The global ready to drink (RTD) tea and coffee market is estimated to garner a sizeable revenue by growing at a notable CAGR over the forecast period, i.e., 2021 – 2029. The growth of the market can be ascribed to the growing awareness regarding the health hazards of carbonated drinks and the changing dietary preferences of individuals worldwide. The soft drink consumption in the U.S. has declined by more than 20% owing to the rising consciousness of people to consume health beneficial products. Furthermore, increasing disposable income in developed economies is another factor estimated to fuel the market growth. Along with these, creative branding and marketing strategies of food and beverage companies are also evaluated to offer opportunities for the progress of the market.
The market is segmented by packaging into glass bottle, PET bottle, canned and others, out of which, the PET bottle segment is anticipated to hold the largest share in the global RTD tea and coffee market by the end of 2029 on account of the low production cost and ease of handling of these bottles. As PET containers are recyclable, these tend to be in high demand amongst the beverage manufacturers in the beverage packaging industry. On the other hand, the glass bottle segment is also expected to grow with a noteworthy CAGR as a result of its reusability and for having a high recycling rate. Additionally, on the basis of distribution channel, the market is segmented into off-trade and on-trade. The off-trade segment is further divided into supermarkets, independent retailers, convenience stores, and others, out of which, the supermarkets section grabs the largest revenue in the market, primarily on account of the rise in the number of supermarket chains. In 2019, about 40,000 supermarket stores existed in United States, up from approximately 35,000 in 2010.
Regionally, the global ready to drink (RTD) tea and coffee market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. The market in the Asia Pacific is estimated to witness significant CAGR over the forecast period on the back of growing demand for RTD products as a result of rising health awareness of the people and the booming landscape of retail food chains in the region, namely in countries such as Japan, India and China. Another crucial factor boosting industry growth is the large number of coffee and tea plantations, and the growing production of tea in several countries in the region. During the financial year 2019-2020, the production of tea in India crossed 1300 M.Kgs. Furthermore, the market in North America is estimated to hold a significant revenue in 2021 accounting to the presence of leading market players of the beverage industry, especially in nations, such as, the U.S.A and Canada.
The global RTD tea and coffee market is further classified on the basis of region as follows:
Our in-depth analysis of the global ready to drink (RTD) tea and coffee market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Growing concern for health amongst individuals worldwide and the changing dietary preferences are some of the major factors anticipated to drive the growth of the market.
The market is anticipated to attain a notable CAGR over the forecast period, i.e., 2021-2029.
Frequently changing prices of the raw materials used to manufacture RTD tea and coffee, and the higher production cost of RTD drinks than ground coffee and tea leaves are estimated to hamper the market growth.
Asia Pacific region has more business opportunities for growth of RTD tea and coffee market owing to the high number of tea and coffee plantations in the region.
The major players in the market are Nestle S.A., The Coca Cola Company, PepsiCo Inc., Suntory Beverage & Food Limited, Danone S.A. and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by product, packaging, distribution channel, additives and by region.
The supermarkets segment is anticipated to hold the largest market size and is estimated to grow at a steady CAGR over the forecast period and display significant growth opportunities.
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