The global ready-to-drink (RTD) tea and coffee market is steadily growing according to a new report, giving private brands an insight into how they can improve their beverage portfolios.
The report from Grand View Research found that the category is expected to reach $167.88 billion by 2030, growing at a compound annual growth rate of 6.2% during the period. The firm attributes the projected growth to a greater global acceptance of tea and coffee as healthier substitutes to soft drinks. Grand View Research recently found that the global fruit and vegetable juice market is growing as well for similar reasons.
The RTD tea segment led the market and accounted for a 63.8% share of the global revenue in 2021. The RTD coffee segment is anticipated to expand at the fastest CAGR of 6.4% from 2022 to 2030.
Key findings from the report include the following:
The Asia Pacific region held the largest revenue share of the global market in 2021. Consumers in the region are becoming increasingly health-conscious and choosing healthy beverages over soft drinks, which is supplementing the market growth.
During the forecast period, online distribution is expected to grow at the fastest rate. The availability of a wide range of RTD products of different brands, free delivery, and seasonal discounts on eCommerce platforms such as Amazon are driving segmental growth.
Branding efforts and clever marketing strategies implemented by RTD manufacturers are attracting consumers of various age groups. Though Millennials are the market's major consumers, the overall working population is also shifting to these trending beverages.
The full report from Grand View Research can be found here.