News, Resources for Roasters
Thursday, September 22, 2022
Ready-to-Drink Coffee Sales Hit New Heights
The Ready-to-Drink (RTD) coffee category is one of the dynamic and exciting beverage segments. It’s the pick-me-up the soft drinks market needed since the energy drinks boom. Whether you have already made the leap across to RTD coffee or are thinking about it, we have the lowdown on this growing market.
The RTD coffee category is growing around the world and is really making waves in the UK, especially among older teens and young adults, who are increasingly choosing RTD coffee as a more mature and fashionable alternative to soda-based products.
Market leaders in cold coffee RTD formats are experiencing a surge in sales. Data from Nielsen reveals impressive growth, with the value of sales increasing by 27% during the latest 52-week period and by 61% since 2020.
There are now over 200 products on sale, with the largest brands (Starbucks, Emmi, Arctic, Costa, Jimmy’s, and Private Label) contributing 87% of total sales.
Growing distribution of RTD coffee drinks – at convenience stores, supermarkets, garage forecourts, and sandwich shops – has helped establish to them as front-of-mind products. The COVID-19 pandemic may also have boosted sales as they offered a coffee-shop-style drinking experience from a local supermarket or convenience store whilst restrictions were in place.
RTD Coffee: Key Facts
RTD coffee product lines are generally served in cans, bottles, or Tetra Pak cartons with a typical size of 250ml–300ml. The mean average purchase size is 303ml. The mean average selling price is £1.47
Currently, the UK’s favorite flavor is Latte – a delicious blend of coffee, milk, and sugar. There are also various flavor options available, as well as low-fat and skimmed-milk recipes that appeal to health-conscious consumers. Vegan alternatives featuring cereal and nut milks represent a small, but growing segment that is well positioned for the long run.
Most RTD coffee drinks are made with instant coffee or coffee extract. At Sucafina Instant, we have expertise in sourcing the right types of coffee for blending. This means we can supply the exact profile and type of coffee to make the perfect base for RTD recipes. We offer a specialist range of coffees for every palate and every pocket, such as:
- Spray-dried, agglomerated, and freeze-dried coffees
- Blends and single origins from over a dozen countries
- Fairtrade, Organic, and Rainforest Alliance coffees
- Decaffeinated coffees
- Liquid coffee extract & essences
- Functional or health-and-wellness coffees, including coffee and chicory blends and flavored coffee.
How Can We Help?
- Our expert teams have in-depth knowledge of the development of RTD coffees and can offer your brand teams maximum coffee intelligence and ideation.
- Our multi-layered support can help you develop your new or improve your existing RTD concept. We can support your procurement teams to achieve commercial benefits and cost savings and help you find the right coffee profile.
- In addition, our rapid delivery and stock availability means we can deliver many qualities of coffee from stock in the Europe, North America, and Asia or assist your supply chain team in managing logistics direct from the factory.
- The RTD coffee category is on the rise with promising sales and margins returns. Don’t miss out on this opportunity – get in touch today!
At Sucafina Instant, we are your one-stop shop for instant coffee products. Our aim is to help brands and manufacturers find the right coffee solutions for their needs. We offer an unparalleled range of sustainably sourced instant coffee in bulk and finished goods formats, with a wide array of jars, sachets, pouches, boxes, and tins. We offer everything conceivable for brands and retailers – just ask!