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Market Overview:
The global ready to drink tea and coffee market reached US$ 114 Billion in 2020. Looking forward, IMARC Group expects the market to grow at a CAGR of 7.5% during 2021-2026. Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic on different end use sectors. These insights are included in the report as a major market contributor.
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.
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.
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.
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.
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.
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 and regional level from 2021-2026. Our report has categorized the market based on product, additives, packaging, price segment and distribution channel.
Breakup by Product:
Breakup by Additives:
Breakup by Packaging:
Breakup by Price Segment:
Breakup by Distribution Channel:
Breakup by Region:
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.
Report Coverage:
| Report Features | Details |
|---|---|
| Base Year of the Analysis | 2020 |
| Historical Period | 2015-2020 |
| Forecast Period | 2021-2026 |
| Units | US$ Billion |
| Segment Coverage | Product, Additives, Packaging, Price Segment, Distribution Channel, Region |
| Region Covered | Asia Pacific, Europe, North America, Latin America, Middle East and Africa |
| Companies Covered | 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 and Suntory |
| Customization Scope | 10% Free Customization |
| Report Price and Purchase Option | Single User License: US$ 2299 Five User License: US$ 3399 Corporate License: US$ 4499 |
| Post-Sale Analyst Support | 10-12 Weeks |
| Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
The global ready to drink tea and coffee market was valued at US$ 114 Billion in 2020.
We expect the global ready to drink tea and coffee market to exhibit a CAGR of 7.5% during 2021-2026.
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 also represents one of the factors catalyzing the global ready to drink tea and coffee market.
Sudden outbreak of the COVID-19 pandemic had 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.
Based on the product, the global ready to drink tea and coffee market can be bifurcated into ready to drink tea and ready to drink coffee. Among these, ready to drink tea, including black tea, fruit and herbal -based tea, oolong tea, and green tea, holds the majority of the total market share.
Based on the packaging, the global ready to drink tea and coffee market has been categorized into glass bottle, canned, PET bottle, aseptic, and others, where PET bottle exhibits a clear dominance in the market.
Based on the distribution channel, the global ready to drink tea and coffee market can be divided into off-trade and on-trade. Currently, off-trade distribution channel currently accounts for the majority of the total market share.
On a regional level, the market has been classified into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America, where Europe currently dominates the global market.
Some of the major players in the global ready to drink tea and coffee market include 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.
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