In recent years, the global coffee industry has witnessed the rapid rise of ready-to-drink (RTD) coffee, with canned and bottled beverages becoming a significant market segment. Combining convenience with increasingly high-quality offerings, RTD coffee has transformed from a quick fix to a serious contender in the premium coffee market. However, the growth trajectory of RTD coffee in different markets varies greatly, with countries like the U.S. and Japan leading the charge, while markets such as Australia are only beginning to see this segment evolve.
In this blog, we’ll examine the booming market for RTD coffee beverages, explore how established brands are adapting to this trend, and highlight how the Australian market differs from global counterparts—particularly how it is yet to fully embrace this shift.
The Global Boom of Ready-to-Drink Coffee
The global RTD coffee market has been expanding at an incredible pace. In countries like the United States, Japan, and parts of Europe, RTD coffee is a mainstream category, with supermarket shelves stocked with a diverse array of products ranging from cold brew to nitro-infused drinks. In Japan, for instance, canned coffee has been a cultural staple for decades, sold in vending machines and convenience stores across the country. Brands likeSuntory Bosshave dominated the Japanese market with their iconic canned coffee, offering a variety of flavours and styles to meet the demands of both casual drinkers and coffee enthusiasts.
In the U.S., the RTD coffee trend has grown exponentially, with major players such asStarbucks,Peet’s Coffee, and specialty brands likeLa Colombecapitalising on the growing consumer preference for convenience without compromising quality. Cold brew and nitro coffee, in particular, have taken the market by storm, offering a smoother, less acidic taste that appeals to a wide range of coffee drinkers. With a clear demand for innovative and health-conscious options, U.S. brands have also introduced plant-based and sugar-free RTD coffee drinks to meet the rising preference for wellness-oriented products.
Australia: A Market Poised for Growth
Unlike the U.S. and Japan, Australia has yet to fully embrace the RTD coffee trend, though the groundwork is being laid for this segment to evolve. Australia has long been known for its sophisticated coffee culture, with consumers placing a premium on freshly brewed, high-quality coffee. Local café culture reigns supreme, and Australians are less likely to reach for a canned or bottled coffee when there’s an artisanal flat white just around the corner.
However, this attitude is beginning to shift. The busy, urban lifestyles in major cities such as Sydney and Melbourne are creating demand for more convenient coffee options. Commuters, busy professionals, and those looking for a quick caffeine fix without sacrificing quality are slowly warming to the idea of RTD coffee. While Australia’s RTD coffee market is still in its infancy compared to global markets, it’s starting to grow, with local and international brands recognising the potential.
The Slow Evolution of RTD Coffee in Australia
Australia’s RTD coffee market has traditionally been dominated by mass-market offerings, with products aimed at convenience-store shoppers rather than the discerning coffee drinker. Brands likeDareandIce Breakhave long been mainstays, but these sugary, milk-based drinks appeal more to those looking for a quick energy boost rather than an authentic coffee experience. In this sense, the Australian RTD coffee market has yet to evolve toward the premium, high-quality options that are becoming more common in other parts of the world.
One key player that has begun to make inroads in Australia isSuntory Boss, a brand that has enjoyed immense success in Japan with its canned coffee products. Recognising the untapped potential of Australia’s emerging RTD market,Suntory Bosshas started introducing its products to Australian consumers, with canned cold brews and lattes that offer a mix of convenience and quality. Their foray into the Australian market signifies a potential shift toward a more sophisticated RTD coffee culture, offering a stepping stone for local consumers to explore high-quality, grab-and-go coffee options.
In addition toSuntory Boss, specialty coffee brands and cold brew producers are entering the RTD market, offering products that reflect the high standards of Australian café culture. For instance,Minor FiguresandSt Alihave introduced ready-to-drink cold brew and nitro options that are less sweet and more aligned with the country’s growing preference for health-conscious, premium coffee.
While Australia has a long way to go in terms of catching up to markets like the U.S. or Japan, it’s clear that local consumers are beginning to demand more from their RTD coffee. The success of boutique cold brew and nitro products demonstrates that there’s room for growth in the premium RTD sector, and as Australians continue to seek out quality and convenience, the RTD coffee market is expected to expand further.
How Established Brands Are Adapting
Major coffee brands, both locally and globally, are recognising the importance of the RTD segment and are adapting their offerings accordingly. In Australia, we’re seeing both global and local players making moves to capitalise on the shift towards premium RTD coffee.
- Starbucks, a global leader in RTD coffee, has extended its reach in Australia, introducing a variety of cold brew and plant-based options that cater to changing consumer preferences. Their RTD products can now be found in supermarkets and convenience stores across the country, offering an accessible taste of their signature drinks.
- Califia Farms, known for its plant-based beverages, has also entered the Australian market with RTD coffee drinks that blend cold brew with almond milk, appealing to the health-conscious consumer. As demand for dairy-free and sustainable products grows, Califia’s presence signals a shift towards more innovative RTD options in Australia.
- Local brands likeSt Aliare starting to bridge the gap between café culture and convenience by offering bottled cold brew and ready-to-drink coffee beverages that align with Australia’s high coffee standards. These products are typically less sweet and more focused on showcasing the natural flavours of the coffee beans, appealing to consumers who value quality over convenience alone.
The Future of RTD Coffee in Australia
As more premium brands enter the Australian market and consumers become more accustomed to high-quality RTD coffee, we can expect to see significant growth in this segment. The rise of health-conscious and sustainable products is likely to drive further innovation in the space, with brands exploring dairy-free, low-sugar, and ethically sourced RTD options.
In addition, as busy lifestyles continue to push the demand for convenience, RTD coffee is likely to become more widely accepted as a complement to Australia’s café-centric coffee culture. Australians are unlikely to give up their flat whites and long blacks anytime soon, but RTD coffee is gradually finding its place in the country’s diverse coffee landscape.
Conclusion: The RTD Revolution in Australia
The rise of ready-to-drink coffee is reshaping the global coffee industry, and while Australia has been slower to adopt this trend, it’s clear that the market is poised for growth. As more consumers seek convenience without sacrificing quality, the RTD coffee segment is set to evolve, offering new opportunities for both global brands and local innovators. With a focus on premium, health-conscious, and sustainable products, Australia’s RTD coffee market has the potential to catch up to its global counterparts, all while maintaining the high standards that define its café culture.
Brands likeSuntory Bossare at the forefront of this shift, bringing the success of their Japanese market experience to Australia, where consumers are beginning to recognise the value of convenience paired with quality. As this market matures, the balance between café coffee culture and RTD convenience will likely shape the future of how Australians consume their coffee.