Global Ready to Drink (RTD) Tea and Coffee Market by Packaging Type (PET Bottle, Canned), by Product (RTD Tea, RTD Coffee) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Industry Insights

Global ready-to-drink (RTD) coffee and tea market was valued at USD 75.25 Billion in 2016. It is expected to grow at a 5.6% CAGR between 2017 and 2024. Over the forecast period, RTD products will be in high demand due to the rising demand for energy drinks with a familiar flavor as everyday beverages.

RTD Tea and Coffee are being more popular due to the changing lifestyles that encourage eating on the move and the growing preference for smaller, healthier snacks. Ready-to-drink teas and coffees are in high demand due to their antioxidants and other essential components. Global trends are shifting towards personalized nutrition.

The U.S. RTD tea segment accounted for 76.2% revenue share in 2016. Due to rising demand for concentrates and iced tea, this segment will gain momentum. Industry demand is expected to rise further with the introduction of new flavors within the product categories.

The rapid socio-economic growth that has occurred over the past decades is leading to a rise in chronic diseases like heart disease, cancer, diabetes. Consumers are more inclined to drink RTD tea and coffee due to the growing awareness of chronic diseases among the older population.

Market growth will be impeded by fluctuating raw material prices due to changes in climatic conditions around the globe. The key raw materials used in the production of ready-to-drink tea and coffee are coffee beans, tea leaves, acidulants, sweeteners, and coffee beans. The two biggest elements of the cost structure for ready-to-drink tea and coffee manufacturing are raw materials and bottling.

The rising healthcare costs are making people more aware of the growing cost of proper medical facilities. People have begun to adopt self-nutrition and preventive health care habits due to the high cost of healthcare. This can lead to a rise in demand for RTD coffee and tea, which have many health benefits.

Product Insights

RTD tea and coffee can now be considered healthy alternatives to carbonated beverages. This is why the market for these products will grow quickly. RTD tea accounted for the majority of market revenue share in 2016, and was the fastest-growing segment. This is due to the availability best tea flavors that have added nutritional benefits.

RTD tea is seeing a rise in popularity among consumers who prefer carbonated RTD tea. The global decline in soda consumption is due to health risks. This is an opportunity for product manufacturers to profit from the market and increase their share of the global marketplace.

Over the forecast period, RTD coffee is expected to experience significant growth. These products will be in high demand due to the introduction of new flavors and increased demand for caffeine-containing drinks. It is a cold-brewed, sweetened coffee with high levels of caffeine.

RTD coffee will continue to grow due to rising demand for cold-brewed coffee concentrates. Protean coffee bean prices were a problem for many years. El Nino, which caused many problems in coffee plantations, is now under control, which is a significant boost for the industry.

Packaging Type Insights

PET Bottle was a dominant segment of the industry in 2016, accounting for 31.7%. PET Bottles are popular because of their low manufacturing costs and ease of handling. This type of packaging is popular because it can be molded in many shapes and comes in a variety of colors.

PET bottle RTD coffee and tea are in high demand due to their recyclability. PET bottles can be easily recycled into many secondary products, such as carpet fibers and pillow stuffing. Plastic bottles are lightweight, which reduces the cost of shipping materials to recycling centers.

Canned packaging accounted for 27.9% revenue share in 2016, making it the second-largest segment. Its ability to preserve flavor and extend product shelf life can explain this. Cans are also preferred by manufacturers because they help to reinforce the brand image of their product in the consumers' minds.

The glass bottle segment is projected to experience the highest growth rate due to its recyclability, and reusability. These packaging types are used primarily for premium RTD coffee and tea. They also help in communicating the product's image. Glass bottles are used by many major brands as packaging. It improves product image and forms part of the brand's identity.

Price Insights

In 2016, the premium price segment accounted for 36.9% revenue share. As manufacturers look to create new flavors and capitalize on premium products that include these flavors, the demand for premium beverages is expected to increase. To give the drink a premium feel, natural ingredients are included in the drinks.

Regular price was the second largest segment, accounting for 36.2% in total revenue share in 2016. Regular price products allow the company to reach a wide range of customers. This price segment has fewer product types and flavors.

RTD teas and coffee demand is moderate. It is expected to increase slowly over the forecast period. This price segment is influenced by the rise in foodservice distribution channels. The pricing of combinations of different products is known as the fountain price segment.

Manufacturers are exploring this price segment because it helps to build their brand and creates the opportunity to return the purchase. Manufacturers can also use the price segment to better understand their customers' tastes and preferences.

Distribution Channel Insights

Supermarkets/hypermarkets dominated the overall industry in terms of revenue in 2016, accounting for 35.4% industry share. A large number of supermarket chains, as well as a changing retail landscape around the world, are poised to increase sales of ready-to-drink tea and coffee through supermarket distribution channels.

Numerous manufacturers have noticed the evolution of food service as an important distribution channel. Over the forecast period, the rising popularity of local beverages is expected to increase the demand for these drinks. These products will be more popular due to the increasing number of RTD teas and coffees.

The foodservice distribution channel is a network that includes distributors who supply products to cafeterias and industrial caterers as well as hospitals and nursing homes. This channel will be driven by the growth of cafe culture all over the globe.

Convenience stores in Japan and China are major distribution channels of RTD tea and coffee. Japan is the leader in setting up convenience stores. Major manufacturers have chosen this distribution channel because of the large number of convenience stores.

Regional Insights

Asia Pacific was the dominant region in 2016, accounting 41% of total revenue share. This region has a lot of coffee and tea plantations, and Japan and China are driving the demand. In countries like India, Thailand, Indonesia and Indonesia, the market will experience healthy growth over the next few years.

Due to rising demand, the U.S. and Canada are driving the growth of the RTD tea and coffee industries in North America. Due to increasing awareness of health in the United States, the overall industry is expanding. This country's manufacturers are racing to create new flavors in order to gain more market share.

Due to increasing health awareness, countries like the U.K. and Germany are driving Europe's market. Over the forecast period, RTD tea and coffee will see a rise in demand due to high consumption of instant energy drinks. These products are gaining popularity due to their health benefits.

Over the forecast period, the Middle East & Africa will grow at the fastest pace. The region's high tea consumption and changing retail landscape will lead to an increase in ready-to-drink products consumption. This region's flourishing foodservice sector can also encourage RTD tea and coffee demand.

Market Share Insights on Ready-to-Drink (RTD) teas and coffees

The distribution channels are an important part of the market's value chain. Most companies in the market are involved with mass production. The product is in high demand, which means that manufacturers have easy access to it.

For the sale of their products, manufacturers have formed alliances with retailers. Due to growing demand for soft beverages, retailers are becoming more important. Walmart Stores Inc., Costco Wholesale Corporation, Carrefour S.A. and Tesco PLC are some of the major retailers that have RTD tea or coffee in their product range.

This market is extremely competitive and will see new product development as one the most popular strategies. Suntory Holdings Ltd., Nestle S.A., The Coca-Cola Company and Tsing Hsin Inter Group are key players in this market.

Up Market Research published a new report titled “Ready to Drink (RTD) Tea and Coffee Market research report which is segmented by Packaging Type (PET Bottle, Canned), by Product (RTD Tea, RTD Coffee), By Players/Companies Suntory Holdings Ltd; Nestl© SA; The Coca-Cola Company; Tsing Hsin International Group; PepsiCo Inc; Starbucks Corporation; Monster Beverage Company; Uni-President Enterprises; and Danone”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Ready to Drink (RTD) Tea and Coffee Market Report Segments:

The market is segmented by Packaging Type (PET Bottle, Canned), by Product (RTD Tea, RTD Coffee).

Ready to Drink (RTD) Tea and Coffee Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Ready to Drink (RTD) Tea and Coffee Market

Overview of the regional outlook of the Ready to Drink (RTD) Tea and Coffee Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Ready to Drink (RTD) Tea and Coffee Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Ready to Drink (RTD) Tea and Coffee Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. PET Bottle

                2. Canned

                1. RTD Tea

                2. RTD Coffee

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Ready to Drink (RTD) Tea and Coffee Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Ready to Drink (RTD) Tea and Coffee Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.