The category of bottled and canned coffee drinks experienced the highest volume growth among all beverage segments in 2014, according to a new report from Beverage Marketing Corporation (BMC). Volume of ready-to-drink (RTD) coffee products surged by 10.7 percent last year, as compared to that of 2013, trumping growth of bottled water and energy drinks, which rose by 7.3 percent and 6.4 percent, respectively.
While RTD coffee still represents a tiny portion of all sales of packaged beverages, the growth of the category is in stark contrast to that of carbonated soft drinks (CSD) and fruit beverages, which, while large and established drink segments, continue to lose volume and market share. BMC, a consulting, research and advisory services firm focused on the global beverage industry, reported that while overall beverage volume rose by 2.2 percent in 2014, CSD declined by 1 percent and fruit beverages tumbled by 2.8 percent.
BMC did note that CSD volume fell slower than in recent years. Nevertheless, the share for the segment represents just over 41 percent of the overall market, down nearly 2 percent from the year prior. It’s the bottled water category that appears to be the biggest beneficiary of sliding soda sales. BMC described bottled water as having “a remarkable year,” accelerating in volume and market share, particularly as pricing remains aggressive. BMC pointed to four bottled water brands — Nestle Pure Life, Poland Spring, Dasani and Aquafina — represented in the top 10 of all beverage trademarks for 2014, up from three in 2013.
Other notable category gains include RTD tea, which saw 2014 volume rise by 3.7 percent and sports drinks, which experienced a 3 percent bump. Meanwhile value-added water, a category that includes Vitaminwater, among other brands, dipped by .9 percent.