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Boston, MA -- (ReleaseWire) -- 06/12/2014 -- Sales of RTD coffee have grown as consumers seek to enjoy the coffeehouse experience of iced coffee drinks at home and on the go. Americans' love of sweet flavours has enabled the growth of RTD coffee as not all Americans, especially younger consumers, enjoy the bitter taste of brewed coffee. Many have become familiar with iced coffee drinks such as Frappuccino through visits to coffee shops. As a premium priced, indulgent drink, RTD coffee was negatively affected by the Great Recession, with off-trade value sales declining by 5% in 2009. In 2013, new product innovation enabled the category to achieve 10% off-trade value growth, an increase from the 7% review period CAGR.

Competitive Landscape

With an off-trade value share of 72% in 2013, The North American Coffee Partnership, a joint venture set up by Starbucks and PepsiCo, continues to hold a commanding lead in RTD coffee in the US. However, the company did see its off-trade value share decline from 76% in 2012, as it faced competition from new entrants such as WhiteWave Foods Co and Green Mountain Coffee Roasters. The company's Frappuccino was the first mover in RTD coffee, with a flavour approximating to the popular Starbucks blended drink of the same name. The brand also has a large advantage in terms of distribution from its first-mover status, and new entrants often struggle to gain entry into national chained stores. However, more entrants have entered the RTD coffee space.

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Industry Prospects

Sales of RTD coffees are expected to do well over the forecast period as they meet consumer desires for indulgence and caffeine. The sweetness and creaminess of these beverages allow Americans to treat themselves in the afternoons and mornings while also providing them with a caffeinated energy boost. The new availability of the family-sized packages allows for more consumption occasions than before. While consumers may not have served iced coffee to guests in the past due to the time and labour involved, the large size of these containers allows shoppers to serve an iced coffee with the same ease as offering up a glass of refrigerated orange juice.

Report Overview

Discover the latest market trends and uncover sources of future market growth for the RTD Coffee industry in USA with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the RTD Coffee industry in USA, our research will save you time and money while empowering you to make informed, profitable decisions.

The RTD Coffee in USA market research report includes:

- Analysis of key supply-side and demand trends

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