• Asia’s RTD coffee market moving toward ‘premiumization’

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    MAKERS of ready-to-drink (RTD) coffee are moving beyond canned RTD coffee to more premium offerings, as many Asian customers choose sophisticated alternatives, the Department of Trade and Industry (DTI) said in a recent report.

    Euromonitor Digest, a publication of the DTI’s Export Marketing Bureau (DTI-EMB), said more premium offerings use higher quality ingredients, chilled cups and more attractive packaging in the form of PET bottles.

    Introducing more premium products are a step up from the traditional 3-in-1 instant coffee mixes and canned RTD coffee.

    Photo from the Philippine Department of Agriculture

    Photo from the Philippine Department of Agriculture

    “Makers of RTD coffee are moving to introduce better-quality products because consumers are now more aware of good coffee…,” said the Digest, culled from Euromonitor International.

    RTD coffee companies are looking beyond the traditional metal beverage can to offer a more premium look and to provide a taste and texture closer to café-style coffee.

    “Using chilled coffee cups to package a fresh, refrigerated RTD coffee has been one way to appeal to the more sophisticated coffee drinker,” it said.

    Euromonitor Digest expects the trend toward premiumization to continue until 2020.

    “The premiumization trend is expected to continue in Asia’s RTD coffee market as coffee drinkers warm to increasingly sophisticated alternatives,” the Digest added.

    Middle-class residents in Asia’s big cities have also grown accustomed to patronizing specialist shops and “local players to enjoy the specialty drinks and to socialize in an attractive environment.”

    At the same time, economic growth has slowed down in most Asia-Pacific countries outside of India, leading to many Asian customers to economize.

    “As Asian coffee drinkers are increasingly looking for value, more of them may decide to move away from RTD coffee to convenience store if RTD coffee companies are not able to introduce better-tasting varieties,” it added.

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