North America Ready to Drink Coffee - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)
The North America Ready to Drink Coffee Market size is estimated at 5.65 billion USD in 2024, and is expected to reach 7.52 billion USD by 2030, growing at a CAGR of 4.85% during the forecast period (2024-2030).
Innovations in RTD coffee drinks with healthier and functional drinks driving growth
North America witnessed a surge in the popularity of ready-to-drink (RTD) coffee, encompassing products such as iced coffee, cold brew, and coffee-based energy drinks. The convenience and portability of these offerings have struck a chord with time-pressed consumers. Gen Z consumers are gravitating toward RTD coffee over its hot counterpart. In response, brands are ramping up their RTD coffee portfolios. This trend is further fueled by the fact that, as of 2022, approximately 20.88% of the US population, 22% of Canadians, and 27% of Mexicans fall into the Gen Z age bracket. Moreover, there is a discernible shift toward healthier and more functional RTD coffee options. In 2023, about 35% of North American consumers expressed a preference for low-sugar RTD coffees. Manufacturers are taking note and introducing low-sugar, dairy-free, and plant-based alternatives to cater to this growing demand.
From 2018 to 2022, the value of the iced coffee market in North America witnessed a compound annual growth rate (CAGR) of 4.85%. Cold beverages are the preferred choice for a majority of North American consumers. Iced coffee, often seen as convenient, is available in a range of flavors and formulations, often with added sweetness. This popularity is expected to drive the market's growth in the coming years.
Cold brew coffee is poised to be the frontrunner in terms of growth, with a projected CAGR of 6.37% from 2024 to 2030. Cold brew, known for its lower acidity and ample caffeine content, has a natural sweetness without any added sugars or additives. Some variants even offer carbonation, such as nitro cold brew. This makes RTD cold brew coffee an enticing option for those seeking a refreshing, cold beverage other than soda or fizzy drinks.
Due to the increasing demand for convenient beverages, Mexico is expected to be the future front-runner in the market studied
The North American ready-to-drink (RTD) coffee market witnessed robust growth, with sales surging by 10.03% in value from 2021 to 2023. This growth can be attributed to the rising consumer demand for RTD coffee products, prompting manufacturers to introduce new and innovative offerings. Notably, in 2022-2023, renowned brands such as Starbucks, Dunkin', Califia Farms, and La Colombe unveiled a range of RTD coffee options to captivate consumers.
The United States dominates the North American RTD coffee market, bolstered by its significant coffee consumption. The country's coffee consumption stands at 1.4 billion pounds, accounting for roughly 20% of global coffee consumption. Additionally, the United States is a major coffee bean importer, with imports exceeding 3 billion pounds in 2021. The introduction of functional ingredient-infused beverages further fuels coffee consumption, as these offerings not only enhance focus and productivity, traditionally associated with caffeine, but also cater to other health aspects.
Mexico is observed to be the fastest-growing country, apart from the Rest of North America, with an expected CAGR of 6.03% by value from 2024 to 2030. Growing urbanization and expansion in the middle-class community are driving the market for RTD tea in the country. Mexico is also becoming increasingly urbanized, leading to a higher demand for convenient and portable food and beverage options. As per World Bank reports, the urbanization rate in Mexico was 82.6% the previous year, which was way above the average global rate of urbanization, 56.6%, with 82.6% of the population residing in urban areas as of 2023.
North America Ready to Drink Coffee Market Trends
Consumers are increasingly seeking convenient and portable beverage options to fit their busy lifestyles, thereby driving segment sales
RTD coffee consumption is particularly high the age group of 18 to 39-year consumers. It was observed that in 2022, an average of american worker has a tendency to spent over USD 14.15 per week.
n the North American region, Gen Z and Millennial consumers professed the highest brand loyalty among other age groups. 73% of United States consumers consider themselves “loyal” to certain retailers, brands, and stores.
Inflation has affected every aspect of coffee businesses, including green coffee prices and transportation costs. Pandemic-related supply chain challenges have contributed to inflation and increased wholesale coffee prices. However, the market stood steady with players maintaining the prices to an economical level.
In the US, there is a wide variety of RTD coffee available, ranging from commercial brands to artisan and gourmet options, allowing consumers to choose from a variety of flavors. It is important to note that RTD coffee has a significant place in the United States market, particularly as a substitute for hot coffee.
North America Ready to Drink Coffee Industry Overview
The North America Ready to Drink Coffee Market is fairly consolidated, with the top five companies occupying 88.83%. The major players in this market are Califia Farms, LLC, Danone S.A., Keurig Dr Pepper, Inc., PepsiCo, Inc. and The Coca-Cola Company (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Innovations in RTD coffee drinks with healthier and functional drinks driving growth
North America witnessed a surge in the popularity of ready-to-drink (RTD) coffee, encompassing products such as iced coffee, cold brew, and coffee-based energy drinks. The convenience and portability of these offerings have struck a chord with time-pressed consumers. Gen Z consumers are gravitating toward RTD coffee over its hot counterpart. In response, brands are ramping up their RTD coffee portfolios. This trend is further fueled by the fact that, as of 2022, approximately 20.88% of the US population, 22% of Canadians, and 27% of Mexicans fall into the Gen Z age bracket. Moreover, there is a discernible shift toward healthier and more functional RTD coffee options. In 2023, about 35% of North American consumers expressed a preference for low-sugar RTD coffees. Manufacturers are taking note and introducing low-sugar, dairy-free, and plant-based alternatives to cater to this growing demand.
From 2018 to 2022, the value of the iced coffee market in North America witnessed a compound annual growth rate (CAGR) of 4.85%. Cold beverages are the preferred choice for a majority of North American consumers. Iced coffee, often seen as convenient, is available in a range of flavors and formulations, often with added sweetness. This popularity is expected to drive the market's growth in the coming years.
Cold brew coffee is poised to be the frontrunner in terms of growth, with a projected CAGR of 6.37% from 2024 to 2030. Cold brew, known for its lower acidity and ample caffeine content, has a natural sweetness without any added sugars or additives. Some variants even offer carbonation, such as nitro cold brew. This makes RTD cold brew coffee an enticing option for those seeking a refreshing, cold beverage other than soda or fizzy drinks.
Due to the increasing demand for convenient beverages, Mexico is expected to be the future front-runner in the market studied
The North American ready-to-drink (RTD) coffee market witnessed robust growth, with sales surging by 10.03% in value from 2021 to 2023. This growth can be attributed to the rising consumer demand for RTD coffee products, prompting manufacturers to introduce new and innovative offerings. Notably, in 2022-2023, renowned brands such as Starbucks, Dunkin', Califia Farms, and La Colombe unveiled a range of RTD coffee options to captivate consumers.
The United States dominates the North American RTD coffee market, bolstered by its significant coffee consumption. The country's coffee consumption stands at 1.4 billion pounds, accounting for roughly 20% of global coffee consumption. Additionally, the United States is a major coffee bean importer, with imports exceeding 3 billion pounds in 2021. The introduction of functional ingredient-infused beverages further fuels coffee consumption, as these offerings not only enhance focus and productivity, traditionally associated with caffeine, but also cater to other health aspects.
Mexico is observed to be the fastest-growing country, apart from the Rest of North America, with an expected CAGR of 6.03% by value from 2024 to 2030. Growing urbanization and expansion in the middle-class community are driving the market for RTD tea in the country. Mexico is also becoming increasingly urbanized, leading to a higher demand for convenient and portable food and beverage options. As per World Bank reports, the urbanization rate in Mexico was 82.6% the previous year, which was way above the average global rate of urbanization, 56.6%, with 82.6% of the population residing in urban areas as of 2023.
North America Ready to Drink Coffee Market Trends
Consumers are increasingly seeking convenient and portable beverage options to fit their busy lifestyles, thereby driving segment sales
RTD coffee consumption is particularly high the age group of 18 to 39-year consumers. It was observed that in 2022, an average of american worker has a tendency to spent over USD 14.15 per week.
n the North American region, Gen Z and Millennial consumers professed the highest brand loyalty among other age groups. 73% of United States consumers consider themselves “loyal” to certain retailers, brands, and stores.
Inflation has affected every aspect of coffee businesses, including green coffee prices and transportation costs. Pandemic-related supply chain challenges have contributed to inflation and increased wholesale coffee prices. However, the market stood steady with players maintaining the prices to an economical level.
In the US, there is a wide variety of RTD coffee available, ranging from commercial brands to artisan and gourmet options, allowing consumers to choose from a variety of flavors. It is important to note that RTD coffee has a significant place in the United States market, particularly as a substitute for hot coffee.
North America Ready to Drink Coffee Industry Overview
The North America Ready to Drink Coffee Market is fairly consolidated, with the top five companies occupying 88.83%. The major players in this market are Califia Farms, LLC, Danone S.A., Keurig Dr Pepper, Inc., PepsiCo, Inc. and The Coca-Cola Company (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 EXECUTIVE SUMMARY & KEY FINDINGS
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Consumer Buying Behaviour
4.2 Innovations
4.3 Brand Share Analysis
4.4 Regulatory Framework
5 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VALUE IN USD AND VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Soft Drink Type
5.1.1 Cold Brew Coffee
5.1.2 Iced coffee
5.1.3 Other RTD Coffee
5.2 Packaging Type
5.2.1 Aseptic packages
5.2.2 Glass Bottles
5.2.3 Metal Can
5.2.4 PET Bottles
5.3 Distribution Channel
5.3.1 Off-trade
5.3.1.1 Convenience Stores
5.3.1.2 Online Retail
5.3.1.3 Specialty Stores
5.3.1.4 Supermarket/Hypermarket
5.3.1.5 Others
5.3.2 On-trade
5.4 Country
5.4.1 Canada
5.4.2 Mexico
5.4.3 United States
5.4.4 Rest of North America
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 BRC Inc.
6.4.2 Califia Farms, LLC
6.4.3 Chamberlain Coffee Inc.
6.4.4 Costco Wholesale Corporation
6.4.5 Danone S.A.
6.4.6 Keurig Dr Pepper, Inc.
6.4.7 La Colombe Holdings, Inc.
6.4.8 Luigi Lavazza S.p.A.
6.4.9 Nestle S.A.
6.4.10 PepsiCo, Inc.
6.4.11 The Central America Bottling Corporation
6.4.12 The Coca-Cola Company
7 KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Consumer Buying Behaviour
4.2 Innovations
4.3 Brand Share Analysis
4.4 Regulatory Framework
5 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VALUE IN USD AND VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Soft Drink Type
5.1.1 Cold Brew Coffee
5.1.2 Iced coffee
5.1.3 Other RTD Coffee
5.2 Packaging Type
5.2.1 Aseptic packages
5.2.2 Glass Bottles
5.2.3 Metal Can
5.2.4 PET Bottles
5.3 Distribution Channel
5.3.1 Off-trade
5.3.1.1 Convenience Stores
5.3.1.2 Online Retail
5.3.1.3 Specialty Stores
5.3.1.4 Supermarket/Hypermarket
5.3.1.5 Others
5.3.2 On-trade
5.4 Country
5.4.1 Canada
5.4.2 Mexico
5.4.3 United States
5.4.4 Rest of North America
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 BRC Inc.
6.4.2 Califia Farms, LLC
6.4.3 Chamberlain Coffee Inc.
6.4.4 Costco Wholesale Corporation
6.4.5 Danone S.A.
6.4.6 Keurig Dr Pepper, Inc.
6.4.7 La Colombe Holdings, Inc.
6.4.8 Luigi Lavazza S.p.A.
6.4.9 Nestle S.A.
6.4.10 PepsiCo, Inc.
6.4.11 The Central America Bottling Corporation
6.4.12 The Coca-Cola Company
7 KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
