Ready-to-Drink (RTD) Coffee - Portugal

The Ready-to-Drink (RTD) Coffee market in Portugal has witnessed significant growth in recent years, driven by changing consumer preferences and the increasing popularity of coffee as a beverage choice.

Customer preferences: Portuguese consumers have shown a growing preference for convenience and on-the-go consumption, which has contributed to the rise in demand for ready-to-drink coffee products. With busy lifestyles and a need for quick and easy options, RTD coffee offers a convenient solution for consumers who want to enjoy their favorite beverage without the hassle of brewing it themselves.

Trends in the market: One of the key trends in the RTD coffee market in Portugal is the increasing demand for healthier and more natural options. Consumers are becoming more health-conscious and are actively seeking products that are low in sugar, free from artificial additives, and made with natural ingredients. This trend has led to the introduction of a variety of RTD coffee products that cater to these preferences, such as organic and plant-based options. Another trend that has emerged in the market is the growing popularity of cold brew coffee. Cold brew coffee is made by steeping coffee grounds in cold water for an extended period, resulting in a smoother and less acidic taste compared to traditional hot brewed coffee. This trend has gained traction among consumers in Portugal, particularly during the warmer months, as it offers a refreshing and flavorful alternative to hot coffee.

Local special circumstances: Portugal has a strong coffee culture, with a high consumption rate per capita. The country is known for its traditional espresso-based coffee drinks, such as the popular "café com leite" (coffee with milk) and "bica" (espresso). This cultural affinity for coffee has translated into a receptive market for RTD coffee products, as consumers are already familiar with and enjoy the taste of coffee. Additionally, Portugal has a thriving tourism industry, attracting millions of visitors each year. Tourists, especially those from countries with a strong coffee culture, often seek out local coffee experiences and are likely to be interested in trying RTD coffee products as well. This presents an opportunity for both local and international brands to expand their presence in the market and cater to the diverse preferences of tourists.

Underlying macroeconomic factors: The growing economy in Portugal has contributed to increased disposable income and higher purchasing power among consumers. This has allowed consumers to indulge in premium and higher-priced RTD coffee products, driving market growth. Additionally, the rise of e-commerce and online shopping platforms has made it easier for consumers to access a wide range of RTD coffee products, further fueling market expansion. In conclusion, the Ready-to-Drink (RTD) Coffee market in Portugal is experiencing growth due to changing consumer preferences, including a demand for convenience and healthier options. The market is also influenced by local coffee culture and the presence of a thriving tourism industry. The country's growing economy and the accessibility of online shopping platforms have further contributed to the market's development.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.