Currently, liquid coffee market is witnessing significant trends that reflect the changing preferences and lifestyles of consumers in the dynamic coffee industry. Concentrates, cold brews and ready-to-drink (RTD) products constitute various forms of liquid coffee which is popular among coffee enthusiasts for its convenience and versatility.
One of the most significant trends in this segment is increasing demand for cold brew coffee. Cold brew has gained immense popularity due to its smooth taste profile with less acidity and refreshing characteristics that are appealing to customers. Ready-to-drink cold brews packed in convenient packaging have become a go-to option for on-the-go individuals seeking quick yet satisfying coffee experience. This trend resonates with consumer drift toward iced as well as chilled coffee beverages globally.
The growth of the liquid coffee market is driven by convenience and time-saving solutions. In a busy life and desire for instant gratification, many people prefer liquid alternatives so that they can make it so fast without any hardships. Coffee concentrates which can be diluted with water or milk provide an easy way through which consumers can get a cup of coffee without brewing or using brewing equipment. This trend meets the needs of time-strapped consumers who value efficiency in their daily routines.
Flavor innovation plays a key role in determining dynamics within the liquid coffee market. Manufacturers continue experimenting with different flavor profiles such as flavored coffee concentrates RTD coffees that come with unique combinations of tastes The market has experienced a surge in creative flavors from vanilla infused cold brews to caramel flavored liquid concentrates that cater for variety seeking customers willing to experiment with their choices thereby creating them more fascinatingly distinct than before. This trend concurs with broader beverage industry trends towards flavour exploration.
Sustainability concerns are shaping market trends within liquid coffee sector. Therefore, there is need for eco-friendly packaging as well as sustainable sourcing practices among environmentally conscious consumers who form majority of potential buyers. Recyclable packages have been adopted by some companies manufacturing liquid coffee products also emphasizing on coffee beans sustainable and ethical sourcing. This sustainability-driven approach resonates with environmentally conscious consumers who seek products aligned with their values.
The rise of functional beverages is impacting the liquid coffee market, with the introduction of coffee products enriched with functional ingredients. These days, consumers are not interested in caffeine alone but are looking for products that come with extra health benefits. The outcome has been development of liquid coffees which have extra vitamins, antioxidants and other functional ingredients meant to enhance health and well-being. The trend towards functional coffee echoes the changing consumer mindset where beverages are considered more than just refreshments but as contributors to overall well-being.
The increasing influence of e-commerce is changing how liquid coffee products are marketed and sold. Online platforms provide consumers with easy access to a wide range of liquid coffee options, allowing them to explore and choose from various brands and flavors. Manufacturers have had to increase their online presence through various ways including engaging E-commerce partners as well as direct-to-consumer sales models because of this digital shift. The convenience associated with online shopping is consistent with the general movement by consumers toward streamlined, user-friendly purchasing experiences.
There is a noticeable trend towards customization within the liquid coffee market, as customers are looking for personalized or individualized experiences. Liquid coffee concentrates are provided by certain brands in order to allow adjustment of strength and flavor according to consumers’ preferences. This is a trend that caters for consumers desiring individualized drink choices and echoes the wider move towards personalized consumption experiences within the whole food and beverage industry.
Liquid Coffee Market Size was valued at USD 24.5 Billion in 2023. The Liquid Coffee industry is projected to grow from USD 25.5 Billion in 2024 to USD 35.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.20% during the forecast period (2024 - 2032). Convenience, the ready-to-drink (RTD) trend, flavor and diversity, the expanding coffee culture, packaging innovation, the trend towards health and wellness, and the ability to enjoy a coffee shop experience at home are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Convenience has been an important market driver for liquid coffee, supporting consumer demand and driving market growth. Consumer tastes and decisions about coffee consumption have been moulded by the growing demand for convenience in all facets of modern life. The fact that convenience may save time is one of the main factors driving the liquid coffee business. Coffee is traditionally brewed by grinding the beans, measuring the appropriate amount, and then waiting for it to finish. This procedure can take a while, especially for people who lead hectic lives or who want to get a caffeine fix right now. By doing away with these procedures, liquid coffee enables users to make a cup of coffee in a matter of seconds or minutes. Customers can have their coffee ready to drink by just adding hot water or pouring the liquid coffee into a cup without the need for elaborate preparation.
Liquid coffee is also accessible, which adds to its convenience beyond time savings. Products made from liquid coffee are generally accessible in a variety of retail locations, including supermarkets, convenience stores, and internet marketplaces. Because of this ubiquitous accessibility, customers may get their preferred coffee drinks whenever and wherever they choose. It eliminates the need to go to cafés or coffee shops, especially in locations with little to no access to these places. Due to its accessibility, liquid coffee has become a popular option for people who wish to drink high-quality coffee but may not have the time or money to routinely visit a coffee shop.
Another feature that increases the portability of liquid coffee products is their convenience. Consumers can enjoy the convenience of ready-to-drink (RTD) coffee products such bottled or canned cold brews and iced coffees while on the go. People can easily transport these items in bags, backpacks, or lunchboxes so they can take their coffee with them whether they travel, commute, or take breaks at work. Many consumers' busy, mobile lifestyles are compatible with this portability feature because it gives them access to instant coffee wherever they are and dunkin donuts energy drink provides a flavorful and invigorating boost to keep you going throughout the day.
The practicality of liquid coffee is further demonstrated by how simple it is to use. Because liquid coffee doesn't require complicated coffee-making tools like coffee makers or espresso machines, a wider range of consumers can enjoy it. It makes preparing coffee easier, especially for those who might lack the knowledge or abilities needed to brew coffee. Anyone may quickly and easily make a cup of coffee with liquid coffee without the requirement for specialised equipment or in-depth training.
In addition to cleanliness and simplicity, convenience is a factor in liquid coffee. Contrary to conventional brewing techniques, which require dealing with coffee grounds, filters, and equipment cleaning, liquid coffee avoids the clutter and inconvenience caused by these activities. Customers don't need to clean up after drinking liquid coffee, making it a tempting option for people who want a hassle-free coffee experience.
Furthermore, convenience and the whole consumer experience are tightly related. Customers can simply customise their coffee preferences using liquid coffee items. Manufacturers ensure that customers may select their favourite coffee options by providing a wide variety of flavours, strengths, and variations to suit different tastes. This element of customisation improves the overall coffee experience by enabling customers to easily access their preferred coffee beverages without the need for elaborate preparation or specific requests. Thus, driving the Liquid Coffee market revenue.
The Liquid Coffee Market segmentation, based on Coffee Type includes Espresso, cappuccino, latte, and other beverages. With 45.45% of market revenue, the Espresso sector dominated the industry. Espresso is a potent coffee drink created by applying high pressure to hot water that has been finely ground coffee beans. It acts as the foundation for several coffee beverages, including cappuccinos, lattes, and Americanos.
The Liquid Coffee Market segmentation, based on Serving Type, includes both hot coffee and cold coffee. The category of hot coffee brought in the most money. In many cultures all throughout the world, hot coffee has a lengthy history. It is engrained in social rituals, daily routines, and events like business meetings and social gatherings. Hot coffee is still consumed and preferred by coffee drinkers in part because of its history and familiarity.
Figure 1: Liquid Coffee Market, by Serving Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Liquid Coffee Market segmentation, based on application, includes take away/delivery and dine-in coffees. The category that brought in the most money was take away/delivery. This market serves customers who favor the portability and convenience of liquid coffee, enabling them to sip their coffee beverages while travelling, working, or engaging in other activities.
The Liquid Coffee Market segmentation, based on foodservice type, includes coffeehouse & beverage shops, bakery shops & restaurants, and others. The category of Coffeehouse & Beverage Shops brought in the most money. Coffee shop franchises with a significant global presence and a broad selection of liquid coffee options for customers include Starbucks, Costa Coffee, and Dunkin'. These businesses are renowned for their skill in making speciality coffee drinks, and they provide brewed coffee, espresso-based drinks, cold brews and iced coffees, among other varieties.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Liquid Coffee Market dominated this market in 2022 (45.80%). Convenience is a major market driver for liquid coffee in North America. The need for portable and ready-to-drink coffee options has surged as a result of our fast-paced society and on-the-go lifestyle. Customers' desires for convenience are met by the availability of RTD coffee products at supermarkets, convenience stores, and coffee chains. Further, the U.S. Liquid Coffee market held the largest market share, and the Canada Liquid Coffee market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: LIQUID COFFEE MARKET SHARE BY REGION 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Liquid Coffee market accounts for the second-largest market share. A long-standing tradition of coffee consumption exists in Europe, which has a rich coffee culture. The demand for liquid coffee products has been fueled by this cultural fondness for coffee. Further, the German Liquid Coffee market held the largest market share, and the UK Liquid Coffee market was the fastest growing market in the European region
The Asia-Pacific Liquid Coffee Market is expected to grow at the fastest CAGR from 2023 to 2032. The consumption of coffee has significantly increased recently in the APAC area. Demand for liquid coffee products has been fueled by rising disposable incomes, urbanisation, and the influence of Western coffee culture. Moreover, China’s Liquid Coffee market held the largest market share, and the Indian Liquid Coffee market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Liquid Coffee market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Liquid Coffee industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Liquid Coffee industry to benefit clients and increase the market sector. In recent years, the Liquid Coffee industry has offered some of the most significant advantages to medicine. Major players in the Liquid Coffee market, including Café Amazon, Café du Monde, Caffè Nero, Coffee Beanery, Costa Coffee, Dunkin'Donuts LLC, Four Barrel Coffee, Gloria Jean’s Coffees, McCafé USA, and Starbucks Corporation, and others, are attempting to increase market demand by investing in research and development operations.
Quick-service restaurant franchisor Dunkin' Brands Group Inc. (Dunkin) is in this business. It operates and franchises eateries and ice cream shops under the names of its subsidiaries, Dunkin' Donuts and Baskin-Robbins. Under the Dunkin' doughnuts brand, the firm sells a variety of doughnuts, bagels, muffins, breakfast sandwiches, and hot and cold coffee. Under the Baskin-Robbins brand, it sells a variety of ice creams and frozen drinks. It does its business through a number of distribution centres both domestically and abroad. Through joint ventures and master franchise agreements, Dunkin' franchises its restaurants.
Starbucks Corp. (Starbucks) is a retailer of speciality coffee. Speciality coffee is roasted, marketed, and sold in stores. The business sells a variety of coffee blends, artisan beverages, goods, and food products through its outlets. Additionally, Starbucks provides ready-made drinks, pastries, whole bean and ground coffee, as well as other libations. Teavana, Starbucks Reserve, Princi, and Ethos are some of its brands. Through its owned and licenced stores, the corporation has a presence in Asia-Pacific, the Middle East, Africa, Europe, and the Americas. In China in addition to Nevada, Pennsylvania, Tennessee, and Washington in the United States, it runs roasting, production, storage, and distribution operations. Seattle, Washington, in the US, is home to Starbucks.
Key Companies in the Liquid Coffee market include
Liquid Coffee Industry Developments
July 2022 BLK, Bold Coffee, and Keurig collaborated on the new K-Cup Pod. Through this relationship, a Keurig brewing technology and a well-known coffee brand owned by people of colour were made available to 36 million+ households.
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