Ready-to-drink Drink Tea and Coffee Market will reach US$ 172.28 Billion by 2030, according to the report. Coffee and tea are drunk in most countries, but one typically predominates. Millennials, in particular, are turning to tea & coffee mainly due to the health benefits often associated with it, including anti-inflammatory and antioxidant properties, cancer and cardiovascular protection and weight loss stimulation. They are also looking for ways to express themselves via their product choices and are thirsty for authentic stories; this includes where the tea & coffee come from and their unique properties, further enhancing aura and appeal. As a result, brands are placing more emphasis on natural ingredients and honing in on trends and flavours that resonate locally, which has led to an explosion in flavours and combinations.Ready to Drink Tea & Coffee Market was valued at US$ 107.18 Billion in 2023
The RTD tea and coffee market is shifting in quality to keep pace with increased interest in healthier ingredients and authentic experiences. As consumers become savvier, brands respond by bringing tea leaves directly into the plant as part of their brewing process and moving away from tea and coffee made from liquid extracts and powders. Doing so allows brands to enter the 'premium' space, which affects price and how manufacturers connect and communicate with consumers. The category is awash with trends, one being cold-brewed, followed by cold-brewed coffee. It is made with Tea & coffee leaves steeped in cold water for up to 24 hours. This brewing style requires more leaves to ensure that enough flavours are extracted. Although still considered a niche product, its devotees, particularly in Asia and Europe, claim it produces a more full-flavoured and less bitter tea & coffee.
RTD tea and coffee market will grow with a CAGR of 7.02% during the forecast period from 2023 to 2030
The increasing prevalence of on-the-go consumption, particularly among the urban and younger demographics, has significantly contributed to its market growth. Consumers are attracted to the vast array of flavours and varieties available in the ready-to-drink (RTD) tea and coffee segment, catering to their diverse preferences. Moreover, the shift towards healthier and more convenient beverage options has been a key driver in market growth.As health and wellness trends gain momentum, including functional ingredients, natural and clean label formulations, specific health claims, specialty varieties, and reduced sugar content in RTD tea and coffee products have gained prominence. RTD tea and coffee are a subgroup of soft drinks, although they differ in their function with proven health benefits. The altering lifestyles, which encourage on-the-go eating, and a growing trend of replacing meals with smaller nutritional snacks and drinks have resulted in the adoption of RTD Tea and coffee. Growing consumer awareness regarding the health concerns caused by carbonated drinks is leading to a shift towards RTD tea and coffee. Another factor attributing to the market's growth is the health-conscious population who prefer the antioxidant properties of RTD tea.
Positioning RTD tea and coffee as recreational products has significantly benefitted in attracting millennial, further augmenting the product demand. Over the last two decades, rapid socio-economic development has led to a rise in several chronic health conditions such as cancer, heart disease, and diabetes. Health advantages coupled with RTD tea and coffee consumption drive consumers' attention, particularly the aging population, further boosting consumer inclination towards RTD tea and coffee. Various RTD tea and coffee products are being launched to cater to the broad consumer base across geographies. Ready to Drink Tea & Coffee Market was valued at US$ 107.18 Billion in 2023.
Ready-to-drink tea category primarily led the global market for ready-to-drink beverages
Product Category segments the RTD Tea and Coffee Market into RTD Tea and RTD Coffee. The global ready-to-drink tea market is growing due to increased awareness of its health benefits, including weight loss, pain relief, and reduced cholesterol levels. These health focus, rising disposable income, convenient packaging, and expanding cafes and retail outlets are set to drive market growth. Premium brands use social media to engage tech-savvy consumers and tap into a growing online audience, presenting significant growth potential in the forecast period. RTD tea is a rapidly growing segment in the beverage industry, offering tea lovers a convenient on-the-go experience. It includes various tea types like black, green, white, oolong, and herbal, pre-brewed and packaged for instant consumption, eliminating the need for steeping. The global RTD tea market has grown significantly, gaining popularity for its convenience, portability, and perceived health benefits.Glass segment is expected to lead due to its convenience in consumption and storage characteristics
By Packaging Type, the RTD Tea and Coffee Market is divided into Glass, PET, Cans and Others. The Glass segment is poised for a prominent role, and its ascent can be attributed to its inherent convenience for both consumption and storage. Glass containers have gained favour among consumers and industry experts alike for their numerous advantages. They offer a premium drinking experience, ensuring that the taste and quality of beverages are preserved. Furthermore, glass is a sustainable choice, eco-friendly and easily recyclable. Its transparency allows consumers to see the contents, enhancing the visual appeal. As a result, the Glass segment is set to flourish, meeting the evolving demands of convenience and environmental consciousness.Online sector is expected to achieve a higher CAGR during the forecasted period
By Distribution Channel, Ready to Drink Tea and Coffee Market is classified into Supermarkets/Hypermarkets, Convenience Stores, Online and Others. The online sector is poised for robust growth during the projected period in the Drink Tea and coffee industry. As consumer preferences evolve and technology advances, the convenience of online platforms has become increasingly appealing.E-commerce channels offer a vast array of ready-to-drink tea and coffee options, catering to a broader audience. This accessibility and ease of online ordering and delivery drive the online sector towards higher growth. With the ongoing digital transformation and shifting consumer habits, the online segment is anticipated to play a pivotal role in shaping the future of this market.
China popularity of RTD tea reflects the nation's tea culture and its openness to beverage industry innovation
The Ready to Drink Tea Market includes China, India, Turkey, Japan, the United Kingdom, Germany, the United States, Indonesia, Egypt, Australia, and others. Tea has held a central place in Chinese culture for centuries, and the Ready-to-Drink (RTD) tea segment has recently gained immense popularity, especially among busy Chinese consumers, notably the younger generation. A heightened focus on health primarily fuels the growth of RTD tea in China. This trend has led to competition between sugar-free, carbonated, and alcohol-infused variants and traditional soft drinks, attracting specialty tea shops despite intense market rivalry.Essential flavours in this market include oolong, black, green, and jasmine tea. Brands like Chi Forest have entered the tea market, offering sugar-free and fruity sparkling water with erythritol sweeteners to enhance taste without compromising health-conscious appeal. Additionally, Master Kong, a prominent player, introduced reduced-sugar jasmine tea, diversifying its product range and poised for significant off-trade volume growth.
United States market for RTD Coffee made the most significant contribution to the global Tea & coffee market
The Ready to Drink Coffee Market includes the United States, Brazil, France, Germany, Spain, Canada, Netherlands, Sweden, Finland, Denmark and Others. In the United States, the demand for healthy beverages, including various types of RTD coffee, has evolved beyond a trend and is now an integral part of consumers' lifestyles. The focus on health has increased awareness of functional drinks, particularly in the hot RTD coffee segment. Companies are responding by infusing RTD coffee products with nutrients like vitamins, minerals, probiotics, antioxidants, and energy boosters to meet consumer demands.For instance, REBBL introduced REBBL Stacked Coffee, a line of cold-brew coffees designed to provide balanced energy and immunity support through the inclusion of ingredients such as green tea's L-Theanine, oat milk, reishi mushrooms, Lion's Mane mushrooms, and MCTs. This approach addresses consumer preferences for taste and health benefits. RTD coffee appeals to a broad demographic, with a focus on younger consumers, and functional RTD coffee with health claims offers brands an opportunity to differentiate them. Consumers seek various functional benefits in their coffee, including antioxidants, anti-inflammatory properties, low sugar, added protein, probiotics, and varying caffeine levels. The market is also witnessing the launch of dairy-free and vegan coffee options to cater to the convenience and health-conscious on-the-go beverage categories.
Key Player
Global ready-to-drink tea and coffee market players include Nestle S.A., Unilever, Asahi Group Holding, Danone S.A., Monster Beverage, Starbucks Corporation, Pepsico and Coca-Cola Company.The report titled “Ready to Drink Tea and Coffee Market, Global Forecast by Product Category (RTD Tea, RTD Coffee), Packaging (PET Bottle, Glass Bottle, Canned, Others), Distribution Channels (Supermarket/Hypermarket, Specialty Stores, Online Store and Others), RTD Tea Country (China, India, Turkey, Japan, United Kingdom, Germany, United States, Indonesia, Egypt, Australia, Others), RTD Coffee Country (United States, Brazil, France, Germany, Spain, Canada, Netherlands, Sweden, Finland, Denmark, Others), Company Analysis (Nestle S.A., Unilever, Asahi Group Holding, Danone S.A., Monster Beverage, Starbucks Corporation, Pepsico and Coca-Cola Company)" Provides a detailed analysis of Global Ready to Drink Tea and Coffee Market.
Product Category has been covered from 2 viewpoints
1. RTD Tea2. RTD Coffee
Packaging has been covered from 4 viewpoints
1. Glass Bottle2. PET Bottle
3. Canned
4. Others
Distribution Channels has been covered from 4 viewpoints
1. Supermarkets/Hypermarkets2. Convenience Stores
3. Online
4. Others
Country - This report covers the 11 countries Ready to Drink Tea Market
1. China2. India
3. Turkey
4. Japan
5. United Kingdom
6. Germany
7. United States
8. Indonesia
9. Egypt
10. Australia
11. Others
Country - This report covers the 11 countries Ready to Drink Coffee Market
1. United States2. Brazil
3. France
4. Germany
5. Spain
6. Canada
7. Netherlands
8. Sweden
9. Finland
10. Denmark
11. Others
All the companies have been studied from 3 points
- Overview
- Recent Developments
- Sales Analysis
Company Analysis
1. Nestle S.A.2. Unilever
3. Asahi Group Holding
4. Danone S.A.
5. Monster Beverage
6. Starbucks Corporation
7. Coca-Cola Company
8. Pepsico
Table of Contents
Companies Mentioned
- Nestle S.A.
- Unilever
- Asahi Group Holding
- Danone S.A.
- Monster Beverage
- Starbucks Corporation
- Coca-Cola Company
- Pepsico
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 140 |
Published | October 2023 |
Forecast Period | 2023 - 2030 |
Estimated Market Value ( USD | $ 107.18 Billion |
Forecasted Market Value ( USD | $ 172.28 Billion |
Compound Annual Growth Rate | 7.0% |
Regions Covered | Global |
No. of Companies Mentioned | 8 |