Europe and the United States show growth in ready-to-drink coffee.

The combined markets of Japan, North America and West Europe for ready to drink (RTD) coffee amounted to 3,163 million liters in 2006, according to a new report from global drinks consultancy Zenith International. Japan, which pioneered the category in the first place, still accounts for a massive 88% of the total, but sales there are now starting to dip, with the strongest growth in Europe and the United States.

"Recent strategic partnerships and marketing initiatives in North America and West Europe have become the main sources of momentum," commented Zenith market intelligence director Gary Roethenbaugh. "While Japan's maturing market is forecast to decline by 1% a year up to 2011, we expect to see compound annual growth of 9% in West Europe and 6% in North America."

The multinationals Coca-Cola Co and PepsiCo have successfully overcome the drink's former unhealthy image, which had been threatening sector growth, and have opened up consumption opportunities and broadened the target market by pushing its natural and indulgent attributes.

"RTD coffee companies have moved on from merely tweaking the coffee-sugar-milk ratio to appeal to different consumer tastes," added Gary Roethenbaugh. "They are now focusing on a whole new generation of consumers by balancing sometimes conflicting demands for products that are weight and health conscious, energy boosting, indulgent and perhaps also offer added functionality."

Zenith predicts North America's share of the combined market will rise from 8% to 11% by 2011, with West Europe's share up from 3% to 5%. Certain markets in West Europe, such as Austria and Norway, are set to see consumption per person outstrip the United States.