Global Ready-To-Drink (RTD) Tea Market Grows Steadily at a CAGR of 5.6%

Introduction

RTD tea is a tea that has already been made and packaged for consumption. The two most common types of tea are black tea, favored in the West, and green tea, preferred in Asia. More and more people are learning about the health benefits of ready-to-drink (RTD) tea, which has contributed to the growth of the RTD tea market worldwide. As a bonus, RTD also aids in reducing cholesterol and the risk of heart disease and other diseases, in addition to facilitating weight loss. The global market is expected to increase quickly over the next several years as more and more individuals become aware of the importance of healthy lifestyle choices.

Market Dynamics

Rise in Per Capita Income of the Middle-Class Drives the Global Market

Due to increased consumer awareness of the health advantages of RTD tea and substantial marketing and advertising by major brands, customer taste for drinking tea has shifted, which is fueling the expansion of the worldwide RTD tea market. Urban, populous young adults who are joining the middle class eat more tea and do so at higher prices. The demand for premium tea is projected to rise due to these factors. Therefore, the exponential rise of the middle-class population, which also spends money at hotels and cafés, fuels the demand for RTD tea and other beverages in the commercial sector.

Introduction of Fresh Flavors Creates Tremendous Opportunities

Numerous market participants in the tea sector are developing various varieties of organic, green, and fruit tea to expand their product offerings and boost market sales. Several of them include caramel apple tea, caramel truffle herbal tea, custard tart herbal tea, peach turmeric herbal tea, and apple pie à la mode herbal tea. These flavored teas have a long history of marketing their natural health benefits, including their capacity to promote digestive health, help with weight loss, and help build muscle. The RTD tea market is expected to increase profitably due to each of these variables during the research period.

Regional Analysis

North America is the most significant revenue contributor and is anticipated to exhibit a CAGR of 5% over the projection period. Research is being done on the RTD tea markets in the U.S., Canada, and Mexico. Future growth in this area is predicted to be mild. North America encourages the sale of food and drinks thanks to highly developed distribution networks and a developed economy. Due to consumers' growing acceptance of healthy lifestyles, RTD tea consumption is increasing in the area, driving the market's rise. North America's market has been consolidating due to fierce competition. Additionally, the movement in consumer preferences toward tea, coffee, and healthier caffeinated beverage substitutes would present growth prospects for the RTD tea industry. Due to the existence of crucial regional market participants with high-volume manufacturing facilities, RTD tea production is also increasing. All these factors work together to promote the global market's expansion.

Europe is anticipated to grow at a CAGR of 5.7% during the forecast period. Growing health and fitness consciousness leads to raised nutritious meals and beverage consumption. The difference between out-of-home and coffee consumption is narrowing thanks to rising commercial tea consumption. Germany and the United Kingdom are the main European RTD tea markets. The demand for RTD tea in Europe is expanding as more people choose to drink tea and coffee. The rise in health and body image issues, which have led individuals in this region to accept green tea as a nutritious beverage to fight obesity, is another fueling the expansion of the RTD tea market. Green tea is becoming more and more well-liked among European consumers because of its various nutrients and several health benefits. Herbal and ginger flavors are well-liked tastes. Tea has a variety of components that boost metabolism, decrease cholesterol, and prevent cancer, including vitamins, amino acids, flavonoids, and trace minerals.

Key Highlights

• The global ready-to-drink (RTD) tea market size was valued at USD 29,734.9 million in 2022. It is expected to reach USD 48,555.87 million by 2031, growing at a CAGR of 5.6% during the forecast period (2023–2031).
• Based on type, the global ready-to-drink (RTD) tea market is bifurcated into green tea and black tea. The black tea segment is the highest contributor to the market and is expected to grow at a CAGR of 5% during the forecast period.
• Based on category, the global ready-to-drink (RTD) tea market is bifurcated into organic and conventional. The conventional segment is the highest contributor to the market and is expected to grow at a CAGR of 5.2% during the forecast period.
• Based on distribution, the global ready-to-drink (RTD) tea market is bifurcated into supermarkets/hypermarkets, specialty stores, and online stores. The supermarket/hypermarket segment is the highest contributor and is expected to grow at a CAGR of 4.90% during the forecast period.
• North America is the most significant revenue contributor and is expected to grow at a CAGR of 5% during the forecast period.

Competitive Players

Competitive Players

The global ready-to-drink (RTD) tea market's major key players are Danone, Harney and Sons Fine Teas, Nestle S.A., Snapple Beverage Corp., Starbucks Corporation, Beam Suntory, Inc., Tata Consumer Products Limited, The Coca-Cola Company, the Republic of Tea, and Unilever Plc.

Recent Developments

Market News

• In August 2022, Danone declared the issuance of a Euros 600 million, 10-year bond with a coupon of 3.071%. This offering allows Danone to increase its funding flexibility while extending its debt maturity, keeping with the company's active liquidity management.
• In November 2022, Neo, its next-generation "Coffee Shop at Home" experience, was introduced by Nescafé Dolce Gusto.

Segmentation

Global Ready-To-Drink (RTD) Tea Market: Segmentation

By Type

• Green Tea
• Black Tea

By Category

• Organic
• Conventional

By Distribution Channel

• Supermarket/Hypermarket
• Specialty Stores
• Online Stores

By Regions 

• North America
• Europe
• Asia-Pacific
• LAMEA