Ready to Drink Tea and Coffee Market Report 2026

The ready to drink tea and coffee market size has grown steadily in recent years. It will grow from $52.84 billion in 2025 to $55.37 billion in 2026 at a compound annual growth rate (CAGR) of 4.8%. The growth in the historic period can be attributed to growth in urban lifestyles, rising consumption of on-the-go beverages, expansion of retail and convenience store networks, increasing preference for non-alcoholic drinks, advancements in beverage processing technologies.

The ready to drink tea and coffee market size is expected to see strong growth in the next few years. It will grow to $67.47 billion in 2030 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to increasing demand for clean-label beverages, rising focus on health and wellness drinks, expansion of online beverage sales, growing innovation in packaging formats, increasing adoption of premium ready-to-drink offerings. Major trends in the forecast period include increasing demand for low-sugar ready-to-drink beverages, rising popularity of functional and fortified drinks, expansion of cold brew and specialty coffee formats, growing focus on sustainable packaging solutions, enhanced flavor innovation and product differentiation.

The growing fast food industry is expected to propel the growth of the ready-to-drink tea and coffee market going forward. The fast food industry is expanding rapidly, driven by rising consumer demand for convenience, affordability, and quick-service dining options. Factors such as busy lifestyles, urbanization, and global expansion of fast-food chains continue to accelerate industry growth. The ready-to-drink (RTD) tea and coffee market aligns closely with the fast food sector’s emphasis on convenience, variety, and on-the-go consumption, while also catering to increasing consumer interest in healthier, premium, and functional beverage options. For instance, in October 2023, according to the United States Department of Agriculture (USDA), a US-based federal executive department, Japan’s fast-food sector was expected to maintain its growth momentum between 2022 and 2023, with projected sales rising from approximately $26.6 billion in 2022 to about $28.1 billion in 2023, representing a growth rate of around 5.6%. Therefore, the growing fast food industry is driving the growth of the ready-to-drink tea and coffee market.

Major companies operating in the ready-to-drink tea and coffee market are focusing on developing innovative products, such as cold brew coffee, to meet rising demand for convenient, low-sugar, and premium café-style beverages. Cold brew coffee is produced by steeping coarsely ground coffee beans in cold water for 12 to 24 hours, resulting in a smoother, less acidic, and naturally sweeter flavor profile compared to traditional hot-brewed coffee. For instance, in June 2023, NourishCo, an India-based beverage company and a subsidiary of Tata Consumer Products Limited, launched Tata Coffee Cold Brew. This ready-to-drink product is available in classic, mocha, and hazelnut variants and features a low-sugar formulation tailored for health-conscious consumers seeking premium coffee experiences on the go. The extended cold-extraction process enhances flavor clarity while reducing bitterness, distinguishing it from conventional iced coffee offerings.

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 are Suntory Holdings Limited, Nestlé SA, The Coca-Cola Company, PepsiCo Inc., Unilever plc, Starbucks Coffee Company, Keurig Dr Pepper Inc., Tata Consumer Products Ltd., Asahi Group Holdings Ltd., Danone S.A., Uni-President Enterprises Corporation, Hangzhou Wahaha Group, Nongfu Spring Co. Ltd., Kirin Holdings Company Limited, Ito En Ltd., Tingyi Holding Corp., Illycaffè SpA, UCC Holdings Co. Ltd., Arizona Beverage Company, Marley Beverage Company LLC, Califia Farms LLC.

Asia-Pacific was the largest region in the ready to drink tea and coffee market in 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the ready to drink tea and coffee market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

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.

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