Ready to Drink Tea and Coffee Market Report By Product Category, Packaging Type, Distribution Channel, Countries and Company Analysis 2024-2032

Global Ready-to-Drink Tea and Coffee Market Size

Global Ready to Drink Tea & Coffee market is expected to touch US$ 197.40 billion by 2032 from the current of US$ 107. 18 billion in 2023 with a compound annual growth rate of 7.02 percent between 2024 and 2032. Some of the main factors motivating the market growth include the development of the new and unique flavors, growth of the customers' income, and installation of RTD tea and coffee vending machines at different places and stations.

Ready-to-Drink Tea and Coffee Outlooks

RTD tea and coffee beverages are those that are prepared in advance and meant for drinking on the go. These drinks are preferably bottled, canned or put in cartons hence portable and provide the consumer with-energy boost through the caffeine content. RTD tea can include black, green, herbal, flavored teas while on the other hand RTD coffee can include cold brew, iced coffee and flavored/sweetened coffee.

In the world market, RTD tea and coffee have been consumed more due to alteration of the lifestyle, urbanization and convenience factor. Concerning the region, Asia-Pacific area including the countries like Japan and China are major consumers of RTD tea while the North American and the European countries have exhibited a remarkable growth in the consumption of RTD coffee. They also increase the consumption of RTD teas with antioxidants and RTD coffees with specific features like low sugar and plant-based diets.

Driving Forces for Ready-to-Drink Tea and Coffee Industry

Increasingly busy lifestyles and a preference for convenience

High and steadily rising busy working schedules and the convenience factor fuel RTD beverages. The population of consumers today requires foods that can be consumed with little efforts, hence the convenience foods. This is satisfied by the RTD tea and coffee products because they are ready to consume products that do not require preparation through brewing. This has a benefit of addressing everyone who has little or no time to spare due to work, school, or business or even travelers, they get to enjoy their coffee or tea deliveries at their own convenient time without having to spend a lot of time waiting. Bear in mind that with more changes in the size and density of the population and time being regarded as a scarce commodity, Ready To Drink beverages are going to find their way on to the consumers' lips buoyed as they are by the different conveniences that they come packed in which include bottles, cans and cartons which are easy to find in supermarkets, convenience stores, and online shops.

Growing consumer awareness about health benefits

A growing concern with health consciousness among the consumers is the key factor triggering the enhanced popularity for better quality Ready-to-Drink (RTD) beverage like tea and coffee. Major focus is given to the antioxidants and natural constituents present in these drinks, which stay essential to the wellbeing of the people. As such, there is a general increase in the demand of low sugar/functional RTD beverages whereby formulators have included vitamins, probiotics and even herbal extracts. These additional components contribute to the products' improvements in the nutritional value while providing a variety of products that can address one's health-specific requirements and demands. Due to this reasoning, manufactures are coming up with formulations that enhance health without compromising on the convenience making these better RTD beverages a great hit in the drink market.

RTD beverages benefit from extensive distribution networks

RTD beverages are widely consumed because of the considerable access that is available through the distribution channels that include supermarkets, convenience stores, online platforms, and vending machines. These variations affect distribution in a positive manner and make Wheel's products easily accessible by a broader population. The supermarkets and convenience stores help the daily shoppers to easily locate the ready to drink products. At the same time, internet sites and electronic shops provide comfort of home delivery and address technical consumers. Also, vending machine strategically located in office complexes, learning institutions, and areas with many commuters affords convenience to frequently on the move people with ready RTD beverages. Expanding the new distribution channels makes the market penetration higher and emphasizes on increasing the consumption of RTD beverages among different groups of the population. It makes certain that consumers can get their preferred drinks at any time they want and at any place they want.

Asia Pacific Ready-to-Drink Tea and Coffee Market

The Asia-Pacific RTD tea and coffee market is also expanding because of people's needs and demands, and the increasing innovations in these finished products due to the advancement of urban living. Various nations that are considered critical to this market include Japan, China, India, and South Korea which are increasingly shifting their dietary habits towards taking beverages while on the move.

Asia Pacific ready-to-drink tea and coffee market is growing because of the following factors. These are increasing disposable income per capita, enhanced peoples' perceived health implication of tea and coffee, and popularization of western beverages. It is relevant that RTD products are popular among the target groups consisting of the active urban consumers who seek easy and compact beverages. Moreover, the market is pulled forward by the emergence of new tastes, new packaging and regional specific productions. However due to the increase in urbanization and changing customers' preference the Asia Pacific RTD tea and coffee market will expand even more. A sound distribution channel backed by effective marketing strategies from both the international as well as domestic players also helps this growth.

Ready-to-Drink Tea and Coffee Company Analysis

Nestle SA, The Coca-Cola Company, PepsiCo, Starbucks Corporation, Monster Beverage, Danone S.A., Asahi Group Holding, and Unilever Plc are the top ready-to-drink tea and coffee companies.

Ready to Drink Tea and Coffee Company News

In June 2023, the Rolling Stones and Keurig Dr. Pepper partnered to release a "Start Me Up" iced coffee package. It includes a "Start Me Up" K-Cup pod coffee blend co-created by the band, a tumbler, a specially designed K-Iced maker, and a Spotify playlist curated by the band.

In February 2023, Starbucks introduced coffee laced with extra virgin olive oil. Five variations include a cold brew, a cortado, and an oat milk latte.

In December 2022, MatchaKo introduced the first RTD premium matcha beverage certified as organic, vegan, and non-GMO.

In April 2022, to improve its product line and fill in size gaps, Red Diamond Coffee & Tea added an 11-oz bottle to its assortment of RTD teas.

In July 2021, the canned coffee company Bottleshot Cold Brew announced its entry into the U.K. market by obtaining online sales listings on WHSmith Travel shops and Ocado.

Product Category- Market breakup in 2 viewpoints:

1. Tea

2. Coffee

Packaging Type- Market breakup in 4 viewpoints:

1. Glass Bottle

2. PET Bottle

3. Canned

4. Others

Distribution Channel- Market breakup in 3 viewpoints:

1. Supermarkets/Hypermarkets

2. Convenience Stores

3. Online

4. Others

Country: Ready to Drink Tea-Market breakup of 11 Countries:

1. China

2. India

3. Turkey

4. Japan

5. United Kingdom

6. Germany

7. United States

8. Indonesia

9. Egypt

10. Australia

11. Others

Country: Ready to Drink Coffee-Market breakup of 11 Countries:

1. United States

2. Brazil

3. France

4. Germany

5. Spain

6. Canada

7. Netherlands

8. Sweden

9. Finland

10. Denmark

11. Others

All the key players have been covered from 3 Viewpoints:

• Business Overview
• Recent Development & Strategies
• Revenue Analysis

Key Players Analysis:

1. Nestle SA

2. The Coca Cola Company

3. PepsiCo

4. Starbucks Corporation

5. Monster Beverage

6. Danone S.A.

7. Ashahi Group Holding

8. Unilever Plc.