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

The Ready-to-Drink (RTD) Coffee & Tea market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese consumers have shown a growing preference for convenience and on-the-go consumption, which has contributed to the increasing popularity of ready-to-drink coffee and tea products. These beverages provide a quick and easy option for busy individuals who want to enjoy their favorite coffee or tea flavors without the hassle of brewing or preparing them at home. Additionally, the younger generation in Japan has embraced the trend of ready-to-drink coffee and tea as a fashionable and trendy beverage choice.

Trends in the market: One of the key trends in the ready-to-drink coffee and tea market in Japan is the introduction of innovative and unique flavors. Manufacturers are constantly launching new and exciting flavors to cater to the diverse tastes of consumers. From traditional flavors like matcha and green tea to more unconventional options like caramel macchiato and fruit-infused teas, there is a wide variety of choices available to consumers. This trend of flavor innovation has helped to attract new customers and keep existing ones engaged. Another trend in the market is the increasing demand for healthier and more natural options. Japanese consumers are becoming more health-conscious and are seeking beverages that are low in sugar, calories, and artificial additives. As a result, many manufacturers are developing products that use natural ingredients and offer reduced sugar or sugar-free options. This trend aligns with the global shift towards healthier lifestyles and reflects the growing awareness of the impact of diet on overall well-being.

Local special circumstances: Japan has a strong coffee culture, with a significant number of coffee shops and cafes across the country. This cultural affinity for coffee has influenced the ready-to-drink coffee market, with consumers looking for products that replicate the taste and quality of freshly brewed coffee. Manufacturers have responded to this demand by investing in advanced brewing technologies and using high-quality coffee beans to ensure that their ready-to-drink coffee products deliver an authentic coffee experience. Additionally, the popularity of tea in Japan has also contributed to the growth of the ready-to-drink tea market. Tea is deeply ingrained in Japanese culture and is consumed in various forms, including green tea, matcha, and herbal teas. Ready-to-drink tea products offer a convenient way for consumers to enjoy their favorite teas on the go, whether it's a refreshing iced tea or a warm cup of green tea.

Underlying macroeconomic factors: The growth of the ready-to-drink coffee and tea market in Japan can be attributed to several macroeconomic factors. Firstly, the country has a large and aging population, which has led to an increased demand for convenient and easily accessible food and beverage options. Ready-to-drink coffee and tea products cater to this demand by providing a quick and hassle-free solution for consumers. Secondly, Japan has a highly developed retail infrastructure, with a wide range of distribution channels available to manufacturers. This allows ready-to-drink coffee and tea products to reach a large customer base across the country, including convenience stores, supermarkets, vending machines, and online platforms. The accessibility of these products has contributed to their popularity and widespread adoption. Overall, the ready-to-drink coffee and tea market in Japan is driven by customer preferences for convenience, flavor innovation, and healthier options. The local coffee culture and tea tradition further support the growth of this market. With the ongoing demand for on-the-go beverages and the continuous introduction of new and exciting flavors, the ready-to-drink coffee and tea market in Japan is expected to continue its upward trajectory.

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.