Trends and Prospects for RTD Coffee in the US

By Eric Penicka, Research Analyst, Euromonitor International

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In recent years, RTD coffee has been dramatically redefined by beverage manufacturers through the advent of cold brew coffee. Cold brew coffee is coffee brewed without heat, with coffee grounds steeped for several hours to extract flavor and caffeine. The end coffee is one which is naturally sweeter, less acidic, more caffeinated and ultimately more artisanal. This kind of coffee is different from traditional iced coffee, which is hot brewed coffee, iced or chilled, and in most cases sweetened and mixed with dairy.

While currently cold brew coffee is typically offered in on-trade establishments (which Euromonitor International would capture under fresh coffee beans consumed in the on-trade), coffee beverage manufacturers have been quick to identify the trend and produce cold brew coffee for RTD consumption. While still nascent, the dust surrounding RTD cold brew’s explosion has slowly begun to settle, with brands such as Stumptown, Califia, and High Brew emerging to define this new niche.

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Coffee-To-Go By Country [Infographic]

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Coffee on-the-go is on the rise. In the U.S. alone, it accounts for 45% of total coffee consumption (second only to Japan, a nation once dominated by tea).

Younger coffee drinkers with increasingly mobile lifestyles are are fueling this trend: About one-third of daily coffee drinkers from 13-24 years old get their java exclusively out-of-home, according to the NCA Generational Report 2017.

However, the popularity of coffee-to-go can vary wildly by country. As the specialty coffee movement gains international momentum, more countries are drinking coffee away from home.

But the practice isn’t popular everywhere — yet.

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Infographic: The Millennial Coffee Market Is Lit

* [Ed. note: Millennial translation gifs available here]

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Millennials are really into their coffee. (It’s no coincidence that BuzzFeed recently launched their own roast … sold through a personality quiz.)

But not all cups are created equal.

Just like the cloud, “coffee” often means something different for the 19-35 year old demographic than it does for previous generations. In fact, Millennial behavior and attitudes are transforming the coffee market. (For starters, they really love espresso.)

But what do these changing consumption trends mean for the future of the coffee industry?

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Data Snapshot: Coffee Brews Success in Asia

The global coffee market continues to brew up a storm, and Asia is playing a key role in its growth.

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New research from Mintel reveals that three out of the five fastest growing retail coffee markets are in Asia. Indonesia is currently the fastest growing packaged retail coffee market with a CAGR of 19.6% over the past five years, while India has had a CAGR of 15.1%, and Vietnam 14.9%.

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The 10 Best Cities for Coffee Lovers

via Derek Miller, SmartAsset

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A unique culture around coffee is growing across America.

According to the 2016 National Coffee Drinking Trends (NCDT) report, more people are consuming coffee out of home. As a result, the number of coffeehouses and cafes are increasing in neighborhoods across the United States.

But not all cities are as coffee-crazed as others. The financial experts at SmartAsset looked through the data to see which American cities are the best for coffee fanatics. (Good news for NCA Convention 2017 attendees – Austin, TX is ranked high on the list!)

Here are the full rankings:

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A New Generation of Products Is Shaping the Future of Coffee

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Younger coffee drinkers want to recreate the customized coffeehouse experience at home, according to new research from Packaged Facts.

The U.S. market for packaged and ready-to-drink coffee sold at retail was estimated at $13.5 billion in 2015, up almost 10% from the year before. By 2020, sales of packaged and ready-to-drink coffee in the U.S. are expected to close in on $18 billion.

Retail dollar sales continue to grow largely because of continued reinvention across the coffee industry, from k-cups to cold brew.

According to Packaged Facts, growth in the coffee industry can largely be attributed to three segments: Continue reading