Global Ready to Drink (RTD) Tea and Coffee Market Highlights 2020 – 2029

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.

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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. 

Global Ready to Drink (RTD) Tea and Coffee Market Regional Synopsis

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:

• North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
• Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
• Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
• Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis
• Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis

Market Segmentation

Our in-depth analysis of the global ready to drink (RTD) tea and coffee market includes the following segments:

By Product Type

• Tea

• Coffee

By Packaging

• Glass Bottle
• PET Bottle
• Canned
• Others

By Distribution Channel

• Off-Trade
  • Supermarkets
  • Independent Retailers
  • Convenience Stores
  • Others
• On-Trade
  • Vending
  • Food Service

By Additives

• Artificial Flavors
• Preservatives
• Others

Growth Drivers

• Rising Health Consciousness among Consumers
• Changing Dietary Preferences
• Growth of Beverage and Food Industry

Challenges

• Higher Production Cost of RTD beverages than Tea Leaves and Ground Coffee
• Fluctuating Cost of Raw Materials

Top Featured Companies Dominating the Market

• Nestle S.A.
  • Company Overview
  • Business Strategy
  • Key Product Offerings
  • Financial Performance
  • Key Performance Indicators
  • Risk Analysis
  • Recent Development
  • Regional Presence
  • SWOT Analysis

• The Coca Cola Company
• PepsiCo, Inc.
• AriZona Beverages USA LLC
• Suntory Beverage & Food Limited
• Uni-President Enterprises Corp.
• Asahi Group Holdings, Ltd.
• Sapporo Holdings Ltd.
• Danone S.A.
• Starbucks Corporation