The ready-to-drink (RTD) coffee market in the U.S. has grown substantially in recent years, fueled by consumer demand for convenient, high-quality coffee options. As the market evolves, it’s crucial to understand which brands are leading, where consumers purchase their coffee, and which trends are shaping the industry. Here’s a deep dive into the U.S. RTD coffee market, highlighting popular brands, sales channels, and emerging trends for 2024.

Top Ready-to-Drink Coffee Brands in the U.S.

The U.S. RTD coffee market is dominated by a few key brands, with Starbucks leading the way:

1. Starbucks: 39% of market share
2. Dunkin’: 13%
3. La Colombe: 9%
4. Stok: 4%
5. Califia Farms: 3%

Starbucks maintains a commanding lead, driven by its strong brand recognition and widespread availability. Dunkin’ follows, leveraging its popularity in the Northeastern U.S., while La Colombe continues to grow its market share with premium, craft-style RTD coffee offerings. Stok and Califia Farms focus on niche markets, offering cold brews and plant-based coffee options.

Where Consumers Buy RTD Coffee

RTD coffee is widely available across various retail channels, with a few key insights into where consumers make their purchases:

• Convenience Stores: 37% of sales – Convenience stores dominate RTD coffee sales, particularly with single-serve cans and bottles catering to on-the-go consumers.
• Supermarkets: 34% of sales – Supermarkets primarily sell larger multi-packs and larger-sized iced coffee options, catering to consumers who prefer buying in bulk or for home consumption.
• eCommerce: 13% of sales – eCommerce is growing rapidly, with direct-to-consumer (DTC) brands driving much of this growth. As online shopping becomes more integrated into daily life, more consumers are turning to eComm platforms to stock up on their favorite coffee brands.
• Specialty Stores, Vape Shops, and Delis: 16% of sales – These locations are often regional and cater to more niche audiences, offering unique or locally favored RTD coffee brands.

Emerging RTD Coffee Brands

As consumer preferences shift, several emerging RTD coffee brands are making waves in the market:

• Black Rifle Coffee Company: A veteran-owned brand focusing on premium RTD coffee, Black Rifle has seen strong growth, particularly among consumers seeking bold flavors and a brand with a strong identity.
• Rise Brewing Co.: Known for its nitrogen-infused cold brews, Rise has gained popularity for its smooth, frothy coffee texture and clean ingredients.
• Kitu: Focused on providing keto-friendly and high-protein options, Kitu has successfully targeted the health-conscious consumer with its super-coffee lineup.
• Slate Milk and High Brew: Both brands emphasize high-protein, low-sugar, and dairy-free options, appealing to fitness enthusiasts and those seeking healthier alternatives.

Coffee Consumption by State

While states like California, Texas, New York, and Illinois predictably lead in overall volume due to their large populations, there are some interesting regional trends:

• Northeastern States (Maine, New Hampshire, Massachusetts): These states boast some of the most caffeinated consumers, driven in part by Dunkin’ Donuts’ local dominance and a strong coffee culture.
• Ohio and Pennsylvania: These states stand out in sales of protein-focused coffee drinks, as consumers in these regions increasingly prioritize beverages that offer functional benefits like added protein.

Conclusion

The U.S. ready-to-drink coffee market is experiencing dynamic growth, driven by consumer demand for convenience, premium offerings, and health-conscious alternatives. With Starbucks continuing to dominate and emerging brands like Black Rifle and Rise carving out niche markets, the RTD coffee sector remains highly competitive. As online sales and convenience store purchases grow, brands must stay agile and responsive to evolving consumer preferences. Understanding where consumers buy coffee, what trends are driving growth, and which brands are making an impact is critical to staying ahead in this competitive market.

For more in-depth insights and data-driven strategies, reach out to explore how you can stay ahead in the rapidly evolving RTD coffee market.

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