The global ready to drink tea and coffee market size reached US$ 94.3 billion in 2021. Looking forward, market researcher Research & Markets expects it to reach US$ 140.7 billion by 2027, exhibiting a CAGR of 6.9% during 2021-2027.
Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic. These insights are included in the report as a major market contributor.
Ready to drink (RTD) tea and coffee refer to pre-prepared packaged beverages that are ready for consumption at the time of purchase. Some of the commonly available RTD tea includes fruit, black, green, herbal, matcha, oolong and iced, and RTD coffee includes yerba mate, guarana, acai berry, ginseng, taurine and iced variants.
They are manufactured using various additives, extracts, preservatives, artificial and natural sweeteners, flavors, acidulants and nutraceuticals. These products are usually fortified with essential vitamins and minerals and are a rich source of antioxidants. For instance, RTD green tea is infused with catechin, and black coffee is enriched with vitamin B, potassium, magnesium, polyphenols and caffeine.
They are widely served in cans, glass bottles, polyethylene terephthalate (PET) bottles and aseptic cartons. In comparison to the conventionally used beverage mixes, powders or brew-it-yourself tea or coffee products, RTD tea and coffee offer various health benefits and enhanced convenience to the consumers.
Rising Popularity of Ready-to-Drink Beverages Boosting the Market Growth
The market is primarily driven by the increasing demand for RTD beverages, such as packaged teas and coffees, across the globe. The changing lifestyles, increasing expenditure capacities and shifting dietary preferences of consumers are further providing a thrust to the market growth.
Due to the increasing working population and hectic schedules, the consumption of RTD tea and coffee products has escalated significantly. Consumers are increasingly preferring food and beverages that require minimum time to prepare and can be consumed on-the-go. The canned and bottled packaging of these beverages are also adding to the convenience of consumers, thereby increasing their overall demand.
Significant growth in the Food and Beverage Industry Favoring the Market Growth
The increasing demand for ready-to-drink tea and coffee is further supported by significant growth in the food and beverage industry across the globe. Hotels, cafes and quick serving restaurant (QSR) chains are offering a wide variety of RTD beverages to their customers.
They are also used as recreational products to attract the younger population seeking a healthier alternative to carbonated drinks that have high sugar content. RTD teas and coffees have low-calorie content and are also known to relieve stress, anxiety and improve mental functioning, energy levels, hydration levels and eyesight.
Certain variants infused with herbs and spices, such as ginger, cumin, fennel, basil and rosehip, also have anti-inflammatory compounds that aid in reducing body pain, bloating, arthritic joint pain and muscle soreness. Moreover, RTD coffees are being considered as a gourmet product and are widely preferred by consumers to relax from their hectic schedules.
Shifting Preference Toward Organic Product Variants to Create Positive Outlook for the Market
The emerging trend of better-for-you beverages has significantly enhanced the demand for RTD tea and coffee. The rising health consciousness among the masses has also led to the increasing demand for healthier and organic beverages that are manufactured using non-genetically modified organism (GMO) ingredients or functional formulations. The product manufacturers are also developing variants with improved flavors that are produced using plant-based milk and infused with fruity and floral flavors, such as apple, peach, orange, lavender and rose