Market Trends of Ready To Drink Beverages Industry
Rising Demand for RTD Coffee With the Rising Working Population Across the World Demanding Convenient RTD Coffee
Demand for RTD coffee is increasing due to rising health concerns. People are looking for convenient drinks that are alternatives to carbonated beverages. Sustainable packaging is one of the major concerns nowadays for consumers; they are demanding recycled aluminum cans as these cans are the least environmentally damaging single-use containers, which save 95% of the energy used to make a new aluminum can. No new material needs to be mined or transported. Key players, such as The Coca-Cola Company, Nestle SA, Suntory Beverage and Food, and Starbucks Corporation, are continuously innovating the packaging of their products. For instance, in 2022, 92% of coffee lovers in the United States stated that they gave high importance to coffee for its health benefits. Similarly, 76% of the Japanese population stated they consumed coffee as a healthy beverage in 2022.
In addition, different coffee blends and flavorings appeal to diverse tastes, ranging from classic black coffee to various flavored options like vanilla, hazelnut, caramel, and mocha. According to Ruigrok NetPanel National Coffee Report, in 2022, the Netherlands, being one of the major consumers of coffee, stated that about 45% of the population prefers black coffee, while a further 25% of the coffee drinkers indicated they prefer to drink cappuccino. As of 2023, 65% of people in the United States take coffee daily, compared to just 55% who consume bottled water.
Asia-Pacific Dominates the Industry
The growing population in the region, the rising health consciousness among individuals, and the increasing per capita income are some major factors driving the demand for ready-to-drink beverages in Asia-Pacific. Moreover, energy drinks with less sugar and natural components are expected to thrive and keep drawing the interest of more people suffering from medical issues like diabetes. According to the International Diabetes Federation, in 2021, around 140.87 million people had diabetes in China. Due to the rising incidence of lifestyle diseases, consumers opt for naturally sweetened or sugar-free ready-to-drink beverages. Moreover, people getting involved in fitness activities are fueling the demand for energy drinks in the region. For instance, around 50 lakh Indians went to gyms or fitness centers in 2023. The number is increasing with the increased fitness concerns among the adult population in the country, which is propelling the sales of energy drinks.
In addition, the companies are introducing innovative products to maintain competitiveness in the market. For instance, in 2023, India's Beyond Water launched its first ready-to-drink (RTD) iced tea in India, tapping on high-quality tea sourcing and consumers demand for healthier beverages. Moreover, the regional players focus on expanding their distribution channels and developing unique products with lucrative packaging styles.
