New Delhi, Oct. 07, 2024 (GLOBE NEWSWIRE) -- Europe ready to drink (RTD) coffee market is projected to hit the market valuation of US$ 4.53 billion by 2032 from US$ 2.38 billion in 2023 at a CAGR of 7.41% during the forecast period 2024–2032.
The Europe ready to drink (RTD) coffee market is poised for remarkable growth and innovation, driven by evolving consumer preferences and expanding market opportunities. With over 250 million coffee consumers across Europe, the market is tapping into a vast consumer base eager for innovation and diversity in coffee offerings. In the UK alone, coffee consumption has surpassed 95 million cups daily, with RTD options gaining traction among busy urbanites and health-conscious millennials. Moreover, over 60% of European consumers are actively seeking low-sugar and functional beverages, encouraging brands to introduce products that cater to these health trends.
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Innovation remains at the heart of the ready to drink (RTD) coffee market’s expansion. In 2023, more than 200 new RTD coffee products were launched, emphasizing unique flavors and health benefits such as added probiotics and adaptogens. The premium RTD coffee segment is experiencing a surge, with sales reaching 1 billion euros, driven by the consumer desire for high-quality, artisanal coffee experiences. Furthermore, sustainability is becoming a key focus, with over 75% of new products featuring eco-friendly packaging solutions. The rise of plant-based RTD coffee options is also notable, with 30 million units sold in 2023, reflecting the growing vegan and lactose-intolerant population. This innovative landscape is attracting significant investments, with 500 million euros injected into RTD coffee startups and research initiatives.
Looking ahead, the ready to drink (RTD) coffee market in Europe is expected to continue its robust growth, with projections indicating it will reach a value of 6 billion euros by 2025. The e-commerce channel is emerging as a major growth driver, with online sales accounting for 1.5 billion euros in 2023. The market is also witnessing geographic expansion, with Southern and Eastern Europe experiencing a 100 million euro increase in sales as consumer awareness and availability improve. Moreover, collaborations between coffee brands and tech firms are enhancing consumer engagement through personalized marketing strategies and AI-driven product recommendations. As these trends converge, the European Ready to drink (RTD) coffee market is set to offer exciting opportunities for investors, manufacturers, and consumers alike, making it a promising sector for future growth and innovation.
Key Findings in Europe Ready to Drink (RTD) Coffee Market
| Market Forecast (2032) | US$ 4.53 billion |
| CAGR | 7.41% |
| By Product | Espressos (48.5%) |
| By Flavor | Hazelnut (21.8%) |
| By Packaging | PET Bottles (37.2%) |
| By Price | Regular (64.1%) |
| By Serves | Multi serve (More Than 12 Oz) (65.3%) |
| By Distribution Channel | Off trade/Offline (86.2%) |
| By End User | Millennials (24.3%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Espresso's Irresistible Ascendancy: Europe's Coffee Culture in a Cup
Espresso's leadership in the European ready to drink (RTD) coffee market is underscored by its seamless blend of tradition and innovation. In 2023, the espresso segment accounted for almost €8 billion of Europe's ready-to-drink coffee revenue. This success is driven by the European consumer's preference for authentic, high-quality coffee experiences that espresso embodies. France, a major market, reports that over 900 million ready-to-drink espresso cans were sold last year, highlighting the product's widespread acceptance. The proliferation of vending machines offering espresso-based drinks, with over 150,000 units across Europe, indicates a shift towards on-the-go consumption. Moreover, the introduction of single-origin and organic espresso products has resonated with the ethically conscious European consumer, driving sales upward. With more than 1,200 espresso-centric coffee festivals and events held across the continent annually, the cultural celebration of espresso further cements its market dominance.
The future growth of espresso in the European ready to drink (RTD) coffee market is bolstered by strategic partnerships and technological advancements. Notably, collaborations between coffee producers and technology firms have led to the development of smart vending solutions, with over 5,000 AI-driven espresso machines deployed in urban centers. These innovations cater to the tech-savvy consumer seeking personalized coffee experiences. The rise of subscription services, with 3 million Europeans subscribing to monthly espresso deliveries, highlights the growing demand for convenience and variety. Furthermore, the sustainability trend continues to influence the market, with over 80% of espresso products now featuring recyclable packaging. This commitment to environmental responsibility aligns with consumer values, driving brand loyalty and repeat purchases. As the market continues to evolve, espresso's ability to adapt and innovate ensures its position as the front-runner in Europe's ready-to-drink coffee scene, meeting the demands of a diverse and dynamic consumer base.
Hazelnut Harmony: Europe's Love Affair with Nutty Ready-to-Drink Coffee
In recent years, Europe's ready to drink (RTD) coffee market has experienced a robust transformation, with hazelnut flavoring emerging as a star player. This trend is deeply rooted in the European consumers' penchant for indulgent and luxurious flavors that offer a sensory escape in convenient formats. As of 2023, more than 650 coffee shops across Europe have introduced hazelnut-flavored cold brews, indicating a significant shift towards this flavor profile. Furthermore, the proliferation of specialized coffee festivals, with over 200 events annually celebrating unique coffee blends, has spotlighted hazelnut as a favorite among connoisseurs. This trend is further buoyed by the increasing popularity of hazelnut as a comforting flavor during colder months, with sales peaking in autumn and winter seasons, accounting for millions of units sold during these periods.
A significant driver of this trend in the ready to drink (RTD) coffee market is the alignment of hazelnut flavoring with the sustainability and ethical sourcing movements. In 2023, over 40% of hazelnut coffee products were certified as sustainable, catering to the eco-conscious European consumer. This ethical alignment has attracted a diverse consumer base, including ethically minded Gen Z and millennials who dominate the ready-to-drink coffee segment. Additionally, the rise of personalized coffee experiences, facilitated by technology, has allowed consumers to tailor their flavor preferences, with hazelnut emerging as a top choice in over 300,000 personalized orders recorded this year. The allure of hazelnut is further enhanced by its compatibility with both dairy and plant-based milk alternatives, broadening its appeal to a wide range of dietary preferences. As Europe continues to embrace the convenience of ready-to-drink coffee, hazelnut's dominance appears set to continue, driven by its rich, versatile profile and alignment with contemporary consumer values.
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Premium Ready-to-Drink Coffee: The Rising Star in Europe's Beverage Market
The European ready to drink (RTD) coffee market is experiencing a remarkable surge in demand for premium ready-to-drink (RTD) coffee, a trend underscored by a robust compound annual growth rate. This shift is driven by a consumer base increasingly willing to invest in quality and unique coffee experiences. The average consumer in Europe now spends over €300 annually on specialty coffee, reflecting a burgeoning appreciation for gourmet flavors and artisanal production methods. With approximately 40% of consumers opting for premium options, the market is responding with innovative offerings, including single-origin brews and exotic blends sourced ethically from renowned coffee-growing regions. Major cities like London and Milan have seen a spike in premium RTD coffee consumption, with over 25 million units sold annually, indicating strong urban demand.
Supporting this growth is a demographic shift towards health-conscious and environmentally aware consumers. Reports show that 45% of these consumers prefer products with organic certifications and sustainably sourced ingredients. Additionally, premium RTD coffees are often associated with higher nutritional value, appealing to the 35% of the European population that prioritizes health and wellness in their dietary choices. The market's alignment with digital lifestyles is also significant, with 65% of purchases occurring online, facilitated by influencers and coffee connoisseurs sharing their experiences on social media platforms. Moreover, 50% of premium brands now offer customizable subscription services, enhancing consumer engagement and loyalty. As a result, the premium RTD coffee segment is not just a beverage choice but a lifestyle statement, driving its status as a rising star in Europe's beverage market.
Germany's Strong Dominance: Unpacking Its 17.4% Stake in Europe's Ready to drink (RTD) coffee market
Germany's significant 17.4% control over the European ready-to-drink (RTD) coffee market is a reflection of its robust coffee culture, industrial strength, and strategic market positioning. The country boasts over 80 million coffee drinkers, making it one of the largest coffee-consuming nations globally. This massive consumer base provides a fertile ground for RTD coffee growth. Germany is home to more than 1,500 coffee roasters and 2,000 coffee brands, many of which have successfully transitioned to the RTD segment. The German market is characterized by a high demand for variety, with consumers embracing innovative flavors and sustainable product options. This demand has propelled the introduction of over 300 new RTD coffee products in the past year alone. Furthermore, Germany's emphasis on sustainability is evident in its extensive use of eco-friendly packaging, with over 70% of RTD coffee products now featuring recyclable materials.
Germany's strategic geographical location and its advanced logistics network have facilitated its dominance in the European Ready to drink (RTD) coffee market. The country hosts over 500 trade fairs annually, including major coffee exhibitions that attract global industry players and foster international partnerships. These events have contributed to a 15% increase in RTD coffee exports from Germany to other European countries over the last year. Additionally, the German government's support for innovation in the food and beverage sector has led to increased investments in research and development, with over 200 million euros allocated to beverage innovation initiatives. This has resulted in enhanced production capabilities, allowing German companies to meet domestic and international demand efficiently. The combination of a strong coffee culture, strategic market initiatives, and a focus on sustainability and innovation continues to solidify Germany's leading role in shaping the European Ready to drink (RTD) coffee market landscape.
Europe Ready to Drink Coffee Market Key Players
- Nestlé S.A.
- Arla Foods Group
- Emmi AG
- Luigi Lavazza S.p.A.
- Britvic PLC
- Crediton Dairy Ltd
- illycaffè S.p.A.
- Cargill, Incorporated
- Costa Limited
- PepsiCo, Inc.
- Asahi Group Holdings, Ltd.
Key Segmentation:
By Product
- Ginseng
- Espressos
- Lattes
- Guarana
- Yerba Mate
- Acai Berry
- Others
By Flavor Type
- French Vanilla
- Peppermint
- Hazelnut
- Pumpkin Spice
- Mocha
- Butterscotch
- Caramel
- Others
By Packaging
- Glass Bottle
- Canned
- PET Bottle
- Others
Price Range
- Regular
- Premium
- Ultra Premium
By Serves
- Single Serve
- 8 Oz
- 10 Oz
- 12 Oz
- Multi serve (More Than 12 Oz)
By Distribution Channel
- Off trade/Offline
- Independent Retailers
- Supermarkets/Hypermarkets
- Convenience Stores
- Food Retail Services
- Automated Vending
- Others
- Online trade
- E Commerce platforms
- Company Websites
- Online Food Retail
By End Users
- Boomers
- Millennials
- Gen X
- Gen Y
- Gen Z
- Others
By Country
- UK
- Germany
- France
- Italy
- Spain
- Poland
- Russia
- Rest of Europe
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