European RTD Coffee Market Projected to Reach $4.53 Billion by 2032

Market Dynamics Driving Growth

With over 250 million coffee consumers in Europe, the RTD coffee market is rapidly expanding to meet the diverse preferences of busy urbanites and health-conscious millennials. Innovations such as low-sugar formulations, functional ingredients like probiotics and adaptogens, and eco-friendly packaging have taken center stage. In 2023, over 200 new RTD coffee products were introduced, contributing to premium RTD coffee sales of €1 billion. This trend toward premiumization reflects consumer demand for high-quality coffee experiences and a focus on sustainability, with more than 75% of products featuring recyclable packaging.

Additionally, the rise of plant-based RTD coffee options is evident, with 30 million units sold in 2023. This shift caters to the increasing number of vegan and lactose-intolerant consumers across the continent. The rapid growth in this sector has drawn significant investment, with €500 million funneled into RTD coffee startups and research initiatives over the past year.

Country-Specific Trends and Notable Developments

• Germany: Holding a 17.4% share of the European RTD coffee market, Germany showcases a deep-rooted coffee culture, with over 80 million coffee consumers. The country’s emphasis on sustainability is visible, with more than 70% of RTD products featuring eco-friendly packaging. Its strategic location and advanced logistics network have bolstered Germany’s dominance, along with a government-backed €200 million investment in food and beverage innovation.

• UK: RTD coffee consumption is on the rise, driven by a preference for on-the-go solutions among busy professionals. The UK market is also a key player in online RTD coffee sales, with e-commerce accounting for €1.5 billion in 2023.

Future Outlook

The European RTD coffee market is projected to reach €6 billion by 2025, driven by increased online sales, geographic expansion, and collaborations between coffee brands and tech firms. The premium RTD segment, aligned with consumer demand for convenience and sustainable options, is anticipated to maintain its momentum, offering rich opportunities for brands, investors, and consumers alike.

Exploring Specialty Segments: Espresso and Hazelnut Flavors

The market has seen a particular interest in espresso-based RTD products, with €8 billion in revenue in 2023 alone. Espresso’s authentic, high-quality appeal has fueled its popularity across Europe, with vending machines and single-origin espresso products enhancing consumer engagement.

Meanwhile, hazelnut-flavored RTD coffee has captivated European taste buds, with autumn and winter driving significant demand. The flavor’s compatibility with both dairy and plant-based milk broadens its appeal across dietary preferences, solidifying its status as a consumer favorite.