Ready-to-Drink (RTD) Coffee & Tea - Australia

The Ready-to-Drink (RTD) Coffee & Tea market in Australia has been experiencing significant growth in recent years, driven by changing consumer preferences and a growing demand for convenient and on-the-go beverages.

Customer preferences: One of the key factors driving the growth of the RTD Coffee & Tea market in Australia is the changing preferences of consumers. With a busy and fast-paced lifestyle, Australian consumers are increasingly looking for convenient options that can be consumed on-the-go. RTD Coffee & Tea products offer a quick and easy solution for consumers who want to enjoy their favorite beverages without the need for brewing or steeping.

Trends in the market: The RTD Coffee & Tea market in Australia has witnessed a surge in product innovation and variety. Manufacturers are introducing new flavors and formulations to cater to the diverse tastes and preferences of consumers. From traditional coffee and tea flavors to unique combinations such as matcha latte and cold brew coffee, there is a wide range of options available for consumers to choose from. Another trend in the market is the growing popularity of healthier and functional beverages. Australian consumers are becoming more health-conscious and are seeking beverages that offer nutritional benefits. As a result, manufacturers are introducing RTD Coffee & Tea products that are low in sugar, enriched with vitamins and antioxidants, and made with natural ingredients.

Local special circumstances: Australia is known for its coffee culture, with a strong demand for high-quality coffee beverages. This has translated into a growing demand for RTD Coffee products that offer the same level of quality and taste as freshly brewed coffee. Manufacturers are focusing on creating RTD Coffee products that replicate the flavor and aroma of freshly brewed coffee, catering to the discerning taste preferences of Australian consumers. Additionally, the hot climate in Australia has contributed to the popularity of RTD Tea products. With its refreshing and thirst-quenching properties, RTD Tea has become a popular choice among Australian consumers, especially during the summer months. Manufacturers are capitalizing on this trend by introducing a variety of RTD Tea flavors, including herbal teas and fruit-infused teas.

Underlying macroeconomic factors: The growing RTD Coffee & Tea market in Australia can also be attributed to favorable macroeconomic factors. Australia has a strong and stable economy, with a high disposable income among its population. This allows consumers to indulge in premium and higher-priced RTD Coffee & Tea products, driving the growth of the market. Furthermore, the increasing urbanization and hectic lifestyles in Australia have led to a rise in the number of cafes and convenience stores, providing easy access to RTD Coffee & Tea products. This convenience factor has further fueled the demand for RTD beverages in the country. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Australia is witnessing significant growth due to changing consumer preferences, product innovation, and favorable macroeconomic factors. With a focus on convenience, health, and variety, manufacturers are catering to the evolving needs of Australian consumers, driving the expansion of the market.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.