Ready-to-drink (RTD) Tea Market

The global ready-to-drink tea market size was valued at $29.66 billion in 2019, and is anticipated to reach $38.96 billion by 2027, with a CAGR of 5.5% during the forecast period from 2021 to 2027. The black tea segment was the highest contributor to the market, and is estimated to reach $17.09 billion by 2027, registering a CAGR of 4.9% during the forecast period. U.S. is one of the prominent countriesin the market that accounted for a sizeable share of the total market in 2019. 

RTD tea is a packaged tea in its prepared form that is ready for consumption. It is made available in various flavors by key players in the market. Tea is the most consumed nonalcoholic beverageafter the water. 

Increase in awareness about the health benefits associated with RTD tea is encouraging consumers to focus on adopting a healthy lifestyle, which is a key factor that contributes toward the growth of the global ready-to-drink tea market. Moreover, RTD aids in weight loss, reduces headache& body pain, and decreases in cholesterol levels &the risk of chances of heart attacks. These associated benefits coupled with rise in awareness for adoption of healthy lifestyle is expected to fuel the growth of the global market in the upcoming years. In addition, rise in disposable income; availability of ready-to-drink tea with convenient & attractive packaging; and increase in number of cafés, online & offline retail stores, and food outlets are the other factors anticipated to foster the ready-to-drink tea market growth, globally.

However, high price of ready-to-drinkgreen tea as compared to RTD black tea products and increase in consumption of ready-to-drinkcoffee are anticipated to restrain the growth of the global ready-to-drink tea market. On the contrary, extension of product portfolio and introduction of innovative flavors are anticipated to offer remunerative opportunities for the expansion of the global RTD tea market during the forecast period.

Premiumbrands have started to develop accurate social media strategies to engage tech-savvy young consumers in social media activities that seek greater value for money, more personalization, and integrated digital access. A significant increase has been witnessed in the number of netizens along with rise in internet penetration. Most key players in the ready-to-drink Tea market strategize on promoting their products on various social media platforms. Thus, through the social media marketing strategy, the RTD tea market is expected to sight remunerative growth opportunity during the forecast period.

Moreover, the outbreak of the novel coronavirus has significantly affected the growth of the ready-to-drink tea market. The decline in growth in the ready-to-drink tea market can be attributed to disruption in the supply chain. Moreover, halt in the production of tea and its processing due to lockdown and social distancing being practiced all around the world have adversely affected the growth of this industry. The ready-to-drink tea market on the other hand has not experienced a steep down trend, in terms of demand, as it remains somewhat similar prior to the virus outbreak, being a daily consumable item. This disparity in the availability of product and its demand is expected foster quick recovery for the RTD tea market once the pandemic ends.

According to the ready-to-drink tea market analysis, the market is segmented into type, category, distribution channel, and region. By type, the market is categorized into green tea, black tea, and others. Depending on category, it is bifurcated into organic and conventional. On the basis of distribution channel, it is segregated into supermarkets/hypermarkets, specialty stores, online stores, and others. Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, the UK, Spain, the Italy, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Indonesia, Pakistan, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, United Arab Emirates, Nigeria, Turkey, South Africa, and rest of LAMEA).

On the basis of type, the black tea segment accounted for the maximum ready-to-drink tea market share in in 2019, and is anticipated to remain dominant throughout the ready-to-drink tea market forecast period, owing to rise in number of tea drinkers across the globe. Furthermore, high concentration of antioxidants and polyphenols makes black tea popular among health-conscious people, which propels the growth of the black tea segment. Moreover, it helps in curing headache and cancer as well as regulating blood pressure, which boosts its demand, globally, thereby driving the growth of the market.

On the basis of category, the organic tea segment accounted for the maximum share in the global market in 2019. This is attributed to the fact that the popularity of RTD tea has been witnessed to increase in the conventional category, owing to rise instandardof livingand increase in know-how about the health benefits associated with RTD tea. Consumers in developing economies are conscious about the price they pay while making purchase decisions, and hence rise in awareness about the health benefits of ready-to-drink tea leads to increased its consumption in the developing region such as Asia-Pacific and LAMEA.

On the basis of distribution channel, the supermarkets/hypermarkets segment held a significant share in 2019, owing to increase in benefits offered by it such as discounts and availability of optimum options for cosmetics product. Moreover, the one-stop solution provided by these retail formats makes it a popular option for shopping for consumers. Furthermore, these retail formats offer a wide range of products at a competitive price to customers and are usually located at easily accessible areas, which propel the growth of the global ready-to-drink tea market.

Region wise, North America dominated the market in 2019, and accounting for the maximum share. The North America ready-to-drink tea market is mature and homogenous with high penetration, which is dominated by leading key players such as Coco Cola Company, Nestle, and Unilever. Moreover, shift in preference of consumers toward healthier alternatives of caffeinated beverages and toward tea and coffee is expected to provide opportunities for growth of the ready-to-drinktea market. To cater to increasing demand of customers, companies are acquiring big and local players to expand their product portfolio of RTD tea in the region.

Players in ready-to-drink tea market have adopted business expansion and product launchas their key development alstrategiesto expand their market share, increase profitability, and remain competitive in the market. The key players profiled in the report include Suntory Holdings, Nestle S.A, Unilever NV, The Coca Cola Company, Starbucks Corporation, The Republic of Tea, Tata Global Beverages, Danone S.A., Snapple Beverage Corp.(Keurig Dr Pepper), and Harney & Sons Fine Teas.

Key Benefits For Stakeholders

• The report provides a quantitative analysis of the current ready-to-drink tea market trends, estimations, and dynamics of the market size from 2019 to 2027 to identify the prevailing opportunities.
• Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
• In-depth analysis and the market size and segmentation assist to determine the prevailing ready-to-drink tea market opportunity.
• The major countries in each region are mapped according to their revenue contribution to the market. 
• The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the ready-to-drink tea industry.

 Ready-to-drink (RTD) Tea Market Report Highlights