Tea and coffee that come in packed form and don't need to be further prepared are referred to as ready-to-drink. Because they accommodate customers' fast-paced lifestyles, these portable and easy-to-use choices have been incredibly popular in recent years. A delightful and thirst-quenching experience, ready-to-drink teas are often prepared and packaged in a variety of tastes, such as black, green, white, or herbal. However, ready-to-drink coffee, which is available in a variety of forms like lattes, iced coffees, and cold brews, offers a rapid caffeine dose without requiring any brewing or barista skills. Because of their convenience, they are a popular option for people who are always on the go and need a tasty pick-me-up while traveling or working. Additionally, they frequently come in single-serve containers, which preserves freshness and cuts down on waste.
Global Ready to Drink Tea and Coffee Market Driving Factors and Challenges
Driving Factors: The growing popularity of on-the-go consumption, particularly among the metropolitan population and younger demographics, has greatly aided market expansion. Consumers are drawn to the large range of flavors and kinds offered in the ready-to-drink (RTD) tea and coffee category, which appeal to their various tastes. The trend towards healthier and more convenient beverage options has contributed significantly to market growth. As health and wellness trends gain traction, RTD tea and coffee products are increasingly featuring functional ingredients, natural and clean label formulations, specific health claims, specialized variations, and lower sugar content. RTD tea and coffee are a type of soft drink, but they serve a different purpose and have been shown to have health advantages. RTD tea and coffee have grown in popularity due to changing lifestyles that promote on-the-go dining and a growing trend of substituting meals with smaller healthy snacks and drinks.
Challenges: RTD tea and coffee products may be regarded to be more expensive than conventional handmade alternatives or non-alcoholic beverages. This affordability concern may influence the purchasing decisions of price-conscious customers. Carbonated soft drinks, fruit juices, and energy drinks are among the beverages that compete in this sector. If RTD tea and coffee prices are much higher than these alternatives, customers may choose more affordable options. The demand for RTD tea and coffee products may be elastic, which means that price changes can have a corresponding effect on customer demand. High price elasticity makes it difficult for businesses to implement price increases without considerably lowering sales volume. Thus, price sensitivity is hindering market growth.
Impact of COVID-19 on Global Ready to Drink Tea and Coffee Market
The Covid-19 epidemic had a major impact on the ready-to-drink tea industry. While the initial stages of the pandemic caused supply chain disruptions and lowered consumer spending, the market quickly rebounded and sustained growth, driven by numerous factors:
- Health Consciousness: The pandemic increased consumer awareness of the importance of health and immunity. As a result, there has been an increase in demand for health-promoting beverages, such as RTD tea.
- E-commerce expansion: The pandemic has expedited the expansion of e-commerce platforms, giving people the opportunity to buy RTD teas online. This shift in customer behavior accelerated market expansion.
Global Ready to Drink Tea and Coffee Market Key Players:
Suntory Holdings Ltd, PepsiCo Inc, Nestle S.A, Sapporo Beverage Co. Ltd, Coca-Cola Company, Starbucks Corporation, Monster Beverage Company, Ting Hsin International Group, Uni-President Enterprises, and Danone are just a few of the major market players that are thoroughly examined in this market study along with revenue analysis, market segments, and competitive landscape data.
Global Ready to Drink Tea and Coffee Market Segmentation:
By Additives: Based on the Additives, Global Ready to Drink Tea and Coffee Market is segmented as; Flavors, Artificial sweeteners, Acidulants, Nutraceuticals, Preservatives and Others.
By Type: Based on the Type, Global Ready to Drink Tea and Coffee Market is segmented as; Ready to drink tea and Ready to drink coffee.
By Packaging: Based on the Packaging, Global Ready to Drink Tea and Coffee Market is segmented as; Glass bottle, Canned, Pet bottle, Others.
By Price: Based on the Price, Global Ready to Drink Tea and Coffee Market is segmented as; Premium, Regular, Popular priced, Fountain, Super premium.
By Distribution Channel: Based on the Distribution Channel, Global Ready to Drink Tea and Coffee Market is segmented as; Supermarket/Hypermarket, Convenience Store, Food Service and Others.
By Region: This research also includes data for North America, Asia-Pacific, Latin America, Middle East & Africa and Europe.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.