Ready To Drink Coffee & Tea Drinks Market Forecast, 2022-2027
Ready To Drink Coffee & Tea Drinks Market Size is estimated to reach $117.3 billion by 2027. It is poised to grow at a CAGR of 5.8% over the forecast period of 2022-2027. Ready-to-drink (RTD) tea and coffee refer to pre-prepared packaged beverages that are ready for consumption at the time of purchase. The growing demand for ready-to-drink tea like (oolong tea, black tea and green tea) and coffee such as (Ginseng, Vitamin B, Taurine, Guarana, Yerba Mate, Acai Berry) is encouraged by substantial growth in the global food and beverages industry. Low-calorie RTD teas and coffees are also known to decrease stress and anxiety as well as improve brain functioning, energy, hydration and eyesight. Low-calorie RTD teas and coffees are also known to decrease stress and anxiety as well as improve brain functioning, energy, hydration and eyesight. Anti-inflammatory components in certain variations blended with herbs and spices including ginger, cumin, oolong tea, ginseng, fennel, basil and rosehip help with bodily pain, bloating, arthritic joint pain and muscular stiffness. Furthermore, iced coffee is regarded as a gourmet product and consumers prefer them to relax from their stressful schedules. RTD teas and coffees are customized to provide personalized health benefits to the consumers to fulfil the nutritional gaps; especially in women and children. Customers get to choose from a wide range of RTD beverages at hotels, cafes and quick service restaurant (QSR) chains. They are also used as recreational products to attract the younger generation who is looking for a healthy alternative with high-sugar carbonated beverages.
The market is primarily driven by rising global demand for RTD beverages, such as packaged tea and coffees. Consumers' changing lifestyles, increased spending capacity and changed nutritional choices are all contributing to the market expansion. These beverages' canned and bottled packaging adds to the convenience of consumers, consequently raising their overall demand during the forecast period 2022-2027.
Ready To Drink Coffee & Tea Drinks Market Report Coverage
The “Ready To Drink Coffee & Tea Drinks Market Report - Forecast (2022-2027)" by Industry ARC, covers an in-depth analysis of the following segments in the Ready To Drink Coffee & Tea Drinks Market.
Key Takeaways
- Geographically, Asia-Pacific held a dominant market share in the year 2021 to a rise in the demand for Global RTD Coffee And Tea Drinks.
- Rise in the number of health-conscious people who chose RTD Tea for its antioxidant properties. The top manufacturers' strategies to expand in the market include customizing health-beneficial items for women and children, during the forecast period of 2022-2027.
- However, global climate change increases the prices of raw materials and may impede the market expansion throughout the forecast period.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Ready To Drink Coffee & Tea Drinks Market Report.
Rising Popularity of Ready-To-Drink Beverages Encourage Ready TO Drink Coffee & Tea Drinks Market
The consumption of RTD tea and coffee products has increased significantly as a result of the growing working population and hectic schedules. Food and beverages that take little time to prepare and can be consumed on the go are becoming increasingly popular among consumers. These beverages' canned and bottled packaging adds to the convenience of consumers, consequently raising their overall demand. Furthermore, for an instant burst of energy, young people in both developed and developing countries are switching to RTD beverages instead of synthetic sports drinks. According to The Hartman Group’s report, “Functional Food & Beverages and Supplements 2020”, 56% of adults use functional beverages to treat or prevent a specific condition. Consumer health awareness is increasing as the per capita disposable income rises. Furthermore, in the forecast period, the rising trend of marketing, smart advertising, rising functionalities and strong positioning of RTD tea and coffee serve as major drivers of the market for RTD tea and coffee.
Ready To Drink Coffee & Tea Drinks Market Challenges
High Price of Raw Materials is Posing Challenges to the Market Growth.
The rise in the cost of agricultural inputs & unpredictable weather majorly influence the raw material required for tea & coffee. As per the International Coffee Organization, Coffee prices continuously increase month-on-month basis & stabilized at a $200 for 0.45 kg on 8 February 2022. The cost of RTD Tea & Coffee is higher than traditional Tea & Coffee as a result of high-quality ingredients & beneficial compounds added, making it a premium beverage. Also, government taxes on premium category food & beverages are high which increases the cost of RTD Tea & Coffee. Thus, these factors hamper the market expansion over the projected forecast period.
Ready To Drink Coffee & Tea Drinks Industry Outlook
Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Ready To Drink Coffee & Tea Drinks Market. The top 10 Ready To Drink Coffee & Tea Drinks Market companies are:
- Asahi Group Holdings Ltd.
- Monster Beverage Company
- Starbucks Corporation
- PepsiCo Inc.
- The Coca-Cola Company
- Hangzhou Wahaha group
- Unilever PLC.
- Uni-President Enterprises Corporation
- Nestle S.A.
- Ting Hsin International Group
Recent Developments
- In January 2022, Monster Beverage Company acquired Canarchy Craft Brewery Collective LLC, a craft beer & hard seltzer company for $330 million & entered into the alcoholic beverage sector. The acquisition includes the Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters & Wasatch brands
- In January 2022, Starbucks expanded into India and enter six new markets in smaller cities, which are Siliguri, Nashik, Guwahati, Thiruvananthapuram, Goa & Bhubaneswar. With this expansion, the company operates 252 Starbucks stores in 26 cities. It has opened 51 new outlets in the past 12 months
- In June 2020, Anheuser-Busch InBev announced that it has completed its previously announced sale of Carlton & United Breweries (CUB), its Australian subsidiary, to Asahi Group Holdings Ltd. for $11 million. CUB beer brands include Victoria Bitter, Carlton Draught, Fat Yak, Crown Lager, Froster’s & Balter.
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