Ready-to-Drink (RTD) Coffee - Russia

The Ready-to-Drink (RTD) Coffee market in Russia has been experiencing significant growth in recent years. Customer preferences for convenient and on-the-go beverages have been driving this trend, as consumers seek out quick and easy options for their caffeine fix.

Customer preferences: In Russia, as in many other countries, there has been a shift towards convenience and portability in the beverage market. Busy lifestyles and the desire for instant gratification have led consumers to seek out ready-to-drink options, including coffee. RTD coffee provides a convenient and hassle-free way to enjoy a cup of coffee without the need for brewing or preparation. This appeals to consumers who are constantly on the move and do not have the time or resources to make coffee themselves.

Trends in the market: One of the key trends in the RTD coffee market in Russia is the increasing popularity of cold brew coffee. Cold brew coffee is made by steeping coffee grounds in cold water for an extended period of time, resulting in a smooth and less acidic flavor profile. This trend is driven by the growing demand for healthier and more natural beverages, as well as the preference for cold and refreshing drinks during the summer months. Cold brew coffee is often marketed as a premium product, appealing to consumers who are willing to pay a higher price for a higher quality and more indulgent beverage. Another trend in the market is the rise of flavored RTD coffee options. In addition to the traditional black coffee, consumers in Russia are increasingly seeking out flavored varieties such as caramel, vanilla, and mocha. These flavored options provide a sweeter and more indulgent taste experience, appealing to consumers with a sweet tooth or those looking to try something different. The availability of a wide range of flavors also allows consumers to personalize their coffee drinking experience and find a flavor that suits their preferences.

Local special circumstances: Russia has a strong coffee culture, with a long history of coffee consumption. However, traditional coffee consumption in Russia has been focused on hot brewed coffee, often served with a meal or as a social activity. The emergence of RTD coffee as a popular beverage option represents a departure from this traditional coffee culture. The convenience and portability of RTD coffee have made it a popular choice among younger consumers, who are more likely to be on the go and looking for quick and easy options.

Underlying macroeconomic factors: The growth of the RTD coffee market in Russia can also be attributed to underlying macroeconomic factors. Russia has experienced a period of economic growth in recent years, leading to an increase in disposable income and consumer spending. As a result, consumers have more money to spend on indulgent and convenient products like RTD coffee. Additionally, the rise of e-commerce and online shopping has made it easier for consumers to access and purchase RTD coffee products, further driving market growth.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.