Global iced coffee sales are on the increase, according to Innova Market Insights.
The ready-to-drink or iced coffee market is already established in Asia and as such is showing only modest growth there. But interest in iced coffee products is growing in other parts of the world. The USA, which has an already well-established market, is second only to Japan in size, and continues to show growth.
More interesting perhaps is growth in the European market, led by initiatives from multinational beverage and dairy companies.
However, new product activity levels are limited, as is the market in terms of soft drinks as a whole. Iced coffee accounted for just 3.5% of total soft drink launches in the 12 months prior to September 2011, up from 2.7% five years previously. Traditional hot coffee and iced tea product launches have doubled over the same period.
Launch activity in iced coffee is dominated by the Asian region, accounting for almost three-quarters of total iced coffee launches, said Innova. Europe had launches of 16% and the USA 5%.
The USA market continues to be dominated by Starbucks Frappuccino, jointly developed by Starbucks and PepsiCo, ahead of another Starbucks brand Doubleshot, both of which are now available in parts of Europe. In 2011, Arla Foods and Starbucks introduced the Frappucino range, sold in the retail grocery market in single-serve glass bottles with fairtrade circulation. Now available in 17 countries, Illycaffe’s Issimo canned coffee drinks range was also introduced in the UK in 2011.
Austria has the largest iced coffee market in Europe per capita, but Germany’s market is largest overall, seeing significant new product activity, especially milk-based coffee drinks in lidded cups, in recent years.
Traditional focus on ambient lines has given way to interest in the chilled market, with Swiss dairy company Emmi leading the market. Not surprisingly, its key market is Germany, but it is also available in the USA and other parts of Europe.
The Innova Database reveals that other interesting innovations in the sector in 2011 have included Café Pret a Boire from Lutin Malin in France, claimed to be the first RTD coffee that can be drunk hot, cold or iced; Unilever’s Café Zero range in Spain consisting of a frozen blend of coffee and ice cream; Health is Wealth Nutriccino vitamin- and mineral-fortified bottled coffee drinks in the USA and Bauer’s Caffe Crema Freddo in Germany, with fairtrade certification.