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Coffee market chilled out

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Coffee market chilled out

November 05
12:52 2011

While the ready-to-drink or iced coffee market is relatively mature and showing only modest growth in much of Asia, levels of interest elsewhere in the world appear to be growing, according to Innova Market Insights. This is not only in the relatively well-established US market, which is the number two global market after Japan, but also in Europe, led by initiatives from multinational beverage and dairy companies.

The market analyst goes on to say that the market remains relatively limited so far in terms of soft drinks as a whole, however, as does the level of new product activity.

According to Innova, iced coffee accounted for just 3.5 per cent of total soft drinks launches recorded in the 12 months to the end of September 2011, although this was up from 2.7 per cent five years previously. Activity also remained relatively low when compared with launch numbers of traditional hot coffee products and iced tea launches, both of which saw twice the launch numbers over the same period.

Lu Ann Williams, head of research at Innova Market Insights, says the demand for iced coffee drinks of all kinds now appears to be developing, not only geographically, but also beyond its original home in the foodservice sector of many countries, particularly the US.

“With the growth of the market and the need to compete with alternative beverages, more traditional coffee variants in the RTD sector have been joined by a whole range of increasingly sophisticated flavour choices, as well as light options,” she says. “At the same time, further value has been added with the use of organic and/or FairTrade coffees, as well as coffees of specified type and origin, and the introduction of more user-friendly and convenient packaging formats, including cartons, bottles and lidded cups.”

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