The ready-to-drink (RTD) tea market is capturing a valuation of USD 34.3 billion in 2023 and is projected to reach USD 72.9 billion by 2033. The market is registering a CAGR of 8% during the forecast period.
Growing Demand for Healthy Substitutes for Carbonated Drinks
The global tea market is expected to grow in the future, as research predicts. The tea package is available in different flavors from different competitors in the market. Several companies demand tea bags (dip bags) in several developed regions.
Consumer knowledge and awareness about global tea's health benefits encourage consumers to focus on living a healthy lifestyle, which is a key element driving the global ready-to-drink tea market forward. Ready-to-drink (RTD) tea also helps with weight loss, relieves headaches and body pain, lowers cholesterol levels, and lowers the risk of heart attacks.
The benefits of RTD tea and increased awareness of the need to adopt a healthy lifestyle are projected to propel the global market forward in the next years. There are a few more factors anticipated to boot the ready-to-drink tea industry such as:
Convenience, Easy Availability, and Portability of RTD Tea
The convenience and portability offered by RTD tea are important drivers for its market.
Gradual Shift in Consumer Preferences
Developed Markets Offer Impressive Growth Opportunities
The key market players are located in North America and Europe, enabling easy access to RTD tea consumers. Simultaneously, these RTD tea are premium products in developed markets. Considering the high demand for premium products in developed economies, the RTD tea market is likely to gain momentum in these economies.
The Middle East and Africa, followed by Asia Pacific Excluding Japan, are expected to exhibit a high growth rate in the RTD tea market among other regions. Expanding gym culture and trends for health and wellness in the developing countries of these regions are positively affecting gym accessories. The increasing middle-class population and awareness about premium products collectively drive market growth in the respective regions.
| Attributes | Details |
|---|---|
| Market CAGR (2023 to 2033) | 8% |
| Market Valuation (2023) | USD 34.3 billion |
| Market Valuation (2033) | USD 72.9 billion |
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The market was valued at USD 29.4 billion in 2018 and is estimated to be valued at USD 33.0 billion in 2022. Customers looked for beverages to be offered in glass and aluminum containers. In terms of health effects, some plastics were abandoned while others proved to be benign driving the global market.
The rising demand for flavored and ready-to-drink tea enhances a healthy lifestyle and changing consumers preferences are driving the global market. Many beverage manufacturers have followed biodegradable and compostable packaging due to growing health concerns. Pepsi introduced a bottle that they claim it is 100% recyclable and composed of self-generated plant by-products.
Coca-Cola established both paint-free aluminum cans and square, compostable bottles to lessen the impact of their packaging. The company has considered these products as impractical and customers cannot purchase them. The market secured a CAGR of 2.9% between 2018 to 2022.
Tea is a frequently consumed beverage in the world, and the global tea industry is growing at a significant pace. Tea is high in antioxidants and includes healthful bioactive chemicals that reduce the risk of heart disease, stimulate weight loss, and protect against cancer.
Tea is a popular beverage around the world, and people have been drinking it for centuries because of its health advantages. Varied types of tea have different health benefits, such as boosting the immune system, lowering inflammation, and so on, making it a popular beverage.
The introduction of novel tea tastes such as organic tea, green tea, fruit tea, chamomile tea, white tea, and others is expected to boost market growth. Chamomile tea, for example, is made from flowers. This tea has several benefits including improving sleep quality, promoting digestive health, controlling blood sugar levels, and improving heart health, among others.
Overall, rising demand for a healthy lifestyle, reduce chronic diseases, and staying fit are increasing the adoption of green tea.
| Countries | Market Share (2023 to 2033) |
|---|---|
| The United States | 2.7% |
| Germany | 4.9% |
| Japan | 3.2% |
| Australia | 2.7% |
| China | 6.6% |
| India | 28.5% |
| The United Kingdom | 3.8% |
The category's annual growth fluctuations during the assessment period reflect China's disproportionate significance. The woes of Tsing Hsin International Group, which ended a popular promotional campaign for its leading brand Master Kong. It was subjected to a large-scale boycott due to rumors that it was Japanese-controlled, which can mostly be attributed to a sharp drop in growth rates around 2012.
The sector remains subject to changes in Chinese consumer behavior even though forecast growth is expected to be flat. Japan and China are estimated to register a share of 3.2% and 6.6% respectively in the global market by 2033.
Japan continues to grow because of its maturity but at a relatively modest pace. Japan appears to be on the decline in the long run, as the category performs better among young people, which is a problem in one of the world's fast-aging nations.
The nations driving the big volume growth in the category are now Indonesia and Vietnam. RTD tea has proven successful in appealing to consumers searching for quick refreshments as a result of economic expansion.
Along with the research data available, key trends are summarized. With our qualitative analysis, insight, and confident growth estimates, we can identify and assess competitor threats and establish a marketing strategy.
If you operate in the Tea industry in the United States, our research assists with making well-informed decisions, discovering and benefitting from possibilities, and providing resilience in the face of market volatility. The United States is estimated to secure a share of 2.7% in the global market during the forecast period.
The black tea section accounted for the high ready-to-drink tea market share in 2019 because of the growth in several tea drinkers around the universe. It is further expected to stay influential throughout the ready-to-drink tea market prediction period.
Black tea's high concentration of antioxidants and polyphenols makes it popular among health-conscious consumers, propelling the segment's growth. Besides, it assists in the treatment of aches and cancer, as well as the regulation of blood pressure, boosting demand worldwide and moving the market along.
The global tea market accounted for a notable share of the world market by category in 2019. It can be attributable to the fact that the popularity of RTD tea has risen in the traditional category, owing to rising standards of living and heightened awareness of the health benefits of RTD tea.
Consumers in developing economies are valued while making a purchase, so increased awareness of the health benefits of ready-to-drink tea leads to increased consumption in developing regions such as Asia-Pacific and America.
Top brands have started to incorporate specific social media strategies to engage tech-savvy young consumers in social media activities that seek great value for money, greater customization, and integrated digital access. Along with an increase in internet penetration, the number of netizens has increased substantially.
The bulk of key players in the ready-to-drink business of tea manufacturers plans to promote their products over a variety of social media platforms. The RTD tea market is expected to see a significant growth opportunity during the forecast period as a result of the group media marketing strategy.
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Recent Developments in the Global Ready-to-Drink (RTD) Tea Market:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value |
| Key Countries Covered | The United States, The United Kingdom, Japan, India, China, Australia, Germany |
| Key Segments Covered | Product Type, Sales Channel, Region |
| Key Companies Profiled | DANONE; HARNEY & 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; UNILEVER PLC |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The market boosted at a CAGR of 2.9% from 2018 to 2022.
Through 2033, the market is to develop at a CAGR of 8%.
By 2033, the market is to have expanded to USD 72.9 billion.
In 2023, the market is anticipated to reach a worth of USD 34.3 billion.
2.7% of the global market is predicted to belong to the United States.
India market to thrive with a revenue share of 28.5%.
| Market Size, 2024 | USD 6,753 million |
|---|---|
| Market Size, 2034 | USD 12,132 million |
| Value CAGR (2024 to 2034) | 6.0% |
| Market Size (2023) | USD 1.24 billion |
|---|---|
| Market Size (2033) | USD 2.69 billion |
| Market CAGR (2023 to 2033) | 8.0% |
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Ready To Drink (RTD) Tea Market
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