The ready to drink (rtd) tea and coffee market size has grown strongly in recent years. It will grow from $50.96 billion in 2024 to $53.86 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to changing consumer preferences, busy lifestyles and convenience, health and wellness trends, innovations in packaging, 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 $66.38 billion in 2029 at a compound annual growth rate (CAGR) of 5.4%. The growth in the forecast period can be attributed to rise of online retail channels, diversification of flavor profiles, sustainability and eco-friendly packaging, functional ingredients and health benefits, rise of specialty and artisanal products. Major trends in the forecast period include localized and authentic brews, digital marketing and e-commerce growth, functional and sustainable packaging innovations, collaborations and limited edition offerings, adaptation to local preferences.
The expanding fast food industry is expected to drive the growth of the ready-to-drink tea and coffee market in the coming years. The fast food industry is growing rapidly, driven by increasing consumer demand for convenience, affordability, and quick-service dining options. Key factors contributing to this growth include convenience, cost-effectiveness, and global expansion. The ready-to-drink tea and coffee market aligns with the fast food industry's focus on convenience, variety, and the rising consumer preference for quick, healthy, and premium beverage choices. For example, in October 2023, the United States Department of Agriculture (USDA), a U.S.-based federal executive department, reported that Japan's fast food sector is expected to maintain its growth momentum, with projected sales increasing from around $26.6 billion in 2022 to approximately $28.1 billion in 2023, marking a growth rate of about 5.6%. As a result, the growing fast food industry is contributing to the expansion of 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 include Suntory Holdings Limited, Nestlé SA, The Coca-Cola Company, Unilever plc, PepsiCo Inc., Starbucks Coffee Company, Arizona Beverage Company, Danone S.A., Dr Pepper Snapple Group, Uni-President Enterprises Corporation, Hangzhou Wahaha Group, Asahi Group Holdings Ltd., The J.M. Smucker Company, Keurig Dr Pepper Inc., Tata Consumer Products Ltd., The Republic of Tea, Bigelow Tea Company, 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 2024. 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.
Ready-to-drink tea and coffee are pre-packaged beverages that are conveniently prepared for consumption at the time of purchase. These beverages serve as non-alcoholic options for refreshment, catering to individuals' taste preferences.
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 ready-to-drink tea and coffee market consists of sales of original black tea, mango white tea, and lemon ginger herbal tea. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
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.
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 $66.38 billion in 2029 at a compound annual growth rate (CAGR) of 5.4%. The growth in the forecast period can be attributed to rise of online retail channels, diversification of flavor profiles, sustainability and eco-friendly packaging, functional ingredients and health benefits, rise of specialty and artisanal products. Major trends in the forecast period include localized and authentic brews, digital marketing and e-commerce growth, functional and sustainable packaging innovations, collaborations and limited edition offerings, adaptation to local preferences.
The expanding fast food industry is expected to drive the growth of the ready-to-drink tea and coffee market in the coming years. The fast food industry is growing rapidly, driven by increasing consumer demand for convenience, affordability, and quick-service dining options. Key factors contributing to this growth include convenience, cost-effectiveness, and global expansion. The ready-to-drink tea and coffee market aligns with the fast food industry's focus on convenience, variety, and the rising consumer preference for quick, healthy, and premium beverage choices. For example, in October 2023, the United States Department of Agriculture (USDA), a U.S.-based federal executive department, reported that Japan's fast food sector is expected to maintain its growth momentum, with projected sales increasing from around $26.6 billion in 2022 to approximately $28.1 billion in 2023, marking a growth rate of about 5.6%. As a result, the growing fast food industry is contributing to the expansion of 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 include Suntory Holdings Limited, Nestlé SA, The Coca-Cola Company, Unilever plc, PepsiCo Inc., Starbucks Coffee Company, Arizona Beverage Company, Danone S.A., Dr Pepper Snapple Group, Uni-President Enterprises Corporation, Hangzhou Wahaha Group, Asahi Group Holdings Ltd., The J.M. Smucker Company, Keurig Dr Pepper Inc., Tata Consumer Products Ltd., The Republic of Tea, Bigelow Tea Company, 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 2024. 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.
Ready-to-drink tea and coffee are pre-packaged beverages that are conveniently prepared for consumption at the time of purchase. These beverages serve as non-alcoholic options for refreshment, catering to individuals' taste preferences.
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 ready-to-drink tea and coffee market consists of sales of original black tea, mango white tea, and lemon ginger herbal tea. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
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.
Table of Contents
1. Executive Summary2. Ready To Drink Tea and Coffee Market Characteristics3. Ready To Drink Tea and Coffee Market Trends and Strategies4. Ready To Drink Tea and Coffee Market - Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics, and the Recovery from COVID-19 on the Market32. Global Ready To Drink Tea and Coffee Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the Ready To Drink Tea and Coffee Market34. Recent Developments in the Ready To Drink Tea and Coffee Market
5. Global Ready To Drink Tea and Coffee Growth Analysis and Strategic Analysis Framework
6. Ready To Drink Tea and Coffee Market Segmentation
7. Ready To Drink Tea and Coffee Market Regional and Country Analysis
8. Asia-Pacific Ready To Drink Tea and Coffee Market
9. China Ready To Drink Tea and Coffee Market
10. India Ready To Drink Tea and Coffee Market
11. Japan Ready To Drink Tea and Coffee Market
12. Australia Ready To Drink Tea and Coffee Market
13. Indonesia Ready To Drink Tea and Coffee Market
14. South Korea Ready To Drink Tea and Coffee Market
15. Western Europe Ready To Drink Tea and Coffee Market
16. UK Ready To Drink Tea and Coffee Market
17. Germany Ready To Drink Tea and Coffee Market
18. France Ready To Drink Tea and Coffee Market
19. Italy Ready To Drink Tea and Coffee Market
20. Spain Ready To Drink Tea and Coffee Market
21. Eastern Europe Ready To Drink Tea and Coffee Market
22. Russia Ready To Drink Tea and Coffee Market
23. North America Ready To Drink Tea and Coffee Market
24. USA Ready To Drink Tea and Coffee Market
25. Canada Ready To Drink Tea and Coffee Market
26. South America Ready To Drink Tea and Coffee Market
27. Brazil Ready To Drink Tea and Coffee Market
28. Middle East Ready To Drink Tea and Coffee Market
29. Africa Ready To Drink Tea and Coffee Market
30. Ready To Drink Tea and Coffee Market Competitive Landscape and Company Profiles
31. Ready To Drink Tea and Coffee Market Other Major and Innovative Companies
35. Ready To Drink Tea and Coffee Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
Ready To Drink Tea and Coffee Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on ready to drink tea and coffee market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for ready to drink tea and coffee ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The ready to drink tea and coffee market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- the market characteristics section of the report defines and explains the market.
- the market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- the forecasts are made after considering the major factors currently impacting the market. These include:
- the forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- the regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- the competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- the trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) by Type: Ready To Drink Tea; Ready To Drink Coffee2) by Additives: Flavors; Artificial Sweeteners; Acidulants; Nutraceuticals; Preservatives; Other Additives
3) by Packaging: Glass Bottle; Canned; PET Bottle; Aseptic; Other Packagings
4) by Distribution Channel: Supermarkets or Hypermarkets; Convenience Stores; Food Service; Online
Subsegments:
1) by Ready To Drink Tea: Black Tea; Green Tea; Herbal Tea; Fruit Tea; Iced Tea; Specialty Tea2) by Ready To Drink Coffee: Cold Brew Coffee; Iced Coffee; Coffee With Milk; Flavored Coffee; Nitro Coffee; Ready-To-Drink Espresso
Key Companies Mentioned: Suntory Holdings Limited; Nestlé SA; the Coca-Cola Company; Unilever plc; PepsiCo Inc.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
Some of the major companies featured in this Ready to Drink Tea and Coffee market report include:- Suntory Holdings Limited
- Nestlé SA
- The Coca-Cola Company
- Unilever plc
- PepsiCo Inc.
- Starbucks Coffee Company
- Arizona Beverage Company
- Danone S.A.
- Dr Pepper Snapple Group
- Uni-President Enterprises Corporation
- Hangzhou Wahaha Group
- Asahi Group Holdings Ltd.
- The J.M. Smucker Company
- Keurig Dr Pepper Inc.
- Tata Consumer Products Ltd.
- The Republic of Tea
- Bigelow Tea Company
- Marley Beverage Company LLC
- Illycaffè SpA
- Califia Farms LLC
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 200 |
Published | February 2025 |
Forecast Period | 2025 - 2029 |
Estimated Market Value ( USD | $ 53.86 Billion |
Forecasted Market Value ( USD | $ 66.38 Billion |
Compound Annual Growth Rate | 5.4% |
Regions Covered | Global |
No. of Companies Mentioned | 21 |