The current state of the beverage industry in 2019: ready-to-drink coffee and its cold-collected coffee fine-molecule market drive the growth of the coffee industry
Consumers now tend to craft elaborate coffee, but ready-to-drink coffee (including all kinds of cold-collected coffee) seems attractive to consumers who want to stay alive in their daily lives.
According to the US Information Resources Corporation (IRI), sales of refrigerated ready-to-drink coffee in stores in the United States increased by 26.4% in the 52 weeks ending May 19. According to IRI data, Stok and Starbucks' ready-to-drink coffee grew by 69% and 40.5% respectively during the same period, thus leading the overall growth of ready-to-drink coffee.
Gary Hemphill, managing director of New York Beverage Marketing (BMC) Research, pointed out in the September 2018 edition of Beverage Industry that ready-to-drink coffee has ignited in the United States after years of weak performance.
The large-scale development of ready-to-drink coffee can be attributed to several factors. Matthew Barry, senior beverage analyst at Euromonitor, has said that consumers' withdrawal from carbonated soft drinks has improved the performance of this coffee segment to a certain extent. “The decline in carbonated soft drinks and other high-sugar products has created a real opportunity for the emerging soft drink category... Instant coffee is doing a good job in these drinking occasions. Interestingly, many of these occasions were not people’s before. Coffee time. The growth of ready-to-drink coffee represents an absolute increase from the coffee powder capsule, which used to replace other brewing methods."
Another factor contributing to the rapid growth of ready-to-drink coffee is cold-collected coffee. Roger Dilworth, senior editor of BMC, emphasized the success of the cold boom. “(Cold Collection Coffee) allows entrepreneurs to enter the easy-to-open ready-to-drink coffee field, while also providing a diversified platform for veteran enterers... It can be said that if there is no cold-smelling coffee market The emergence of ready-to-drink coffee will slow down."
With the success of the ready-to-drink market and the cold-slurry market, the segment of ground coffee and single-cup coffee has also declined. Although baked and ground coffee account for the largest share of the market segment, the data shows that this is the slowest growing market. According to IRI data, as of May 19, 52 weeks, the sales of ground coffee powder in a number of coffee chain stores in the United States fell by 1.6%.
Dilworth explained: “The bakery and ground coffee segments are mainly favored by older consumers, and their consumption habits are not expected to increase much.” However, he pointed out that young consumers have shown greater performance for high-end ground coffee powder. Interest, this may help to expand sales in this segment.
The second largest category of coffee market share – single cup coffee – also shows signs of maturity. According to IRI data, dollar sales of single-cup coffee increased by 2.6% year-on-year.
Orrick's Barry said: "In recent years, a major shift in the US coffee market has been the decline in coffee capsule sales. At the beginning of this century, this segment was absolutely explosive, but has since slowed significantly. Although the capsules have grown The speed still exceeds the standard grinding and instant coffee, but the growth rate of such products has dropped to a small fraction of the past increase.” He attributed this slowdown mainly to the maturity of the market, as new players entered the field. Fewer and fewer.
However, Barry believes that the lack of recyclable packaging is another noteworthy factor. He added that the garbage problem caused by packaging is still a huge problem, and it will definitely keep people who would use coffee capsules away from it.
Industry experts predict that sales of the entire coffee category will continue to grow steadily in the future. BMC's Dilworth expects the category to grow by 2%, while ready-to-drink coffee will maintain a steady annual growth rate of 10%.