Ready-to-Drink (RTD) Coffee - Japan

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

Customer preferences: Japanese consumers have shown a growing preference for convenient and on-the-go beverage options, which has contributed to the rise in popularity of RTD coffee. The fast-paced lifestyle in Japan, coupled with the increasing number of people commuting to work, has created a demand for portable and ready-to-consume coffee products. Additionally, there is a cultural appreciation for coffee in Japan, with many consumers enjoying the taste and aroma of coffee as a daily indulgence.

Trends in the market: One of the key trends in the RTD coffee market in Japan is the diversification of product offerings. Manufacturers are constantly introducing new flavors and variations to cater to the evolving tastes of consumers. This includes innovative combinations such as coffee with milk, coffee with fruit flavors, and even coffee with alcohol. These new and unique flavors have captured the interest of consumers and have contributed to the growth of the market. Another trend in the market is the emphasis on health and wellness. With an increasing focus on personal well-being, consumers are seeking healthier options even in their beverage choices. As a result, manufacturers have started offering low-sugar or sugar-free RTD coffee options, as well as products that are enriched with vitamins and antioxidants. This trend aligns with the global shift towards healthier lifestyles and has resonated well with health-conscious Japanese consumers.

Local special circumstances: Japan has a well-established coffee culture, with a long history of coffee consumption. This has created a favorable environment for the growth of the RTD coffee market. Additionally, Japan has a strong distribution network, with convenience stores and vending machines being widely available throughout the country. This widespread accessibility has made it easier for consumers to purchase RTD coffee products, further driving the market growth.

Underlying macroeconomic factors: The growing popularity of RTD coffee in Japan can also be attributed to favorable macroeconomic factors. The country has experienced steady economic growth in recent years, leading to increased disposable income among consumers. This has allowed for greater spending on convenience products, including RTD coffee. Furthermore, the aging population in Japan has also contributed to the growth of the market, as older consumers often prefer the convenience of ready-to-drink beverages. In conclusion, the Ready-to-Drink (RTD) Coffee market in Japan is experiencing significant growth due to customer preferences for convenience, the diversification of product offerings, and the emphasis on health and wellness. The local special circumstances, such as the established coffee culture and strong distribution network, have also played a role in the market's development. Additionally, favorable macroeconomic factors, such as steady economic growth and an aging population, have further fueled the growth 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.