RTD Coffee Production in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: January 2024
NAICS OD6173Revenue
$5.3bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
10,770
Businesses
1,951
Wages
$XXX.Xm
RTD Coffee Production in the US industry analysis
The relatively nascent Ready-to-Drink (RTD) Coffee Production industry, which makes canned and bottled coffee and espresso drinks, has experienced a surge in demand as US consumers' fast-paced lifestyles have created a need for quick options, especially in the morning. Large producers and new entrants have rushed to meet the swell in demand driven largely by millennials, who make up the largest consumer group for ready-to-drink coffee products. Companies have rolled out countless new products, from new varieties in the dominant RTD cold brew segment to niche options catering to a variety of health, dietary and sustainability conscious preferences. With consumers in a better position to spend on these affordable luxuries as per capita disposable income has grown, the RTD coffee market has benefited from the confluence of these trends. Overall, industry revenue is expected to increase a CAGR of 11.1% to more than $5.3 billion over the five years to 2023, including 7.4% during the current year.The COVID-19 pandemic provided new opportunities for the industry, the result of its significant disruptions. As a result of the pandemic, millions of Americans were forced to adopt a work-from-home routine. This rapid change in lifestyle produced new demand from consumers unable to enjoy premium drinks at coffeehouses, which were initially shuttered and operated under substantial restrictions for years. At the same time, many consumers also saw their economic prospects improve during the pandemic as federal stimulus funding resulted in sizeable increases in per capita disposable income. Consequently, industry revenue grew double-digits in 2020 and 2021, fueling an expansion in profit marginsStrong consumer demand and new product offerings will continue to drive growth for the industry. Americans will continue to increase coffee consumption and RTD coffee beverages will capture a larger share of the coffee market as the modern on-the-go lifestyle resumes. International markets are expected to play an even greater role in the industry's expansion moving forward, as companies seek to realize lower labor costs abroad and domestic producers seek to introduce RTD coffee beverages in new markets. Even as price competition heightens as imports grow, industry revenue will increase a CAGR of 6.5% to nearly $7.3 billion over the five years to 2028.
Trends and Insights
- Starbucks’ to-go Frappuccino created the RTD coffee market during the mid-1990s. Since then, myriad new products have hit the shelves across virtually all downstream beverage markets.
- Cold brew generates the greatest share of revenue for RTD coffee producers. It’s more labor-intensive to make and therefore sells for higher prices.
- The largest number of RTD coffee producers are located in the West. California anchors the West region, providing access to international markets and boasting the largest consumer market of any state.
- There are myriad substitutes for RTD coffee, including energy drinks, RTD tea, and traditional coffee and tea. The plethora of alternative options makes the industry highly competitive.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 11.1 % over the past five years, to reach an estimated $5.3bn in 2024.
Trends and Insights
As time-poor consumers embrace RTD coffee, industry booms
- RTD coffee was virtually nonexistent before Starbucks introduced its to-go Frappuccino during the mid-1990s.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
As time-poor consumers embrace RTD coffee, industry booms
- RTD coffee was virtually nonexistent before Starbucks introduced its to-go Frappuccino during the mid-1990s.
Biggest companies in the RTD Coffee Production in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Nestle Sa | 2,193.3 | 250.0 | 11.4 | |
Pepsico, Inc. | 1,528.2 | 227.8 | 14.9 | |
Danone Sa | 507.0 | 59.5 | 11.7 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Cold brew, Iced coffee and Energy coffee. Cold brew is the largest segment of the RTD Coffee Production in the US.
Trends and Insights
Cold brew is production intensive, selling at higher prices
- Cold brew coffee is defined as the process of steeping coffee grounds in room temperature or cold water for an extended period of time.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- There are no industries to display.
International industries
- Coffee & Tea Production in Canada
- Tea, Coffee and Other Food Manufacturing in Australia
- Coffee Processing in the UK
Table of Contents
About this industry
Industry definition
Companies in this industry produce canned and bottled coffee and espresso drinks.
What's included in this industry?
Producing ready-to-drink coffee beveragesCompanies
Nestle SaPepsico, Inc.Danone SaPurchase this report to view all 3 major companies in this industry.
Related Terms
RTDCOLD BREWICED COFFEEIndustry Code
NAICS 31211 - RTD Coffee Production in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Starbucks’ to-go Frappuccino created the RTD coffee market during the mid-1990s. Since then, myriad new products have hit the shelves across virtually all downstream beverage...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Cold brew generates the greatest share of revenue for RTD coffee producers. It’s more labor-intensive to make and therefore sells for higher prices.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The largest number of RTD coffee producers are located in the West. California anchors the West region, providing access to international markets and boasting the largest con...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
There are myriad substitutes for RTD coffee, including energy drinks, RTD tea, and traditional coffee and tea. The plethora of alternative options makes the industry highly c...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The RTD coffee industry was borne from Starbucks’s sale of frappuccinos in cans at their outlets. Consumers have since flocked to these drinks, encouraging a variety of small...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Nestle Sa's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Pepsico, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Danone Sa's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Nestle Sa, and factors influencing its performance in the industry
- Description and key data for Pepsico, Inc., and factors influencing its performance in the industry
- Description and key data for Danone Sa, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Rules set by the FDA govern ingredient use and content listing by manufacturers. Failure by companies to comply with rules can result in product recall and civil or criminal ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins across the industry are high because of the premium nature of RTD products. The introduction of new products based on innovation by manufacturers is essential ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the RTD Coffee Production in the US industry in United States in 2024?
The market size of the RTD Coffee Production in the US industry in United States is $5.3bn in 2024.
How many businesses are there in the RTD Coffee Production in the US industry in 2024?
There are 1,951 businesses in the RTD Coffee Production in the US industry in United States, which has grown at a CAGR of 21.2 % between 2019 and 2024.
Has the RTD Coffee Production in the US industry in United States grown or declined over the past 5 years?
The market size of the RTD Coffee Production in the US industry in United States has been growing at a CAGR of 11.1 % between 2019 and 2024.
What is the forecast growth of the RTD Coffee Production in the US industry in United States over the next 5 years?
Over the next five years, the RTD Coffee Production in the US industry in United States is expected to grow.
What are the biggest companies in the RTD Coffee Production in the US market in United States?
The biggest companies operating in the RTD Coffee Production market in United States are Nestle Sa, Pepsico, Inc. and Danone Sa
What does the RTD Coffee Production in the US in United States include?
Producing ready-to-drink coffee beverages and are part of the RTD Coffee Production in the US industry.
Which companies have the highest market share in the RTD Coffee Production in the US in United States?
The company holding the most market share in United States is Nestle Sa.
How competitive is the RTD Coffee Production in the US industry in United States?
The level of competition is high and increasing in the RTD Coffee Production in the US industry in United States.
