Ready to Drink Tea and Coffee Market Value Chain Analysis Report by 2030

Ready to Drink Tea and Coffee Industry Overview

The global ready to drink tea and coffee market size is expected to reach USD 167.88 billion by 2030, registering a CAGR of 6.2% during the forecast period, according to a new report by Grand View Research, Inc. Acceptance of ready-to-drink tea and coffee products as healthier substitutes to carbonated soft drinks and instant energy provided by them are factors expected to drive the growth of the market.

The introduction of new flavors in these product categories is projected to give a tremendous boost to the overall market growth. For instance, Ocean Spray Cranberries, Inc., an agricultural cooperative, launched Ocean Spray Brew in January 2020. The drink contains real fruit juice and cold brew coffee and is available in two flavors: Cranberry Lemonade and Cranberry Blueberry.

Ready to Drink Tea and Coffee Market Segmentation

Grand View Research has segmented the ready to drink tea and coffee market based on product, packaging, distribution channel, and region:

Based on the Product Insights, the market is segmented into RTD Tea and RTD Coffee

• The RTD tea segment led the market and accounted for a 63.8% share of the global revenue in 2021. Some of the commonly consumed RTD tea variants are black, green, fruit, herbal, matcha, oolong, and iced.
• Owing to the increasing working population and hectic schedules of professionals, product demand has escalated significantly. The growing preference for carbonated RTD tea among consumers is driving the segment growth.
• The RTD coffee segment is anticipated to expand at the fastest CAGR of 6.4% from 2022 to 2030. Few of the commonly found RTD coffee variants in the market are yerba mate, guarana, acai berry, ginseng, taurine, and iced.
• Coffee is a well-accepted beverage and is considered a healthy replacement for carbonated soft drinks, hence, the demand for the product is likely to grow exponentially.

Based on the Packaging Insights, the market is segmented into Canned, Glass Bottle, PET Bottle, and Others

• The PET bottles segment led the market and accounted for a 33.9% share of the global industry revenue in 2021. The ease of handling coupled with low manufacturing cost is boosting the demand for this type of packaging.
• The demand for PET bottles for packaging RTD tea and coffee is rising due to their recyclability and reusability. PET bottles are easily recycled from many types of secondary products, including pillow stuffing, carpet fibers, tote bags, and strapping materials.
• The lightweight of plastic bottles reduces the cost of transporting materials to recycling centers. Thus, multiple benefits of PET bottles over other packaging types can be attributed to the segment’s overall growth in the market.
• Canned packaging was the second-largest segment in 2021 and is projected to grow substantially over the forecast period. The growth of the segment is attributed to its benefits such as flavor preservation and enhanced product shelf-life.

Based on the Distribution Channel Insights, the market is segmented into Supermarkets/Hypermarkets, Convenience Stores, Food Service, and Online

• Supermarkets/hypermarkets made the largest contribution to the global market in terms of revenue, accounting for over 33.7% in 2021. Changing retail landscape and the growing number of supermarket chains, especially in densely-populated countries such as India, are fueling the sales of RTD tea and coffee through this channel.
• The progression of the foodservice industry as a distribution channel has drawn the attention of a large number of manufacturers. The growth of café culture and the grab-and-go concept around the globe is projected to drive the demand for RTD tea and coffee products through this channel.
• Convenience stores are thriving around the globe owing to rising urbanization and easy accessibility demanded by consumers.
• The online distribution segment is set to expand at the fastest CAGR of 6.7% from 2022 to 2030. Rising internet penetration and targeted consumer marketing by companies are factors likely to fuel the growth of this segment.

Ready to Drink Tea and Coffee Regional Outlook

• North America
• Europe
• Asia Pacific
• South & Central America
• Middle East & Africa (MEA)

Key Companies Profile & Market Share Insights

The market includes both international and domestic participants. Key market players focus on strategies such as innovation and new product launches in retail to enhance their offering in the market.

Some prominent players in the global Ready to Drink Tea and Coffee market include:

• Suntory Holdings Limited
• Nestlé
• The Coca Cola Company
• Unilever
• Asahi Group Holdings, Ltd.
• PepsiCo
• Starbucks Coffee Company
• Monster Energy Company
• Danone
• AriZona Beverages USA

Order a free sample PDF of the Ready to Drink Tea and Coffee Market Intelligence Study, published by Grand View Research.