Ready-to-Drink Beverages Market

Ready-to-Drink Beverages Market Size:

The global ready-to-drink beverages market size reached US$ 225.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 402.0 Billion by 2032, exhibiting a growth rate (CAGR) of 6.66% during 2024-2032. The market is experiencing steady growth driven by the escalating demand for beverages that incorporate natural and functional ingredients, such as vitamins, antioxidants, probiotics, and herbal extracts, changing consumer lifestyles and preferences, and rapid urbanization and busy working schedules of individuals.

Ready-to-Drink Beverages Market Analysis:

• Market Growth and Size: The market is witnessing moderate growth, which can be attributed to the increasing health consciousness among the masses and changing consumer lifestyles.
• Technological Advancements: Innovations, including the development of healthier options, improved packaging, and efficient distribution channels, are propelling the growth of the market.
• Industry Applications: Ready-to-drink beverages find applications across various sectors, including the food and beverage (F&B) industry, healthcare, and fitness, catering to a wide range of consumer preferences.
• Geographical Trends: Asia Pacific leads the market, on account of inflating disposable incomes, urbanization, and changing lifestyles of people. However, North America is emerging as a fast-growing market, driven by the growing demand for RTD coffee, energy drinks, and flavored water.
• Competitive Landscape: Key players in the market are actively engaged in several strategic initiatives to maintain their market share and cater to evolving consumer preferences. These initiatives include product innovation, with a focus on healthier and more diverse beverage options, such as low-sugar, organic, and functional drinks.
• Challenges and Opportunities: While the market faces challenges, such as increasing regulatory scrutiny and sustainability concerns, it also encounters opportunities in developing innovative products and expanding into emerging markets.
• Future Outlook: The future of the ready-to-drink beverages market looks promising, with consumer demand for convenient, healthy, and unique beverage options. This market is likely to witness further consolidation and innovation in the coming years.

Ready-to-Drink Beverages Market Trends:

Changing consumer lifestyles and preferences

Changing lifestyles and busy routines are leading to a shift in consumer preferences towards convenient and on-the-go food and beverage options. Ready-to-drink beverages align perfectly with this trend, offering a quick and hassle-free solution for quenching thirst or satisfying cravings. Modern consumers, often pressed for time, are looking for products that require minimal preparation and can be consumed anytime, anywhere. Moreover, the trend of working from home (WFH) and seeking convenient refreshment options is impelling the growth of the market. This change in behavior is making ready-to-drink beverages a staple in households. Besides this, people are seeking not only convenience but also healthier choices, which is prompting the industry to innovate with healthier ingredients and functional beverages.

Health and wellness trends

People are seeking beverages that not only quench their thirst but also provide health benefits. As a result, there is a growing demand for ready-to-drink beverages that incorporate natural and functional ingredients, such as vitamins, antioxidants, probiotics, and herbal extracts. The increase in health-conscious consumers worldwide is leading to a rise in the production of low-sugar, low-calorie, and sugar-free options. Additionally, there is a growing interest in plant-based and organic ready-to-drink beverages as consumers are looking for sustainable and cleaner label options. Manufacturers are responding to these demands by reformulating their products to align with health and wellness trends. This includes reducing artificial additives, preservatives, and high levels of sugar, while increasing the inclusion of natural flavors and functional ingredients.

Expansion of distribution channels and accessibility

The accessibility of ready-to-drink beverages is expanding, playing a pivotal role in driving the market growth. Manufacturers are investing in diversifying distribution channels, ensuring that their products are readily available to consumers across various platforms. Traditional brick-and-mortar retail is a major distribution channel, with ready-to-drink beverages prominently displayed in supermarkets, convenience stores, and gas stations. However, people are also purchasing a wide variety of beverages online, benefiting from the convenience of doorstep delivery and a broader product selection. Additionally, partnerships with foodservice outlets, such as cafes, restaurants, and vending machine operators, are extending the reach of ready-to-drink beverages. These strategic collaborations make these products available in more locations and cater to consumers seeking options while dining out or on-the-go.

Rising urbanization and busy lifestyles

The global trend of urbanization is leading to a rapid increase in urban populations. In urban areas, people often lead fast-paced lives, with long commutes and busy work schedules. This shift in demographics and lifestyles is strengthening the growth of the market. Moreover, ready-to-drink beverages offer a convenient solution for urban consumers who may not have the time or facilities to prepare beverages from scratch. Whether it is a quick energy boost in the morning, a refreshing drink during lunch breaks, or a convenient way to stay hydrated on the go, these beverages cater to the demands of busy urban dwellers. Furthermore, the urbanization trend is often accompanied by increased income levels, resulting in consumers being more willing to spend on premium and innovative ready-to-drink beverage options, including specialty coffees, artisanal teas, and exotic fruit juices.

Ready-to-Drink Beverages Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product type, packaging, and distribution channel.

Breakup by Product Type:

• RTD Tea
• RTD Coffee
• Energy Drinks
• Yogurt Drinks
• Dairy-based Beverages
• Others
   

RTD tea accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the product type. This includes RTD tea, RTD coffee, energy drinks, yogurt drinks, dairy-based beverages, and others. According to the report, RTD tea represented the largest segment, which can be attributed to the perceived health benefits of tea, including antioxidants and natural flavors. Consumers are turning to RTD tea as a refreshing and healthier alternative to sugary sodas. This segment includes a wide range of options, ranging from traditional black and green teas to herbal and fruit-infused varieties. Innovative packaging and marketing strategies are also contributing to the growth of the market.

The RTD coffee segment is witnessing significant growth, driven by the global popularity of coffee culture. Busy individuals are seeking the convenience of enjoying their favorite coffee beverages on-the-go. This segment includes a diverse array of products, such as iced coffees, cold brews, and espresso shots. Manufacturers are also focusing on flavor innovation and packaging to cater to different consumer preferences and trends like cold brew and plant-based coffee alternatives.

Energy drinks target consumers seeking a quick energy boost. This segment includes products containing caffeine, B-vitamins, and other ingredients designed to provide mental alertness and physical stamina. While popular among young adults and athletes, there is a growing emphasis on offering healthier energy drink options with reduced sugar and natural ingredients to appeal to health-conscious consumers.

Yogurt drinks are gaining traction as a probiotic-rich and nutritious option. They offer a convenient way to consume probiotics for digestive health. These drinks often contain live cultures and come in various flavors and formulations, such as kefir and lassi.

Dairy-based ready-to-drink beverages include products like milkshakes, flavored milk, and dairy-based smoothies. They appeal to consumers looking for a creamy and indulgent experience.

Breakup by Packaging:

• Bottles
• Tetra Pack
• Sachet
• Tin Can
• Others
   

Bottles hold the largest share in the industry

A detailed breakup and analysis of the market based on the packaging have also been provided in the report. This includes bottles, tetra pack, sachet, tin can, and others. According to the report, bottles account for the majority of the market share owing to their convenience, portability, and sustainability. Plastic PET bottles are commonly used for soft drinks and juices, while glass bottles are favored for premium and specialty beverages. The popularity of bottles is driven by their ability to preserve the freshness and flavor of the beverage, along with their recyclability. They are widely available in various sizes, making them suitable for single servings and larger quantities, catering to a diverse consumer base.

Tetra packs are a preferred choice for packaging juices, dairy-based drinks, and some RTD teas. They are known for their shelf-stable properties and the ability to protect beverages from external factors like light and air, ensuring longer product shelf life. Tetra packs come in various sizes, including small single-serving cartons and larger family-sized options.

Sachets are used for powdered or concentrated beverage products, such as instant tea or coffee. They offer convenience in terms of storage and portability. Consumers can easily prepare their drinks by mixing the sachet contents with water. Sachets are cost-effective and reduce packaging waste.

Tin cans are commonly used for packaging energy drinks, carbonated soft drinks, and some alcoholic beverages. They provide excellent protection against light and air, preserving the flavor and carbonation of beverages.

Breakup by Distribution Channel:

• Business to Business (Foodservice)
• Business to Consumers
  • Supermarkets and Hypermarkets
  • Convenience Stores
  • Specialty Stores
  • Online Stores
  • Others
     

Business to consumers represent the leading market segment

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes business to business (foodservice) and business to consumers (supermarkets and hypermarkets, convenience stores, specialty stores, online stores, and others). According to the report, business to consumers represented the largest segment, characterized by direct sales to individual consumers through various retail channels. This includes supermarkets, convenience stores, gas stations, and online retail platforms. B2C distribution caters to the diverse and widespread consumer base, offering a wide range of ready-to-drink beverages, ranging from traditional sodas to healthier options like RTD tea and coffee.

The business-to-business or food service segment focuses on supplying ready-to-drink beverages to commercial establishments, including restaurants, cafes, hotels, vending machines, and institutional buyers like schools and workplaces. These establishments serve beverages to their consumers as part of their food service offerings. B2B distribution is crucial for providing bulk quantities of beverages and catering to the on-premises consumption needs of consumers.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest ready-to-drink beverages market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share driven by factors, such as rising disposable incomes, urbanization, changing lifestyles, and a growing preference for convenient beverage options. Additionally, the popularity of traditional Asian beverages like iced tea, herbal drinks, and milk teas is contributing to the dominance of this region in the market. As a result, numerous international and local brands are expanding their presence in Asia Pacific, thereby fueling the market growth.

North America represents a significant portion of the market, with a mature consumer base that values convenience and variety. The region is known for its consumption of RTD coffee, energy drinks, and flavored water. Health-conscious trends are catalyzing the demand for healthier options, including organic and low-sugar beverages.

Europe is another prominent segment in the market, with a preference for RTD teas, fruit juices, and carbonated beverages. Consumers are interested in natural and organic options, contributing to the growth of such products. Europe also sees a rising demand for functional and fortified beverages, aligning with health and wellness trends.

Latin America exhibits a growing presence in the market, with a strong consumer base for traditional fruit-based and herbal beverages. The region is known for its vibrant market of fruit juices, tropical fruit blends, and flavored water. Convenience stores and street vendors play a significant role in distributing these beverages.

The Middle East and Africa represent a developing segment in the global market, with consumers showing an interest in a wide range of ready-to-drink beverages. Traditional drinks like mint tea and fruit juices are popular, alongside the rising demand for energy drinks and carbonated beverages.

Leading Key Players in the Ready-to-Drink Beverages Industry:

Key players in the market are actively engaged in several strategic initiatives to maintain their market share and cater to evolving consumer preferences. These initiatives include product innovation, with a focus on healthier and more diverse beverage options, such as low-sugar, organic, and functional drinks. Sustainability efforts are also rising, with many companies investing in eco-friendly packaging and supply chain practices to address environmental concerns. Additionally, expansion into emerging markets and strategic partnerships with foodservice outlets, e-commerce platforms, and retailers remain crucial for widening distribution channels and enhancing accessibility to consumers. Furthermore, marketing and branding efforts are playing a vital role in building consumer loyalty and differentiating products in this competitive market.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Asahi Group Holdings Ltd.
• Brown–Forman Corporation
• Keurig Dr Pepper Inc.
• Nestle S.A.
• O-AT-KA Milk Products LLC
• PepsiCo Inc.
• Red Bull GmbH
• Suntory Holdings Limited
• The Coca-Cola Company
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News:

• July 26, 2021: Nestle S.A. and Starbucks Corporation announced a new collaboration to bring Starbucks Ready-to-Drink (RTD) coffee beverages to selected markets across Southeast Asia, Oceania, and Latin America. This expansion will help Nestle to build on its global leadership in coffee and benefit from new growth opportunities in a segment that is developing rapidly and attracting new and younger consumers.
• February 23, 2022: PepsiCO Inc. Launched Nitro Pepsi™, the first-ever nitrogen-infused cola, that is not a traditional soda. It has a creamy, smooth, and mesmerizing cascade of tiny bubbles topped off by a frothy foam head. This is the first time this type of widget technology, often seen in beer and coffee products, is being applied to the cola category and creates the frothy, foamy, and smooth texture unique to Nitro Pepsi.
• November 1, 2021: The Coca-Cola Company announced that it has acquired full ownership of BODYARMOR, a line of sports performance and hydration beverages, that is incremental to the Coca-Cola beverage portfolio and has significant potential for long-term growth.

Ready-to-Drink Beverages Market Report Scope:

Key Questions Answered in This Report:

• How has the global ready-to-drink beverages market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global ready-to-drink beverages market?
• What is the impact of each driver, restraint, and opportunity on the global ready-to-drink beverages market?
• What are the key regional markets?
• Which countries represent the most attractive ready-to-drink beverages market?
• What is the breakup of the market based on the product type?
• Which is the most attractive product type in the ready-to-drink beverages market?
• What is the breakup of the market based on the packaging?
• Which is the most attractive packaging in the ready-to-drink beverages market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the ready-to-drink beverages market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global ready-to-drink beverages market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the ready-to-drink beverages market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global ready-to-drink beverages market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the ready-to-drink beverages industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.