Ready-to-drink sub-segments cold brew, functional in vanguard
Through colorful illustrations and silly descriptions, Leo Timmers children’s book “Who Is Driving?” helps kids guess which animal is driving which vehicle. The engaging text offers subtle cues to toddlers as they make their guesses, but not all guessing games are in need of such direction. When analyzing the U.S. coffee market, data shows that the growth of the caffeine-inducing beverage category is being driven by single-serve, convenient segments: ready-to-drink (RTD) and single-cup coffee.
“The $15.1 billion coffee category is projected to grow respectably through 2024 at 22.7 percent to reach an $18.5 billion market, which amounts to a 4.2 percent compound annual growth rate,” says Jill Failla, foodservice analyst with Chicago-based Mintel. “Right now, it’s primarily RTD coffee, with the help of single-cup coffee, driving the segment’s growth, while roasted coffee and instant coffee are losing share. Overall, the coffee market is performing well thanks to the beverage's functional benefits and healthful positioning.”