Ready To Drink Tea and Coffee Global Market Report 2024

The ready to drink (rtd) tea and coffee market size has grown strongly in recent years. It will grow from $48.26 billion in 2023 to $51.04 billion in 2024 at a compound annual growth rate (CAGR) of 5.8%. The growth observed in the historical period can be attributed to shifts in consumer preferences, busy lifestyles emphasizing convenience, health and wellness trends, and innovations in packaging, as well as effective marketing and branding strategies.

The ready to drink (rtd) tea and coffee market size is expected to see strong growth in the next few years. It will grow to $62.3 billion in 2028 at a compound annual growth rate (CAGR) of 5.1%. The anticipated growth in the forecast period can be attributed to the rise of online retail channels, the diversification of flavor profiles, a focus on sustainability and eco-friendly packaging, the incorporation of functional ingredients and health benefits, and the increasing popularity of specialty and artisanal products. Key trends expected in the forecast period encompass the emergence of localized and authentic brews, the growth of digital marketing and e-commerce, innovations in functional and sustainable packaging, collaborative efforts, and the introduction of limited edition offerings, all adapted to local preferences.

The anticipated rise in the popularity of ready-to-drink beverages is poised to drive the growth of the ready-to-drink tea and coffee market in the future. Ready-to-drink beverages are single-use drinks that come pre-packaged and are ready for immediate consumption. These beverages offer the convenience of on-the-go consumption without the need for preparation, leading to an increasing demand for such products and benefiting the ready-to-drink tea and coffee market. For instance, a report from the Distilled Spirits Council in September 2022 revealed a significant increase in both sales and volume of spirits-based Ready-to-Drink (RTD) beverages. Supplier revenue for pre-mixed cocktails or spirits-based RTDs grew by 42.3% to $1.6 billion in 2021, with a 56% increase in volume, selling 13.1 million more cases than in 2020. Therefore, the growing preference for ready-to-drink beverages is a key driver for the ready-to-drink tea and coffee market.

The expected growth in urbanization is set to propel the ready-to-drink tea and coffee market in the future. Urbanization is the process by which rural areas transform into urban regions due to economic development and industrialization. Ready-to-drink tea and coffee align with the urbanization trend by providing convenient, on-the-go beverage options for busy city dwellers. According to the World Bank Group in April 2023, over half of the global population currently resides in urban areas, and this urban population is projected to increase to 6 billion by 2045, marking a 1.5 times increase. Therefore, increasing urbanization is a driving force for the ready-to-drink tea and coffee market.

Major players in the ready-to-drink tea and coffee market are actively innovating products, such as Biodynamically grown organic green tea, to offer consumers diverse beverage options. Biodynamically grown organic green tea involves cultivating green tea using farming practices that adhere to both organic and biodynamic principles. For example, in November 2022, Honest, Inc., a subsidiary of The Coca-Cola Company, introduced Honest Tea to enter the ready-to-drink tea market. Honest Tea aims to provide a unique and refreshing experience with its iced green tea sourced from the prestigious Makaibari Tea Estate.

Leading companies in the ready-to-drink tea and coffee market are concentrating on introducing new product variants, such as cold brew coffee, to diversify beverage options for consumers. Cold brew coffee is produced by steeping coarsely ground coffee beans in cold water for an extended period, typically 12-24 hours. For instance, in June 2023, NourishCo., a subsidiary of Tata Consumer Products Limited, launched Tata Coffee Cold Brew in classic, mocha, and hazelnut variants. This low-sugar ready-to-drink beverage aims to capture market share through the right brand, product, and go-to-market strategy.

In March 2023, Grind, a boutique café company based in London, acquired Bottleshot Coffee for £15 million ($17.1 million). This acquisition positions Bottleshot Coffee to lead Grind's entry into the underdeveloped UK ready-to-drink (RTD) coffee sector. Bottleshot Coffee is a UK-based manufacturer of ready-to-drink coffee.

Major companies operating in the ready to drink tea and coffee market report are Suntory Holdings Limited, Nestlé SA, The Coca-Cola Company, Unilever plc, PepsiCo Inc., Starbucks Coffee Company, Monster Beverage Corporation, Arizona Beverage Company, Danone S.A., Dr Pepper Snapple Group, Ajinomoto General Foods Inc., Ting Hsin International Group, Uni-President Enterprises Corporation, Dunkin' Brands Group Inc., Hangzhou Wahaha Group, Asahi Group Holdings Ltd., The J.M. Smucker Company, The Hershey Company, The Kraft Heinz Company, Keurig Dr Pepper Inc., Nestle SA, Tata Consumer Products Ltd., The Republic of Tea, Bigelow Tea Company, South Beach Beverage Company Inc., Honest Tea Inc., Marley Beverage Company LLC, Illycaffè SpA, Califia Farms LLC.

Asia-Pacific was the largest region in the ready to drink tea and coffee market in 2023. North America is expected to be the fastest-growing region in the ready-to-drink tea and coffee market report during the forecast period. The regions covered in the ready to drink tea and coffee market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ready to drink tea and coffee market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories of ready-to-drink tea and coffee include ready-to-drink tea and ready-to-drink coffee. Ready-to-drink (RTD) tea is typically available in black or green variations, served either hot or cold, providing a convenient hydration choice for individuals on the go. Various additives such as flavors, artificial sweeteners, acidulants, nutraceuticals, preservatives, and others are incorporated, and these beverages are packaged in glass bottles, cans, PET bottles, aseptic containers, and other formats. Distribution is carried out through diverse channels, including supermarkets or hypermarkets, convenience stores, food service outlets, and online platforms.

The ready to drink tea and coffee market research report is one of a series of new reports that provides ready to drink tea and coffee market statistics, including ready to drink tea and coffee industry global market size, regional shares, competitors with a ready to drink tea and coffee market share, detailed ready to drink tea and coffee market segments, market trends, and opportunities, and any further data you may need to thrive in the ready to drink tea and coffee industry. This ready to drink tea and coffee market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


This product will be delivered within 3-5 business days.