Global Ready-to-Drink Tea & Coffee Market Size, Share, Growth Analysis, By Product(RTD Tea, RTD Coffee), By Distribution Channels(Supermarkets, Convenience Store) - Industry Forecast 2024-2031

Global ready-to-drink tea & coffee market size was valued at USD 105.37 billion in 2022 and is poised to grow from USD 112.11 billion in 2023 to USD 184.16 billion by 2031, at a CAGR of 6.4% during the forecast period (2024-2031).

Tea and coffee labeled as "ready to drink" (RTD) are pre-packaged beverages designed for immediate consumption upon purchase. Common varieties of RTD tea include fruit, black, green, herbal, matcha, oolong, and iced teas. Similarly, RTD coffee options encompass yerba mate, guarana, acai berry, ginseng, taurine, and iced coffees. These products are crafted using a variety of additives, extracts, preservatives, natural and artificial sweeteners, flavors, acidulants, and nutraceuticals. They are often fortified with essential vitamins and minerals, serving as potent sources of antioxidants. For example, RTD green tea may contain added catechin, while black coffee may provide caffeine, vitamin B, potassium, magnesium, and polyphenols. Packaging options for RTD tea and coffee include aseptic cartons, glass bottles, PET bottles, cans, and PET bottles. These products offer numerous health benefits and enhanced convenience for consumers compared to traditional beverage mixes, powders, or DIY brewing methods. A key driver of market expansion is the increasing demand for energy drinks with coffee and tea-like flavors. Furthermore, consumers are drawn to RTD tea and coffee due to their antioxidant content and other beneficial ingredients, especially amidst rising concerns about lifestyle-related diseases. The positioning of these products as leisure beverages has also contributed to increased consumption among millennials.

Top-down and bottom-up approaches were used to estimate and validate the size of the global ready-to-drink tea & coffee market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Ready-to-Drink Tea & Coffee Market Segmental Analysis

Global ready-to-drink tea & coffee market is segmented based on product, packaging, distribution channels and region. By product, the market is segmented into RTD tea, RTD coffee. By packaging, the market is segmented into canned, glass bottle, pet bottle, others. By distribution channels, the market is segmented into supermarkets, convenience stores, food service, and online. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Ready-to-Drink Tea & Coffee Market

Tea is renowned for its health-promoting properties, notably its antioxidant content and its potential to mitigate the risk of chronic diseases. With a growing emphasis on health consciousness among consumers, there's a notable shift towards tea and other nutritious beverages, including ready-to-drink tea and coffee options.

Restraints in the Global Ready-to-Drink Tea & Coffee Market

The market encounters fierce competition from alternative beverages like energy drinks, sports drinks, and bottled water. Some consumers perceive these alternatives as healthier choices, prompting a shift away from ready-to-drink tea and coffee.

Market Trends of the Global Ready-to-Drink Tea & Coffee Market

The global ready-to-drink tea and coffee market is witnessing significant investment in research and development by manufacturers aiming to distinguish their products and gain market traction. Consumers seek more than just a caffeine boost from their tea and coffee beverages. Consequently, manufacturers are focusing on developing products that offer additional functional benefits, including energy enhancement, relaxation and stress alleviation, and even weight management properties.