RTD Tea & Coffee Market Overview, 2023-28

The RTD (ready-to-drink) tea and coffee market is a rapidly growing sector within the global beverage industry. RTD tea and coffee refer to packaged beverages that are already prepared and can be consumed directly without the need for any additional ingredients or brewing. These products are typically available in various flavours and formulations to cater to different consumer preferences. The market for RTD tea and coffee is geographically diverse, with several regions driving growth. Asia Pacific, particularly countries like China, Japan, and India, has emerged as a major market due to the traditional tea and coffee consumption habits in these regions. North America and Europe also contribute significantly to the market. The demand for healthier and more natural beverage options has led to the rise of organic and natural RTD tea and coffee products. Additionally, there is a growing interest in specialty and premium offerings, including artisanal flavours and unique brewing techniques. Consumers are increasingly seeking healthier beverage options, leading to a growing demand for RTD tea and coffee products that offer functional benefits. This includes beverages with natural ingredients, reduced sugar content, added vitamins or antioxidants, and herbal or botanical extracts known for their health-promoting properties. The growing popularity of plant-based diets and lactose-free options has led to an increase in the availability of RTD tea and coffee beverages made from alternative ingredients like soy, almond, oat, coconut, or rice milk. These products cater to consumers with dietary restrictions or those seeking dairy-free alternatives.

According to the research report, Global RTD Tea & Coffee Market Overview, 2023-2028, the market is anticipated to cross USD 145.61 Billion, increasing from USD 103.96 Billion in 2022. The market is expected to grow at a CAGR of 5.86% by 2023-2028, the demand for RTD tea and coffee has grown as a result of the convenience-driven, fast-paced modern lifestyle. Drinks that may be drunk quickly and conveniently without brewing or further preparation are in high demand. The popularity of coffee continues to rise globally, with a growing number of coffee enthusiasts seeking convenient options. RTD coffee satisfies the demand for coffee on-the-go, enabling consumers to enjoy their favourite beverage without the need for brewing equipment or coffee shops. The expansion of coffee culture and the rise of specialty coffee have further contributed to the growth of the RTD coffee market. Based on the types, which include ready-to-drink tea and ready-to-drink coffee, at the global level, the consumption of ready-to-drink tea is higher than that of coffee. RTD tea led the market and accounted for the largest market share of the global industry revenue in 2022. RTD tea is often perceived as a healthier beverage option compared to carbonated soft drinks and other sugary beverages. It contains antioxidants and polyphenols naturally present in tea, which are associated with various health benefits. As consumers prioritise healthier choices, RTD tea has gained popularity as a refreshing and beneficial alternative. Tea has been a popular beverage globally for centuries, deeply ingrained in various cultures and traditions. The RTD tea market leverages the existing consumer familiarity and preference for tea, capitalising on the convenience and ready-to-consume nature of these products. In regions with strong tea-drinking traditions, such as Asia, RTD tea is particularly popular. In the future, RTD coffee is expected to grow at the highest CAGR rate.

Based on the packaging types considered in this report, they are: pet bottles, canned goods, glass bottles, fountains or aseptic, and others. Pet bottles have the largest market share at the global level. The ease of handling coupled with low manufacturing costs is boosting demand for this type of packaging. In addition, as PET bottles can be moulded in different sizes and shapes, as well as produced in multiple colours, a large number of manufacturers are adopting this packaging type. Manufacturers are using attractive packaging solutions to grab consumers' attention. PET bottles are being designed in innovative shapes and forms to enhance brand differentiation and consumer appeal. Unique bottle shapes, ergonomic designs, and distinctive contours help products stand out on store shelves and attract consumer attention. Creative designs that complement the product's branding and target market are sought after to create a memorable packaging experience. In the future, canned food packaging is expected to grow at the highest CAGR rate. Based on the price segment, there are the regular ($0.50 to $2 per unit), popular ($2 to $4), premium ($4 to $8), and super premium price ranges. The regular price range holds the largest market share at the global level. The regular price range appeals to a wide range of consumers, including those seeking affordable options without compromising on taste or quality. It caters to the mass market segment, where price sensitivity plays a significant role in purchase decisions. By offering products at regular prices, companies can capture a larger customer base and maintain a competitive edge.

In addition to this, youth across different developing and developed countries are rapidly moving towards RTD beverages as an alternative to synthetic sports drinks for an immediate increase in energy. Also, consumers' switch from carbonated drinks towards a combination of RTD products to meet the demand for instant energy has further boosted the growth of the global ready-to-drink tea and coffee market. Moreover, the business expansion strategies adopted by key industry players are expected to create lucrative growth opportunities for the market. The introduction of new flavours in these product categories is projected to give a tremendous boost to overall market growth. Based on the distribution channels, off-trade and on-trade, at the global level, the off-trade market has the highest market shares. Off-trade sales channels include supermarkets, hypermarkets, and convenience stores. There are several government rules and initiative for RTD tea & coffee market, Governments may impose taxes and excise duties on RTD tea and coffee products as part of their fiscal policies. These taxes can vary by country and may affect product pricing and affordability. Governments may also use taxation as a means to discourage excessive consumption of sugary beverages and promote healthier choices. International trade agreements and tariffs have an impact on the global RTD tea and coffee market. Governments, along with international organizations, are increasingly promoting sustainability initiatives in the food and beverage industry, including the RTD tea and coffee sector. These initiatives may include regulations or voluntary programs promoting eco-friendly packaging, waste reduction, recycling, and responsible sourcing of ingredients. Governments encourage companies to adopt sustainable practices to minimize environmental impact and promote a circular economy.

Considered in this report

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Global RTD tea & Coffe market with its value and forecast along with its segments
• Region-wise RTD Tea & Coffee market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report:

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa).

Considered in this report

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Global Generator Sales market with its value and forecast along with its segments
• Region-wise Generator sales market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report:

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

By Type

• Ready to Drink Tea
• Ready to Drink Coffee

By Packaging

• Pet Bottle
• Canned
• Glass Bottle
• Fountain/Aseptic
• Others (Pouches, Cartoons and Cups)

By Price

• Regular ($0.50 to $2 per unit)
• Popular Priced ($2 TO $4)
• Premium ($4 to $8)
• Super Premium (above $8)
• Fountain

By Distribution Channel

• Off-trade
• On-trade (Food Service and Vending)

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Smart Lighting industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.