Ready-to-drink (RTD) tea and coffee are seeing mounting demand owing to the busy and fast-paced lifestyle of consumers, and also as an alternative to carbonated drinks. RTD tea, in particular, is considered as a vital health drink. While RTD coffee is considered as a source providing instant energy.
This report presents a detailed review of the market for RTD tea and coffee and also provides an evaluation of the market in terms of cumulative revenue. This report segments the market in terms of types, additives, packaging and pricing, ingredients, and geography. The study draws extensively from both primary as well as secondary research. The information collated in this report has been compiled after consulting senior analysts and leading industry experts for obtaining and verifying critical information and in order to assess the future prospects of the market for RTD tea and coffee. Secondary sources include directories, databases, and encyclopedias for the identification and collection of information.
A number of market dynamics such as market drivers, opportunities, restraints, and trends, among others have also been elaborated upon in this research report. These dynamics have been evaluated on the basis of their respective effects on the growth of the market. A number of leading market players dominant in the market for RTD tea and coffee have also been highlighted along with their strategic industry activities and recent developments.
Overview of the Ready-to-drink (RTD) Tea and Coffee Market
RTD tea and coffee are gaining popularity due to a number of benefits associated with their consumption, such as, their antioxidant property, presence of low calories, and as an instant energy source. In addition, the rising cafe culture serving RTD tea and coffee is predicted to fuel the market. Consumers are more inclined towards healthy drinks due to a global rise in diseases such as diabetes and obesity.
In terms of additives, the market is segmented into preservatives, flavors, sweeteners, acidulants, and nutraceuticals. On the basis of type, the RTD tea market is segmented into fruit tea, black tea, green tea, herbal-based tea, and oolong tea. In terms of packaging and pricing, the market is segmented into glass bottle, pet bottle, canned, and cartons/fountain. On the basis of ingredients, the RTD coffee market is segmented into yerba mate, guarana, acai berry, ginseng, and taurine.
The market for RTD tea and coffee is fuelled by a number of factors including rising per capita disposable income and increasing health awareness of consumers. In addition, the increasing trend of marketing, smart advertising, rising functionalities, and strong positioning of RTD tea and coffee also act as chief drivers for the market for RTD tea and coffee. On the other hand, the growing consumption of coffee that is freshly ground and increasing prices of raw materials may impede the growth of the market in the coming years.
On the basis of geography, the market is segmented into Asia Pacific, North America, Europe, and Rest of the World (RoW). Amongst these, Asia Pacific led the market and is trailed by Europe. On the other hand, the demand for RTD tea and coffee is expected to rise in North America owing to increasing awareness on the hazardous effects of carbonated drinks and growing health awareness.
Key Players in the Ready-to-drink (RTD) Tea and Coffee Market
The prime players dominant in the global RTD tea and coffee market include Starbucks Corporation, Asahi Group Holdings Ltd., The Coca-Cola Company, Pepsico Inc., Monster Beverage Company, San Benedetto, Hangzhou Wahaha group, Ferolito Vultaggio and Sons, Dr, Pepper Snapple Group, Taisun Enterprise Co. Ltd., and Japan Tobacco Inc., among others.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.