Japan Ready-to-Drink (RTD) Coffee Market Size (2024 - 2029)

The Japan ready-to-drink coffee market is experiencing growth driven by consumer preferences for convenience and a strong affinity for coffee. The market size is expanding as younger consumers, particularly millennials and Gen Z, show increasing demand for flavored, healthy, sustainable, and plant-based options. The availability of RTD coffee in various retail channels, along with the popularity of low-calorie and low-sugar options among health-conscious individuals, further contributes to market growth. Specialty coffee brands are intensifying competition by innovating their products, and the trend towards premium quality coffee is also influencing market dynamics.

Market Size of Japan Ready-to-Drink (RTD) Coffee Industry

Japan Ready-to-Drink (RTD) Coffee Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 3.50 %
Market Concentration Low

Major Players

Japan Ready-to-Drink (RTD) Coffee Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan RTD Coffee Market Analysis

The Japan ready-to-drink (RTD) coffee market is projected to register a CAGR of 3.5% during the forecast period.

  • Japanese consumers have a strong affinity for coffee, and the trend of valuing convenience has led to the growing popularity of ready-to-drink (RTD) coffee beverages. Canned cold brew and nitro coffees are particularly favored among younger consumers, while millennial and Gen Z consumers are driving the demand for flavored, healthy, sustainable, and plant-based RTD coffee options. Specialty coffee brands are also innovating their RTD coffee products, creating intense competition in the market. The wide availability of canned coffee in vending machines, convenience stores, and other retail channels is boosting the growth of the market.
  • Furthermore, low-calorie or low-sugar canned coffee is becoming increasingly popular, especially among health-conscious consumers or those looking to manage their weight. Aggressive marketing campaigns targeted toward young consumers have fueled the popularity of RTD coffee among the millennial population. Japanese consumers enjoy a diverse range of coffee varieties and appreciate premium quality coffee with rich flavors, driving manufacturers to expand into the premium coffee range.
  • For example, Suntory Boss offers iced mocha in a can, made from premium quality coffee beans with a rich chocolate flavor. The rising number of Japanese consumers incorporating coffee into their daily life and their increasing interest in new taste profiles in RTD coffee is expected to drive sales growth in the country. According to the All Japan Coffee Association (AJCA), Japan consumed 423.71 million tonnes of coffee in 2021, and this increased to 432.87 million tonnes in 2022.

Japan RTD Coffee Industry Segmentation

Ready-to-drink (RTD) coffee is a packaged coffee beverage that is ready for consumption and is sold in prepared form in a can or a bottle. 

The scope of Japan's ready-to-drink (RTD) coffee market includes segmentation of the market based on packaging type and distribution channel. By packaging type, the market is segmented as bottle and can. By distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, online retail stores, specialty stores, and other distribution channels. 

For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

Packaging Type
Bottle (Pet/Glass)
Can
Distribution Channel
Supermarkets/Hypermarkets
Convenience Stores
Online Retail Stores
Specialty Stores
Other Distribution Channels
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Japan Ready-to-Drink (RTD) Coffee Market Size Summary

The Japan ready-to-drink (RTD) coffee market is experiencing a steady growth trajectory, driven by the increasing consumer preference for convenience and the evolving coffee culture in the country. The market is characterized by a diverse range of offerings, including canned cold brew and nitro coffees, which are particularly popular among younger demographics such as millennials and Gen Z. These consumers are also fueling the demand for flavored, healthy, sustainable, and plant-based options, prompting specialty coffee brands to innovate and enhance their product lines. The widespread availability of RTD coffee in vending machines, convenience stores, and other retail channels further supports market expansion. Additionally, the trend towards low-calorie and low-sugar options is gaining traction among health-conscious consumers, contributing to the market's growth.

The competitive landscape of the Japan RTD coffee market is marked by the presence of both international and regional players, alongside numerous local manufacturers. Key industry players, including Starbucks Corporation, Coca-Cola Company, Lotte Corporation, Asahi Group Holdings, Ltd., and Suntory Holdings Limited, are actively engaging in product innovation, expansion, and targeted marketing strategies to capture a larger market share. The market is also witnessing a shift towards PET-bottled coffee, which offers portability and cost-effectiveness, appealing to the working population. Companies are focusing on differentiating their products through unique flavors and innovative packaging, as seen with Asahi Group Holdings' "foam coffee" offering. This dynamic and fragmented market environment underscores the importance of continuous innovation and strategic marketing in meeting the growing consumer demand for RTD coffee in Japan.

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Japan Ready-to-Drink (RTD) Coffee Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Packaging Type

      1. 2.1.1 Bottle (Pet/Glass)

      2. 2.1.2 Can

    2. 2.2 Distribution Channel

      1. 2.2.1 Supermarkets/Hypermarkets

      2. 2.2.2 Convenience Stores

      3. 2.2.3 Online Retail Stores

      4. 2.2.4 Specialty Stores

      5. 2.2.5 Other Distribution Channels

Japan Ready-to-Drink (RTD) Coffee Market Size FAQs

The Japan Ready-to-Drink (RTD) Coffee Market is projected to register a CAGR of 3.5% during the forecast period (2024-2029)

Starbucks Corporation, Asahi Group Holdings, Ltd., The Coco-Cola Company, Suntory Holdings Limited and Lotte Corporation are the major companies operating in the Japan Ready-to-Drink (RTD) Coffee Market.

Japan RTD Coffee Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)