Ready to Drink Tea and Coffee Market Size, Share, Industry Trends, 2020-2025

Press Release:

Global Ready to Drink Tea and Coffee Market to Grow at a CAGR of 8% During 2019-2024, Fostered by Declining Sales of Carbonated Beverages

*As the coronavirus disease (COVID-19) crisis takes over the world, we are continuously tracking the changes in the markets, as well as the purchase behaviours of the consumers globally and our estimates about the latest market trends and forecasts are being done after considering the impact of this pandemic.

Ready to Drink Tea and Coffee Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025

The global ready to drink tea and coffee market reached US$ 106 Billion in 2019. Ready to drink (RTD) tea and coffee refer to pre-prepared packaged beverages that are ready for consumption at the time of purchase. Some of the commonly available RTD tea includes fruit, black, green, herbal, matcha, oolong and iced, and RTD coffee includes yerba mate, guarana, acai berry, ginseng, taurine and iced variants. They are manufactured using various additives, extracts, preservatives, artificial and natural sweeteners, flavors, acidulants and nutraceuticals. These products are usually fortified with essential vitamins and minerals and are a rich source of antioxidants. For instance, RTD green tea is infused with catechin, and black coffee is enriched with vitamin B, potassium, magnesium, polyphenols and caffeine. They are widely served in cans, glass bottles, polyethylene terephthalate (PET) bottles and aseptic cartons. In comparison to the conventionally used beverage mixes, powders or brew-it-yourself tea or coffee products, RTD tea and coffee offer various health benefits and enhanced convenience to the consumers. As a result, IMARC Group expects the market value to reach US$ 162 Billion by 2025.

Rising Popularity of Ready-to-Drink Beverages Boosting the Market Growth

The market is primarily driven by the increasing demand for RTD beverages, such as packaged teas and coffees, across the globe. The changing lifestyles, increasing expenditure capacities and shifting dietary preferences of consumers are further providing a thrust to the market growth. Due to the increasing working population and hectic schedules, the consumption of RTD tea and coffee products has escalated significantly. Consumers are increasingly preferring food and beverages that require minimum time to prepare and can be consumed on-the-go. The canned and bottled packaging of these beverages are also adding to the convenience of consumers, thereby increasing their overall demand.

In line with this, rising health consciousness and awareness regarding the adverse effects of prolonged consumption of carbonated drinks are acting as other growth-inducing factors. Furthermore, the increasing prevalence of chronic lifestyle ailments, such as heart diseases, diabetes, obesity and cancer, along with the rising geriatric population, which is more susceptible to such conditions, has enhanced the demand for RTD beverages to meet the patients' dietary requirements. RTD teas and coffees can also be customized to provide personalized health benefits to the consumers to fulfill the nutritional gaps, especially in women and children. Furthermore, the youth across various developed and developing countries are shifting to RTD beverages in place of synthetic sports drinks for an instant boost of energy.

Significant growth in the Food and Beverage Industry Favoring the Market Growth

The increasing demand for ready-to-drink tea and coffee is further supported by significant growth in the food and beverage industry across the globe. Hotels, cafes and quick serving restaurant (QSR) chains are offering a wide variety of RTD beverages to their customers. They are also used as recreational products to attract the younger population seeking a healthier alternative to carbonated drinks that have high sugar content. RTD teas and coffees have low-calorie content and are also known to relieve stress, anxiety and improve mental functioning, energy levels, hydration levels and eyesight. Certain variants infused with herbs and spices, such as ginger, cumin, fennel, basil and rosehip, also have anti-inflammatory compounds that aid in reducing body pain, bloating, arthritic joint pain and muscle soreness. Moreover, RTD coffees are being considered as a gourmet product and are widely preferred by consumers to relax from their hectic schedules.

Shifting Preference Toward Organic Product Variants to Create Positive Outlook for the Market

The emerging trend of better-for-you beverages has significantly enhanced the demand for RTD tea and coffee. The rising health consciousness among the masses has also led to the increasing demand for healthier and organic beverages that are manufactured using non-genetically modified organism (GMO) ingredients or functional formulations. The product manufacturers are also developing variants with improved flavors that are produced using plant-based milk and infused with fruity and floral flavors, such as apple, peach, orange, lavender and rose.

Proliferating Online Retail Channels to Propel the Market Growth

The market is further driven by aggressive promotional activities by product manufacturers on various social media platforms through the Internet. In line with this, millennials are among the largest consumers of RTD beverages and are highly influenced by social media personalities. Product vendors are using innovative marketing strategies to promote these beverages through influential celebrities and sports personalities to reach and attract a broader consumer base. They are using attractive packaging solutions to grab the consumer’s attention and provide them with an authentic and luxurious experience through their high-quality products. Through online retail platforms, consumers are now able to place orders from the convenience of their homes and the product manufacturers and vendors are able to reach the audiences present in remote locations. They can also now operate with minimal expenses and are increasingly investing in the research and development (R&D) activities of the products.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global ready to drink tea and coffee market report, along with forecasts for growth at the global, regional and country level from 2020-2025. Our report has categorized the market based on region, product, additives, packaging, price segment and distribution channel.

Market Breakup by Product:
- RTD Tea
  - Black Tea
  - Fruit & Herbal Based Tea
  - Oolong Tea
  - Green Tea
- RTD Coffee
  - Ginseng
  - Vitamin B
  - Taurine
  - Guarana
  - Yerba Mate
  - Acai Berry
Market Breakup by Additives:
- Flavors
- Artificial Sweeteners
- Acidulants
- Nutraceuticals
- Preservatives
- Others
Market Breakup by Packaging:
- Glass Bottle
- Canned
- PET Bottle
- Aseptic
- Others
Market Breakup by Price Segment:
- Premium
- Regular
- Popular Priced
- Fountain
- Super Premium
Market Breakup by Distribution Channel:
- Off-trade
  - Independent Retailers
  - Supermarkets/Hypermarkets
  - Convenience Stores
  - Others
- On-trade
  - Food Service
  - Vending
Market Breakup by Region:
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- Latin America

Competitive Landscape:

The report has also analyzed the competitive landscape of the market, with some of the key players being Asahi Breweries, Dr Pepper Snapple Group, Starbucks, Pepsico, The Coca Cola Company, Ajinomoto General Foods Inc., Ting Hsin International Group, Uni-President Enterprises Corporation, Nestlé, Dunkin' Brands, Ferolito Vultaggio & Sons, Keurig Dr Pepper, Hangzhou Wahaha Group, Lotte Chilsung, Monster Beverage, Acqua Minerale San Benedetto, Kirin Holdings Company, Unilever, Arizona Beverage Company, Suntory, etc.

Key Questions Answered in This Report:

1. What was the global ready to drink tea and coffee market size in 2019?

The global ready to drink tea and coffee market was worth around US$ 106 Billion in 2019.

2. What will be the global ready to drink tea and coffee market outlook during the forecast period (2020-2025)?

According to the estimates by IMARC Group, the global ready to drink tea and coffee market will exhibit moderate growth during the next five years.

3. What are the global ready to drink tea and coffee market drivers?

The increasing working population with hectic work schedules is currently driving the demand for RTD beverages. Additionally, the growing popularity of café culture and quick-service restaurants represents one of the key drivers for the global ready to drink tea and coffee market.

4. What are the major trends in the global ready to drink tea and coffee market?

The introduction of authentic tea and coffee flavors including organic ingredients with numerous health benefits represents one of the key trends in the ready to drink tea and coffee market.

5. What is the impact of COVID-19 on the global ready to drink tea and coffee market?

Sudden outbreak of the COVID-19 pandemic has led to the implementation of stringent lockdown regulations across several nations resulting in temporary closure of cafes, quick-service restaurants, food joints, etc., thereby hampering the overall demand for RTD tea and coffee.

6. What is the global ready to drink tea and coffee market breakup by product?

On the basis of the product, the market has been bifurcated into ready to drink tea and coffee. Amongst these, ready to drink tea, including black tea, fruit and herbal -based tea, oolong tea, and green tea, hold the majority of the total market share.

United States Hot Sauce Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026

United States Gluten-Free Oats Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026

Europe Hot Sauce Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026

Europe Gluten-Free Oats Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026

10% Free customization

Purchase Options

Single User License $ 1999
Five User License $ 2999
Corporate License $ 3999

REACH OUT TO US

Call us on

( US: +1-631-791-1145 )
( UK: +44-702-409-7331 )
( India: +91-120-433-0800 )

Drop us an email at

sales@imarcgroup.com