LONDON, UK – RTD coffee in Australia was a highly consolidated market in 2013, dominated by only two players, National Foods Ltd with a 63% share, and Parmalat Australia Ltd, which has a 31% share. Both entities are owned by foreign multinational companies, which allows them to invest strongly in the market.
According to Euromonitor’s RTD Coffee in Australia report, off-trade volume sales within the Australian ready-to-drink (RTD) coffee market grew by 4% in 2012, slightly lower than the compound annual growth rate (CAGR) of 6% witnessed over the past four years.
Retail value sales grew by 5% to A$600 million in 2012. Despite weak consumer confidence, RTD coffee sales have grown as consumers consider the products an affordable indulgence. Australians also appreciate the convenience of RTD coffee.
Energy boosting is a trend becoming more and more evident within RTD coffee consumption, and manufacturers are marketing their products as energy drinks, highlighting caffeine content, as well as other ingredients such as guarana.
The target consumers of RTD coffee remains young males; whilst this has not changed, manufacturers are becoming more direct in positioning their brands for a particular audience.
Men are more inclined to consume RTD coffee for its quick “fill and fuel up” attributes, and stopping at a forecourt retailer whilst driving is probably the most common drinking occasion.
The Australian RTD coffee market remained highly consolidated through 2013, dominated by the two above-mentioned players – National Foods Ltd with a 63% share, and Parmalat Australia Ltd, which has a 31% share.
Both entities are owned by foreign multinational companies, which allow them to invest strongly in the market.
A solid performance for the Australian RTD coffee market has been forecast for the next five years, with growth of 3% off-trade volume CAGR and a 2% constant total value CAGR.
RTD coffee will continue to take sales away from other drinks and increase its consumption occasions.
More consumers will adopt RTD coffee as a breakfast replacement beverage, and RTD coffee’s emerging proposition as a convenient energy booster will also encroach into energy drinks’ territory.
