Global Ready-to-Drink Tea and Coffee Market Analysis and Forecast

The Ready to Drink Tea and Coffee Market  is expected to reach approximately USD 197.40 billion by 2032, growing from USD 107.18 billion in 2023, with a CAGR of 7.02% from 2024 to 2032. The increasing consumer demand for convenient and flavorful beverages that require no preparation time has driven the market’s rapid growth, catering especially to fast-paced lifestyles.

Ready-to-Drink Tea and Coffee Market Overview

Ready-to-drink tea and coffee refer to pre-packaged beverages available in various flavors and formats, which do not require any heating or preparation. The rise in hectic consumer lifestyles has amplified demand for these portable, easy-to-consume drinks, making RTD tea and coffee popular among consumers seeking convenience and high-quality taste.

RTD teas come in a variety of flavors, including herbal, green, black, and white, appealing to diverse preferences. RTD coffee varieties—such as lattes, cold brews, and iced coffee—are also designed for easy consumption, providing a quick caffeine boost. Their availability in single-serving packaging maintains freshness and promotes waste reduction, catering to consumers who prioritize both convenience and sustainability.

Key Market Drivers

1. Increasing Demand for Convenience

As consumers juggle work, family, and social responsibilities, they are increasingly turning to RTD tea and coffee options that save time without compromising on taste. Whether it’s a cold brew coffee for an energy lift or a refreshing iced tea during the workday, RTD beverages fit into busy routines seamlessly. These beverages provide an instant solution, eliminating the need to stop at a café or prepare a drink at home, making them a practical choice for those on the move.

2. Flavor Innovation and Premiumization

The RTD tea and coffee market offers an extensive range of flavors, allowing brands to cater to different tastes and preferences. From traditional black tea to exotic fruit-infused teas and rich coffee blends, the diverse options attract new customers and encourage repeat purchases. Premiumization has elevated RTD tea and coffee, with artisanal and handcrafted blends becoming popular among consumers willing to pay a premium for unique flavor profiles. The demand for high-quality RTD beverages has driven the popularity of single-origin coffee and artisanal teas, catering to a growing audience of flavor enthusiasts.

3. Health and Wellness Trends

Health-conscious consumers are increasingly opting for RTD tea and coffee over sugary sodas and carbonated drinks. As people seek better nutritional choices, RTD beverages offering low-calorie, low-sugar, and all-natural options have gained popularity. Varieties such as green tea, organic coffees, and herbal infusions are favored for their health benefits, including antioxidant properties. Additionally, brands are introducing functional ingredients—such as adaptogens, vitamins, and minerals—to appeal to consumers seeking health benefits beyond caffeine.

Regional Market Insights: Asia Pacific Leading the Charge

The Asia Pacific region dominates the RTD tea and coffee market, driven by urbanization, rising disposable incomes, and evolving consumer habits. Western influences on lifestyle and increased exposure to global trends have amplified the demand for RTD beverages in this region. In addition, diverse culinary cultures and a preference for unique flavors have fostered the development of innovative RTD tea and coffee products tailored to various local tastes. The proliferation of retail outlets, convenience stores, and supermarkets further contributes to the accessibility and popularity of RTD beverages in the Asia Pacific.

Competitive Landscape and Key Players

Prominent companies like Nestle SA, The Coca-Cola Company, PepsiCo, Starbucks Corporation, Monster Beverage, Danone S.A., Asahi Group Holdings, and Unilever are the key players in the global RTD tea and coffee market. These companies consistently engage in product innovation, strategic partnerships, and expansion initiatives to maintain their competitive edge and cater to evolving consumer preferences.

Recent Developments in the Market

• June 2023: Keurig Dr. Pepper collaborated with The Rolling Stones to launch a special “Start Me Up” iced coffee package, including a co-branded K-Cup blend, tumbler, and iced coffee maker.
• February 2023: Starbucks unveiled a unique line of olive oil-infused coffees, featuring variations like cold brew and cortado, aimed at offering a new sensory experience.
• December 2022: MatchaKo introduced an organic, vegan, and non-GMO RTD matcha tea, highlighting the trend of catering to health-conscious consumers.
• April 2022: Red Diamond Coffee & Tea expanded its RTD tea line with an 11-oz bottle to cater to on-the-go consumers.
• July 2021: Bottleshot Cold Brew, a canned coffee brand, entered the U.K. market, establishing listings on popular platforms like WHSmith Travel and Ocado.

Market Segmentation

Product Categories

1. Tea– Includes options like black, green, herbal, and fruit-infused teas.
2. Coffee– Covers a range of products from cold brews to lattes and iced coffees.

Packaging Types

1. Glass Bottles
2. PET Bottles
3. Cans
4. Other Packaging

Distribution Channels

1. Supermarkets/Hypermarkets
2. Convenience Stores
3. Online Retail
4. Other Channels

Geographical Breakdown

RTD Tea Market – Country Focus

1. China
2. India
3. Turkey
4. Japan
5. United Kingdom
6. Germany
7. United States
8. Indonesia
9. Egypt
10. Australia
11. Other Markets

RTD Coffee Market – Country Focus

1. United States
2. Brazil
3. France
4. Germany
5. Spain
6. Canada
7. Netherlands
8. Sweden
9. Finland
10. Denmark
11. Other Markets

Related Report :

School Bags Market

Children Wear Market

Global Watch Market

Conclusion

The global RTD tea and coffee market is on a steady growth trajectory, propelled by shifting consumer lifestyles, a preference for health-oriented options, and innovative flavor developments. As brands continue to emphasize premiumization and cater to health-conscious consumers, RTD beverages are set to play a prominent role in the evolving beverage landscape.

About the Company:

Renub Research is a Market Research and Consulting Company. We have more than 14 years of experience especially in international Business-to-Business Researches, Surveys and Consulting. We provide a wide range of business research solutions that helps companies in making better business decisions. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our wide clientele comprises major players in Healthcare, Travel and Tourism, Food Beverages, Power Energy, Information Technology, Telecom Internet, Chemical, Logistics Automotive, Consumer Goods Retail, Building, and Construction, Agriculture. Our core team is comprised of experienced people holding graduate, postgraduate, and Ph.D. degrees in Finance, Marketing, Human Resource, Bio-Technology, Medicine, Information Technology, Environmental Science, and many more.