a deeper foothold at a time when gourmet coffee and convenience are taking the center stage for American consumers and retailers. Therefore, this factor is increasing the demand for ready-to-drink (RTD) coffee around the country.
Ready-to-drink (RTD) coffee appeals to a wide range of consumers, which is contributing to its growth. There has been an increase in cold coffee consumption by Gen X consumers, but the primary consumers are young people. Functional RTD coffee provides an opportunity for brands that can differentiate themselves through health claims. Consumers are looking for coffees that offer a multitude of functional benefits, such as antioxidants, anti-inflammatory, low sugar, added protein, probiotics, as well as low caffeine and high caffeine. Moreover, dairy-free and vegan coffee are also increasingly being launched in the market, so as to deliver on both convenience and healthy on-the-go beverage categories.
US RTD Coffee Market Trends
This section covers the major market trends shaping the US Ready-to-Drink (RTD) Coffee Market according to our research experts:
Growing Health Trends Spotting in RTD Coffee Beverages
Healthy drinking is no more a trend in the United States but has become important in consumers' life to consume healthy food and drink items. Various types of RTD coffee are introduced in the market to serve the vast consumer base spread across the country. Marked by health concerns, consumers are increasingly growing aware of the available functional drinks, thus, driving the market for RTD coffee in the hot segment. With respect to growing trends of functional drinks, consumers are purposely wanting to purchase RTD coffees that claim to provide health benefits. Henceforth, the leading companies are infusing nutrients, like vitamins, minerals, probiotics, antioxidants, and energy boosters, in their RTD coffee products. For instance, in August 2021, Functional beverage brand REBBL launched REBBL Stacked Coffee which is 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 RTD coffee market addresses the requirements of the consumers by enhancing taste with the addition of healthy nutrients in the final product.
Supermarket/Hypermarket holds Major Share
The supermarkets/hypermarkets segment of the market studied held the largest market share indicating consumer preference for purchasing coffee products. Owing to high consumer demand, major supermarkets are expanding the range of ready-to-drink coffee products, representing the diversity of the products. Consequently, they are forming an international aisle of RTD coffee for specific consumer groups, such as organic, vegan, and kosher. For example, FORTO Coffee Shots, a two-ounce, single-serve coffee drink brand, migrated from check-out counters populated by other energy shot brands into the coffee aisles of 3,700 Walmart stores. The growth observed in the supermarket's segment was led by its appeal among the baby boomers seeking safe exploration of various ethnic foods. Also, supermarkets act as a point of sale for younger consumers too, who show more interest in premium coffee offerings. Selling the products through supermarkets signifies the transaction-building strategy of the seller, as consumers increasingly engage in impulse purchases in supermarkets. For instance, Walmart, one of the leading supermarket chains, has been aggregating the RTD coffee products offered by numerous global and private-label brands, such as Maxwell, Rise Brewing Co., Starbucks, Califia Farms, and High Brew.Leading supermarkets and hypermarkets that sell RTD coffee are Walmart Inc., Target Corp., Costco Wholesale Corp., etc., among othe
US RTD Coffee Industry Overview
The United States ready-to-drink (RTD) coffee market is highly competitive, with the presence of major global and various regional players. The major players in the market are Starbucks Corporation, Danone, Califia Farms, LLC among others. The major global players have a good geographical reach and an extensive distribution channel, which gives them an upper hand over other manufacturers. The major players are also involved in competitive advertising, through various promotional channels. The most prominent strategy followed by the companies is product innovation. As COVID lockdowns and health-conscious habits have affected the market, most of the companies have strengthened their natural ingredient-containing products and variants.
US RTD Coffee Market Leaders
DANONE
Dunkin' Donuts
Starbucks
Califia Farms, LLC
La Colombe Coffee Roasters
*Disclaimer: Major Players sorted in no particular order
US RTD Coffee Market News
- In April 2021-High Brew Coffee expanded its Ready-to-Drink (RTD) line and continued to innovate in the newly-introduced nitrogenated (nitro) cold brew category with the launch of its Sweet Cream Nitro Cold Brew variety.
- In March 2021-Nitro Beverage Inc. and VERSO Capital, a Luxembourg-based boutique merchant banking and financial services firm announced the successful closing of a series seed. The extra capital will allow the New Jersey-based producer of fair trade, nitrogen-infused organic cold brew coffees, to expand its product lines and increase retail capabilities across the United States.
- In January 2021- Coca-Cola Plc announced Coca-Cola with Coffee and Coca-Cola with Coffee Zero Sugar launched in the United States. Coca-Cola with Coffee is available nationwide in three signature flavors, Dark Blend, Vanilla, and Caramel and its zero-sugar counterpart comes in Dark Blend and Vanilla.
US RTD Coffee Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & 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 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Packaging
5.1.1 Bottles
5.1.2 Cans
5.2 By Distribution Channel
5.2.1 Supermarkets/Hypermarkets
5.2.2 Convenience Stores
5.2.3 Specialist Stores
5.2.4 Online Retail Stores
5.2.5 Other Channels
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Coca-Cola Beverages Plc
6.3.2 Nitro Beverage Co.
6.3.3 JAB Holding Company
6.3.4 Starbucks Corporation
6.3.5 Califia Farms, LLC
6.3.6 La Colombe Coffee Roasters
6.3.7 Danone S.A.
6.3.8 HIGH BREW COFFEE, Inc
6.3.9 Cold Brewtus Coffee Roasters, Inc.
6.3.10 Nestle SA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
US RTD Coffee Industry Segmentation
Ready-to-drink coffee is a cold drink that comes pre-made in a can or a bottle and is a quick takeaway option for lunches. The United States ready-to-drink (RTD) coffee market is segmented by packaging type (bottles and cans) and distribution channel (supermarket/hypermarkets, convenience stores, specialist stores, online retail, and other distribution channels). For each segment, the market sizing and forecasting have been done in value terms (USD million).
| By Packaging | |
| Bottles | |
| Cans |
| By Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Convenience Stores | |
| Specialist Stores | |
| Online Retail Stores | |
| Other Channels |
US RTD Coffee Market Research FAQs
How big is the United States Ready-to-Drink (RTD) Coffee Market?
The United States Ready-to-Drink (RTD) Coffee Market size is expected to reach USD 6,098.41 million in 2023 and grow at a CAGR of 5.92% to reach USD 8,130.30 million by 2028.
What is the current United States Ready-to-Drink (RTD) Coffee Market size?
In 2023, the United States Ready-to-Drink (RTD) Coffee Market size is expected to reach USD 6,098.41 million.
Who are the key players in United States Ready-to-Drink (RTD) Coffee Market?
DANONE, Dunkin' Donuts, Starbucks, Califia Farms, LLC and La Colombe Coffee Roasters are the major companies operating in the United States Ready-to-Drink (RTD) Coffee Market.
US Ready-to-Drink (RTD) Coffee Industry Report
Statistics for the 2023 US Ready-to-Drink (RTD) Coffee market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Ready-to-Drink (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.
