Report Summary
“The RTD coffee market is expected to recover quickly and continue a double-digit growth momentum in the next five years. However, it faces threats from instant and freshly made coffee. To stay relevant, brands should catch up with the plant-based trend and continue investment in flavour innovations. At the same time, functional benefits beyond a refreshing effect should also be promoted in RTD coffee products to differentiate from other coffee types.”
– Joy Yin, Senior Research Analyst
This report will look at the following areas:
- Market growth and competitive landscape in the RTD coffee sector.
- Innovative product launches and marketing activities for RTD coffee.
- Consumers’ usage and perception towards RTD coffee and other coffee types.
- Consumers’ choice factors and perceived premium features when purchasing RTD coffee products.
- Growth strategy for RTD coffee to compete against other coffee types.
Table of Contents
-
Overview
- What you need to know
- Key issues covered in this Report
- Covered in this Report
- What you need to know
-
Executive Summary
-
- The market
- Growth bounced back to pre-COVID levels
- Figure 1: Forecast of retail market value of RTD coffee, China, 2016-2026
- Figure 2: Forecast of retail market volume of RTD coffee, China, 2016-2026
- Companies and brands
- Nestlé leads the market where competition intensifies
- Figure 3: Market share, by leading RTD coffee players, by value, China, 2019-2021
- Innovation targets flavours and texture but on the premise of health
- The consumer
- Lower penetration and consumption frequency than instant and freshly made coffee
- Figure 4: Consumption usage, by segment penetration, 2021
-
- Figure 5: Consumption usage, by consumption frequency, 2021
-
- Figure 6: Consumption usage, by consumption occasion of top 3 coffee types, 2021
- Offline channels dominate, while online channels are chasing close
- Figure 7: Purchasing channels, 2021
- Taste and refreshing effects are the most important choice factors
- Figure 8: Choice factors, 2021
- Alternative sugar options are mostly wanted, while cold brew lacks market education
- Figure 9: Premiumisation features, 2021
- Plant-based is of interest, while alcoholic ingredients are not preferred
- Figure 10: Interest in innovation, 2021
- A vague line between coffee-flavoured beverage and authentic coffee
- Figure 11: Attitudes towards RTD coffee, 2021
- What we think
-
-
Issues and Insights
- Provide functional benefits beyond refreshing effect
- The facts
- The implications
-
- Figure 12: Product examples of RTD coffee with natural functional ingredients, Global, 2020
- Premiumise with reduced-sugar product varieties
- The facts
- The implications
- Figure 13: Product examples of Never Coffee, China, 2021
- Catch up with the plant-based trend from freshly made coffee
- The facts
- The implications
- Figure 14: Percent of “plant-based” claims in RTD coffee launches, Global, by country, Sep 2020-Aug 2021
- Figure 15: Product examples of plant-based RTD coffee, Global, 2021
- Provide functional benefits beyond refreshing effect
-
The Market – Market Size and Forecast
- Growth momentum recovers after the pandemic
- Figure 16: Retail market value of RTD coffee, China, 2016-2026
- Premiumisation trend continues
- Figure 17: Retail market volume of RTD coffee, China, 2016-2026
- Growth momentum recovers after the pandemic
-
Market Factors
- Retail consumption is recovering
- Figure 18: YoY growth (%) in retail sales of goods, China, Aug 2020-Jul 2021
- The healthy eating trend goes on
- Working hours have increased
- Demand for convenience is high
- Retail consumption is recovering
-
Key Players – Market Share
- Nestlé shows clear dominance
- Other strong players
- Players in adjacent categories entered the market
- Figure 19: Market share, by leading RTD coffee players, by value, China, 2019-2021
- Figure 20: Product examples of brands in adjacent categories, China, 2020
- Nestlé shows clear dominance
-
Marketing Activities
- Livestreaming ecommerce
- Figure 21: Examples of RTD coffee products on livestreaming ecommerce platforms, China, 2021
- Enhanced visual effects
- Public transportation: immersive experience
- Figure 22: Nestlé’s advertisement of its new product on the metro, China, 2021
- Packaging: artsy and cartoon designs
- Figure 23: Shan Cheng Yang Hang’s RTD coffee with specially designed package, Taiwan, 2021
- Figure 24: Nescafé x Sou·Sou Lucky Cat Limited edition, Hong Kong, 2021
- Launch peripherals to enhance brand image
- Figure 25: Nestlé Cherry Blossom Soufflé Latte’s peripherals, China, 2021
- Figure 26: Examples of Keigo x Nescafé’s peripherals, Hong Kong, 2021
- Livestreaming ecommerce
-
New Product Trends
- More flavours especially in flora and fruit
- Figure 27: Percentage of flavour component groups in RTD coffee launches, China, Sep 2016-Aug 2021
- Figure 28: Product examples with floral or fruit flavours, China, 2020-2021
- The trend of reducing sugar and fat
- Figure 29: “Minus” claims of RTD coffee, China, Sep 2016-Aug 2021
- Figure 30: Product examples with reduced fat or sugar claims, China, 2020-2021
- Seasonal products are on the rise
- Figure 31: Percentage of “seasonal” claims in new RTD launches, Sep 2016-Aug 2021
- Figure 32: Product examples with seasonal claims, China, 2020-2021
- Bubbling taste emerges
- Figure 33: Product examples with sparkling taste, Global, 2021
- Figure 34: Nitro RTD coffee examples, Global, 2021
- More flavours especially in flora and fruit
-
The Consumer – Consumption Usage
- Penetration is surpassed by instant and freshly made coffee
- Figure 35: Consumption usage, by segment penetration, 2021
-
- Figure 36: Ranking of the penetration of different types of coffee, China, 2016-2021
-
- Figure 37: Consumption usage, by segment penetration of top 3 coffee types, by city tier, 2021
- Major coffee types share similar consumer base
-
- Figure 38: Consumption usage, by cross-segment penetration of top 3 coffee types, 2021
- RTD coffee has a low consumption frequency
-
- Figure 39: Consumption usage, by consumption frequency, 2021
-
- Figure 40: Consumption usage, by consumption frequency of RTD coffee, by income, 2021
- Consumption is more on weekdays than during weekends
-
- Figure 41: Consumption usage, by consumption occasion of top 3 coffee types, 2021
-
- Figure 42: Consumption usage, by consumption occasion of RTD coffee, by age, 2021
- Penetration is surpassed by instant and freshly made coffee
-
Purchasing Channels
- Offline channels dominate, while online channels are chasing closely
- Figure 43: Purchasing channels, 2021
- Young consumers skew towards grab-and-go
- Figure 44: Purchasing channels – offline, by age, 2021
-
- Figure 45: Purchasing channels – online, by age, 2021
- Offline channels dominate, while online channels are chasing closely
-
Choice Factors
- Taste and refreshing effects are the most important attributes
- Figure 46: Choice factors, 2021
-
- Figure 47: Choice factors TURF Analysis, 2021
- Sugar and fat content are not considered as important
- Figure 48: Choice factor – content of sugar and fat, by gender, 2021
- Convenience for weekdays, quality for weekends
- Figure 49: Choice factors, by consumption occasions, 2021
- Taste and refreshing effects are the most important attributes
-
Premiumisation Features
- Alternative sugar options are mostly wanted in premiumisation features
- Figure 50: Premiumisation features, 2021
- Cold brew is not considered a value-add
- Figure 51: RTD coffee with “cold-brewed” claims, China, Sep 2016-Aug 2021
- “Minus” for young consumers, “plus” for older groups
- Figure 52: Premiumisation features – selected, by age, 2021
- Fortified nutrition is more attractive to heavy users
- Figure 53: Premiumisation features, by consumption frequency, 2021
- Alternative sugar options are mostly wanted in premiumisation features
-
Interest in Innovation
- Plant-based gains the most interest…
- Figure 54: Interest in innovation, 2021
- …while alcoholic RTD coffee is the least welcomed
- Better served at chilled temperature
- Figure 55: Interest in innovation, by attitudes towards chilled RTD coffee, 2021
- Plant-based gains the most interest…
-
Attitudes towards RTD Coffee
- Blurred perception but strong preference for coffee chains’ brands
- Figure 56: Attitudes towards RTD coffee, 2021
- Competitive advantages of more flavour choices and better value for money
- Figure 57: Attitudes towards RTD coffee – when compared with other formats of coffee products, 2021
- Target young consumers with chilled canned products
- Figure 58: Attitudes towards RTD coffee formats, 2021
-
- Figure 59: Attitudes towards canned or bottled RTD coffee, by preference for chilled products, 2021
- Figure 60: Attitudes towards RTD coffee formats, by age, 2021
- Perception of sugar and caffeine content influences consumption frequency
- Figure 61: Attitudes towards RTD coffee ingredients, 2021
-
- Figure 62: Attitudes towards ingredients, by consumption frequency, 2021
- Blurred perception but strong preference for coffee chains’ brands
-
Appendix – Market Size and Forecast
-
- Figure 63: Market value of RTD coffee, 2016-2026
- Figure 64: Market volume of RTD coffee, 2016-2026
-
-
Appendix – Methodology and Abbreviations
- Methodology
- Abbreviations
- Methodology
Why Mintel?
Gain access to high quality market research with every purchase of Mintel’s consumer reports. Here's what else you can expect when buying from us:
Mintel’s Clients Portal
After your purchase is completed, you’ll receive an invitation to join Mintel’s Clients Portal which provides instant access to supplementary insights from Mintel’s industry experts.
Multiple Report Formats
Mintel’s reports are available in PDF and PPT formats, and arrive in your inbox alongside an excel datasheet, so you can share Mintel’s market intelligence with ease.
Interactive Databook
Mintel’s bespoke consumer data is presented as an interactive website, so you can deep dive into your chosen topic, explore demographics and download specific statistics.
Custom Presentations
Using Mintel’s custom presentation tool, you can easily incorporate selected research data and analysis into a tailor-made presentation to win over clients and stakeholders.
Chinese Language Available
Mintel’s China consumer reports are also available in a Chinese language version, and can be accessed through our clients portal post-purchase.*
*Please note that translation times may vary, so Chinese language versions may not be accessible immediately. Please contact us for more information.
Browse our sample PDF report below:
Please Note: All of the figures, graphs, and tables in this sample report have been redacted.
Trusted by companies. Big and small.
