Ready To Drink Tea & Coffee (RTD) Market Size, Share, Trends, Growth and Forecast 2028

Ready To Drink Tea & Coffee (RTD) Market: Overview

The Ready to Drink Tea & Coffee Market accounted for USD 10.5 Billion in 2020 and is expected to reach more than USD 68.9 Billion by 2028, growing at a CAGR of 17% from 2021 to 2028.

global RTD tea and RTD coffee market are products that fall under the soft drinks category, but it has differences in their function that has health benefits. Today, the market for RTD tea and RTD coffee is rapidly growing. Many types of RTD tea and coffee products have come up in the market to serve a huge base of consumers worldwide. For the expansion of these products, the young population and people who are health conscious are the main targeted categories. With this, Different nutraceutical ingredients are used to increase the functionality of such products.

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COVID-19 Impact Analysis

RTD Tea and Coffee Market are reaching on its pre-COVID levels and a growth rate is expected over the forecast period with a V-shaped recovery in developing nations. The issue of Covid-19, a global public health emergency that has adversely affected almost industries, and so, long-term effects are projected to impact the growth of the industry over the duration of the forecast period.

Ready To Drink Tea & Coffee (RTD) Market: Growth Factors

Spread in consumer awareness of the health problems of carbonated drinks is turning a shift towards RTD tea and RTD coffee. Another major driver of these tea and coffee products is the behavior of health-conscious consumers whose preferences are RTD tea and coffee with antioxidant properties. Customization of healthy products for children and women is the strategy of players in the market to expand the business. Positioning the Ready to Drink tea and RTD coffee market as recreational products has proven beneficial for engaging the younger population.

The rising income of different groups in emerging economies is also a major factor that is increasing the growth rate of the RTD tea and coffee market. Climate is not predictable and the increase of cost in agricultural inputs had caused the increase in raw materials cost of tea and coffee which makes the product more expensive.

Global Ready To Drink Tea & Coffee (RTD) Market Report Scope:

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Packaging Segment Analysis Preview

The supplements segment held a share of over17%% in 2020. PET Bottle packaging has the ability to convert into different shapes and the availability of various colors has encouraged a large number of manufacturers to adopt PET Bottle packing. Manufacturers are also going for canned packaging because it helps in gaining the brand image of the product in the consumer’s mind.

The Glass bottle packaging is the type mainly used in premium RTD tea and coffee as the packaging helps in representing the premium product image for these products. Many brands use glass bottles in packaging as it positions the product in the premium category and is also considered an important factor for brand identity.

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Distribution Channel Segment Analysis Preview

Distribution Channel is projected to grow at a CAGR of around 17% from 2021 to 2028. Distribution channels play a vital role in the value chain of the market. Usually, companies operating in this market are involved in mass production. Demand for the products generally remains high, because of which easy availability of the product becomes a major differentiating factor for manufacturers.

Manufacturers have made strong alliances with retailers for the sale of RTD tea and coffee. With this Retailers are gaining huge importance due to the increasing demand for such drinks. Retailers who have ready-to-drink tea and coffee in their product range are the presence of big supermarket chains and are changing the retail environment across the world boosting sales of RTD tea and coffee through these supermarket distribution channels.

Ready To Drink Tea & Coffee (RTD) Market: Regional Analysis Preview

Asia-Pacific accounted for a share of over 17%% in 2020. Asia-Pacific is expected to have its dominance in this market. The demand for this product in this region is derived from countries such as Japan and China, which have a high number of tea and coffee plantations. The European market is driven by countries such as the U.K, Italy, and Germany due to the rise in the health awareness population in these countries. Huge demand for instant drinks is expected to boost demand for these products as well over the forecast period. The manufacturers are in a race to come up with new flavors to capture a big market share.

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Ready To Drink Tea & Coffee (RTD) Market: Key Players & Competitive Landscape

To expand the trend of RTD tea and RTD coffee market, many leading companies are focusing on manufacturing and development. Rapidly increasing demand is forcing global soft drinks companies to add ready-to-drink tea and coffee to their product line. These include Suntory Holdings Ltd, PepsiCo Inc., Nestle S.A., Sapporo Beverage Co. Ltd., Coca-Cola Company, Starbucks Corporation, Monster Beverage Company, Ting Hsin International Group, Uni-President Enterprises, and Danone among others.

The Ready to Drink Tea & Coffee Market is segmented as follows:

By Additives

•  Flavors
• Artificial sweeteners
• Acidulants,
• Nutraceuticals,
• Preservatives
• Others

By Type

• Ready to drink tea
• Ready to drink coffee

By Packaging

• Glass bottle
• Canned
• Pet bottle
• Others

By Price

• Premium
• Regular
• Popular priced
• Fountain
• Super premium

By Distribution Channel

• Supermarket/Hypermarket

• Convenience Store
• Food Service
• Others

By Region

• North America

  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa