Ready-to-Drink (RTD) Coffee - Iceland

The Ready-to-Drink (RTD) Coffee market in Iceland has been experiencing significant growth in recent years. Customer preferences for convenient and on-the-go beverages have played a key role in driving this trend.

Customer preferences: Icelandic consumers have shown a growing preference for ready-to-drink beverages, especially coffee. This can be attributed to the convenience and portability offered by RTD coffee products. Busy lifestyles and the need for quick energy boosts have led consumers to seek out convenient options that can be consumed on the move. RTD coffee provides a convenient solution for those who do not have the time to brew a cup of coffee at home or wait in line at a coffee shop.

Trends in the market: One of the key trends in the RTD coffee market in Iceland is the increasing demand for healthier and more natural options. Consumers are becoming more conscious of their health and are seeking out products that are low in sugar and artificial additives. As a result, companies in the RTD coffee market are introducing healthier alternatives, such as low-sugar and organic options, to cater to this demand. Another trend in the market is the rise of premium and specialty RTD coffee products. Icelandic consumers are willing to pay a premium for high-quality and unique coffee flavors. This trend can be attributed to the growing coffee culture in the country, with consumers becoming more knowledgeable and discerning about different coffee varieties and brewing methods.

Local special circumstances: Iceland's unique climate and geographical location have also influenced the development of the RTD coffee market. The cold weather in Iceland makes hot beverages like coffee a popular choice among consumers. However, the convenience of RTD coffee allows consumers to enjoy their favorite beverage without the need for brewing or heating. This has contributed to the popularity of RTD coffee in the country.

Underlying macroeconomic factors: The growing tourism industry in Iceland has also had a positive impact on the RTD coffee market. As the number of tourists visiting the country increases, there is a greater demand for convenient and portable beverages. RTD coffee provides an attractive option for tourists who want to explore the country without compromising on their caffeine fix. In conclusion, the Ready-to-Drink (RTD) Coffee market in Iceland is experiencing growth due to customer preferences for convenience, the demand for healthier options, and the rise of premium and specialty products. The unique climate and geographical location of Iceland, along with the growing tourism industry, have also contributed to the development 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.