Rtd Tea Market | Contrive Datum Insights

RTD Tea Market Overview:

The Global RTD Tea Market Is Anticipated To Reach USD 33 Billion In 2022., Expanding At A CAGR Of 7.9% From 2022 To 2030, With A Value Of USD 60.62 Billion By 2030.

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RTD tea is prepared and ready-to-drink tea that has been packed. It is available in a range of tastes from the major market competitors. Tea is the most common non-alcoholic beverage after water. The growing consumer attention on living a healthy lifestyle as a result of improved understanding about the health advantages of RTD tea is an important factor in the expansion of the global market for ready-to-drink tea. RTD also enhance weight loss, alleviates body and headache discomfort, decreases cholesterol levels, and reduces the chance of heart attack. The accompanying benefits, as well as increased public awareness of the benefits of adopting a healthy lifestyle, are expected to propel the global market's growth in the coming years. It is anticipated that an increase in disposable income, the availability of ready-to-drink tea in convenient and appealing packaging, and an increase in the number of cafés, online and offline retail stores, and food outlets will all contribute to the growth of the global ready-to-drink tea market.

COVID-19 Impact:

Because of COVID-19, the market for ready-to-drink tea and coffee around the world grew. Countries have taken steps like social isolation and lockdowns, which have had a big effect on restaurants, cafes, tea micro-roasters, and other places where people go outside of their homes. Still, the current trend of buying coffee online to drink at home is forcing retailers, roasters, and consumers to adjust to this new reality. So, this makes more people around the world buy RTD coffee and tea. So, in 2020, there is more demand for RTD tea and coffee, which has led to better sales of RTD tea and coffee in the retail sector.

Market Dynamics:

Market Trends:

The growth rate of the RTD tea market is being driven by more people learning about the health benefits of RTD tea. Consumers are becoming more aware of how important it is to live a healthy life, which will help the ready-to-drink tea market grow in the long run. RTD helps you lose weight, reduces headaches and body pain, and lowers your cholesterol and heart attack risk. More and more people are thinking about how the food they buy affects the world.

The market is expected to grow around the world in the coming year because of the health benefits and growing interest in living a healthy life. The growth of the ready-to-drink tea market is also expected to be helped by a rise in disposable income, the availability of ready-to-drink tea in convenient and attractive packaging, and an increase in the number of cafes, online and offline retail stores, and food outlets around the world. On the market, different sellers of the tea package offer it in different flavors. There are many companies that make tea bags (called "Dip bags"), which are most popular in developed areas. People who know and understand the health benefits of tea are more likely to try to live a healthy life. The market for RTD tea is largely driven by how easy and flexible it is to use. Rising socialization and social gatherings of people of all ages, especially millennials, has increased the demand and need for ready-to-drink coffee that is easy to find and can be taken with you. The market is also growing because RTD tea is easy to get through many different channels.

Driving Factors:

• Consumer’s Health Consciousness Contributes to the Expansion of the Market

RTD Tea sale is on the rise as a result of growing consumer awareness of the health risks of carbonated beverages. Customers are more compelled to drink healthier beverages as a result of the global increase in diseases like diabetes and obesity. RTD tea is a favourite among health-conscious consumers because of its antioxidant properties, low calorie content, and ability to provide rapid energy. Some preparations that combine anti-inflammatory ingredients with herbs and spices like ginger, cumin, fennel, basil, and rosehip can aid with bloating, arthritis-related joint pain, and stiffness of the muscles.

• Rising Popularity of Ready-To-Drink Beverages Encourage Ready to Drink Tea Market

Due to the expanding working population and tight schedules, RTD tea consumption has greatly expanded. Consumers are becoming more and more accustomed to quick-to-prepare foods and drinks that can be consumed anywhere. Consumer convenience is increased by the canned and bottled packaging of these beverages, which in turn increases consumer demand. Likewise, young people are avoiding synthetic sports drinks in favour of RTD beverages for an instant energy boost in both developed and developing nations. 56% of adults use functional beverages to cure or prevent a particular condition, per the "Functional Food & Beverages and Supplements 2020" research by The Hartman Group. As the per capita disposable income rises, consumer health awareness also rises. Also, during the projected period, the market for RTD tea will be significantly influenced by the growing marketing trend, clever advertising, expanding functionality, and strong positioning of RTD tea.

Restraining Factors:

• High Costs

The global ready-to-drink tea market is anticipated to be restrained by the high price of ready-to-drink green tea compared to RTD black tea products and the rising consumption of ready-to-drink coffee. During the forecast period, however, the expansion of product portfolios and the introduction of novel flavors are anticipated to offer lucrative growth opportunities for the global RTD tea market.

• Rising the Prevalence of Lifestyle Disorders

Today's consumers are increasingly aware of the effects of their food choices. Because of the rising prevalence of lifestyle disorders like as obesity and diabetes, as well as the enhanced knowledge interchange made possible by technology, consumers now have the ability to learn more about the food they eat. As a result, it is challenging for manufacturers to maintain a competitive edge while fast reacting to altering consumer needs.

Opportunities:

• Introduction to New Tastes

Several companies in the tea industry are putting out different kinds of organic tea, green tea, and fruit tea to broaden their product lines and increase sales. There is tiramisu black tea, caramel truffle herbal tea, custard tart herbal tea, peach turmeric herbal tea, apple pie à la mode herbal tea, and caramel apple tea. People have been talking about the natural health benefits of these flavored teas for a long time, like how they can help you lose weight, build muscle, and keep your digestive system healthy. Because of this, it is expected that each of these factors will help the RTD tea market grow in a good way during the study period.

• Plant-Based Micronutrients Propel the Growth of Market

People who care about their health like the category because it has a high concentration of antioxidants and polyphenols, plant-based micronutrients like zinc, vitamin C, B complex, etc., exotic herbs, and green tea as its base. This helps the RTD tea segment grow. Also, it helps support a lot of health benefits thanks to important compounds in the herbs or ingredients, which increases its demand around the world and helps the market grow.

• Adoption of Innovative Packaging Methods
• Changing Lifestyles and Rising Disposable Income in Emerging Nations

Challenges:

• The High Cost of Raw Materials Hinders the Expansion of the Market

The increase in the price of agricultural inputs and the unpredictability of the weather have a significant impact on the raw materials required for tea and coffee. According to the International Coffee Organization, coffee prices continue to rise on a monthly basis and stabilized at $200 per kilogram on February 8, 2022. RTD Tea is a premium beverage due to the inclusion of high-quality ingredients and healthful compounds, making it more expensive than traditional Tea. Additionally, government taxes on premium category foods and beverages are high, which drives up the price of RTD Tea and Coffee. Consequently, these factors impede the expansion of the market over the forecast period.

Key Vendors:

Profiles of many significant individuals have been made to understand more about the businesses. It gives detailed explanations of a variety of high-level industries that operate in worldwide regions. It contains useful information such as a firm summary, contact information, and some important strategies employed by prominent players:

• Danone

Danone is a multi-national leader in the food and beverage industry, with three distinct businesses: Essential Dairy & Plant-Based Products, Waters, and Specialized Nutrition. Danone aspires to inspire healthier and more sustainable eating and drinking habits through its 'One Planet. One Health' action framework, which considers the health of people and the planet to be inextricably linked.

• Harney & Sons Fine Teas

Harney & Sons was founded on the principle of providing the highest quality tea to consumers, functions as the guiding principle of the company. Today, Harney & Sons Tea is still family-owned and managed, with three generations of Harney's traveling the globe in pursuit of the finest ingredients and preserving John's tradition of fine tea.

• Nestle S.A

The goal is to unlock the potential of food to improve the quality of life for everyone, both now and for future generations. To deliver on this, they serve with passion, with a spirit of excellence, offering products and services for all stages of life, every moment of the day, helping people care for themselves and their families.

• Snapple Beverages Corp

Over 40 varieties of ready-to-drink sweetened and diet beverages, juice drinks, and waters are produced by Snapple Beverage. The Snapple brand lineup is flavored with familiar fruits (apple and lemon) as well as exotic fruits (passion fruit) (pomegranate and papaya).

• Starbuck Corp

Starbucks Corporation is a specialty coffee roaster, marketer, and retailer with operations in approximately 83 markets. It has more than 35,000 Company-owned and licensed locations. It consists of three segments: North America consists of the United States and Canada; International consists of China, Japan, Asia Pacific, Europe, the Middle East, Africa, Latin America, and the Caribbean; and Channel Development.

• The Coca-Cola Company

The Coca-Cola Company (NYSE: KO) is a beverage conglomerate that offers over 500 brands in over 200 countries and territories including some of the world's most valuable beverage brands, including AdeS soy beverage products, Fanta, Georgia coffee, Gold Peak teas and coffees, Ayataka green tea, Dasani waters, Del Valle fruits and nectars, Fanta, and Georgia coffee. Honest Tea, innocent juices and smoothies, and Minute Maid juices, Powerade sports drinks, simply juices, Sprite, vitaminwater, and ZICO coconut water.

• Unilever

The product line consists of nutritionally balanced foods, indulgent ice creams, affordable soaps, luxurious shampoos, and commonplace household care items. We produce world-renowned brands such as Lipton, Knorr, Dove, Axe, Hellmann's, and Omo, along with trusted local names and forward-thinking, innovative brands such as Ben & Jerry's, The Dollar Shave Club, and Dermalogica.

• Argo Tea

Argo Tea is the leading provider of tea beverages in the world, offering innovative, all-natural products in the consumer packaged goods industry and through its flagship retail cafés. Argo Tea cafés globally established a brand-building marketing platform that serves over 10 million cups of tea annually.

• Uni-President

Uni-President China Holdings Limited is the second largest manufacturer and supplier of tea, milk tea ready-to-drink, and instant noodles in China. It is the mainland China subsidiary of Uni-President Enterprises Corporation, Taiwan's largest manufacturer of processed foods. Significant market positions are held by the company in the categories of tea, milk tea, juice, coffee, water, and instant noodles. The Uni-President Enterprises Corporation is a multinational culinary corporation headquartered in Tainan, Taiwan.

• Amul

India's greatest food products organization is Gujarat Cooperative Milk Marketing Federation (GCMMF) (2021-22). AMUL, the apex organization of the 18 milk cooperatives in Gujarat, seeks to provide remunerative returns to farmers and to serve the interests of consumers by providing high-quality, cost-effective products. Milk- UHT and pouch, buttermilk, ghee, butter, sweetened condensed milk, milk granules, infant milk food, dairy whitener, tea and coffee whitener, lassi, and ice cream are included in the product line.

• F & N Foods

Fraser and Neave, Limited (F&N) was founded in 1883 and is now a prominent player in the food and beverage industry in Singapore and Malaysia. Pure Enjoyment, Pure Goodness is the guiding philosophy of F&N, which is committed to meeting the health and wellness requirements of consumers in the region and throughout the globe. F&N has developed a diverse and engaging portfolio of healthy beverage and food products.

• Haelssen & Lyon

Halssen & Lyon is one of the oldest and most prominent tea companies in Europe, with headquarters in Hamburg's historic warehouse district Speicherstadt and a major production facility and warehouse in Hamburg-Allerohe. Since the company's founding in 1879, it has been family-owned.

Strategic Development:

• September 2022 - Honest Tea launched Just Ice Tea, a ready-to-drink organic iced tea brand focused on sourcing simple ingredients and Fair Trade Certified teas and sweeteners. The new line is available in various flavors such as Berry Hibiscus Herbal Tea, Honey Green Tea, Moroccan Mint Tea, Peach Oolong Tea, and a few others.
• May 2022 - Lipton launched the new Lipton Immune Support ready-to-drink (RTD) tea beverage. Lipton Immune Support is an RTD iced tea blend of green tea, Vitamin C, and Zinc, and it’s available as a permanent line item at national retailers in Green Tea Pineapple Mango flavor in 12-packs and 64-ounce bottles, and Diet Green Tea Pineapple Mango flavor in 12-packs.
• September 2021 - Arizona launched Saint James Tea RTD green tea, with three flavors – Pineapple & Mango, Passionfruit & Peach, and Blueberry & Raspberry alongside Original Green Tea, which was initially launched in Florida.

Segmentation Analysis:

The majority of the major market players are currently found in North America and Europe, giving them easy access to RTD tea consumers. In developed markets, RTD tea is simultaneously marketed as a premium product. Given the high demand for premium goods in developed economies, the RTD tea market in these countries is likely to grow.

Among other regions, the Middle East and Africa are anticipated to have the highest growth rates in the RTD tea market, followed by Asia Pacific excluding Japan. Along with the protein-rich food and beverage products, the gym accessories are benefiting from the growing gym culture and trend for health and wellness in these developing nations. Together, rising middle class populations and rising consumer awareness of premium goods are fueling market expansion in the aforementioned region segmentation Analysis.

The market for ready-to-drink tea was dominated by black tea in 2019, and it is expected that this trend would continue during the projected period. This is due to the growing number of tea drinkers throughout the world. Black tea is popular among those who are concerned about their health due to its high antioxidant and polyphenol content. This encourages the market for black tea to expand. In addition to treating high blood pressure, cancer, and headaches, it also promotes market expansion worldwide.

Supermarkets and hypermarkets controlled a significant portion of the market in 2019. This was because it provided more advantages, like discounts and the greatest alternatives to beauty products. Also, these retail formats are a preferred way for customers to buy because they offer everything in one place. Additionally, these retail formats offer clients a wide range of goods at affordable prices, and they are frequently situated in convenient areas. The demand for tea that is already prepared to drink grows as a result.

By Type Outlook:

Based on type, the global RTD tea market has been segmented into black tea, green tea, white tea, and others. The black tea segment reported for the largest global RTD tea market share in 2021. Its popularity as a traditional tea across the globe has resulted in the dominance of the segment over the past years. However, the green tea segment is projected to register the highest CAGR during the forecast period. Unoxidized green tea contains less caffeine than other forms of tea. In addition, it regulates the metabolic rate and aids in weight loss, which drives its popularity as a functional beverage.

• Herbal
• Black tea
• Green tea
• Others

By Category:

By category, the global RTD tea market has been divided into organic and conventional segments. The conventional segment is anticipated to dominate the market in 2022 as a result of the global availability of the products. Nevertheless, the organic segment is anticipated to record the highest CAGR over the forecast period due to increasing consumer awareness of organic RTD tea and rising investment by key players in the product launch of organic RTD tea.

• Organic
• Conventional

By Packaging:

The global RTD tea market has been segregated, by packaging type, into bottles, cans, and cartons. The bottles segment is anticipated to lead the market in 2022 due to the convenience of consumption and storage. In addition, innovative bottle packaging and the availability of bottles in various sizes are propelling the expansion of this market segment. Consequently, the bottles segment is anticipated to experience the maximum CAGR over the forecast period.

• Bottles
• Cans
• Cartons

By Application Outlook:

On the basis of application, the global market for RTD tea has been divided into store-based and non-store-based segments. The store-based sector is subdivided into supermarkets and hypermarkets, convenience stores, and others. In 2022, the store-based segment reported for the larger share of the market. However, the non-store-based segment is projected to register the higher CAGR during the forecast period. The growth of the non-store-based segment is primarily driven by the major companies' inclination toward e-commerce platforms for the distribution of their products and an expansion of their reach.

• Store-Based
• Supermarkets and Hypermarkets
• Convenience stores
• Other
• Non-store Based

Regional Insights:

The Asia Pacific made the largest contribution to the global market, accounting for over 42.6% of the revenue in 2021. The demand for tea and coffee in the region is driven by countries such as India, China, and Japan, which have numerous tea and coffee plantations. The market in the Asia Pacific is expected to witness healthy growth over the coming years, particularly in Indonesia and Thailand. In addition, the penetration of modern grocery retail chains in ASEAN countries, including Malaysia, Thailand, Indonesia, and the Philippines is enhancing the sales of RTD tea and coffee.
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North America dominated the market in 2019 and accounted for the largest share. The majority of the leading market companies are currently found in North America and Europe, giving them easy access to RTD tea consumers. These RTD teas are simultaneously promoted as premium goods in developed markets. With the increasing demand for premium goods in developed nations, the RTD tea industry in these countries is expected to grow.

The Middle East and Africa, among other regions, are expected to have the highest growth rates in the RTD tea industry, followed by Asia Pacific excluding Japan. Gym accessories, like protein-rich meals and beverages, are profiting from the expanding gym culture and demand for health and wellness in these emerging countries. Rising middle-class populations and increased consumer awareness of luxury items are driving market expansion in the aforementioned regions.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• The study provides a quantitative analysis of the current ready-to-drink tea industry's trends, estimations, and market size dynamics in order to identify existing opportunities.
• Besides this, market size, and segmentation help to identify the dominant ready-to-drink tea market opportunity. Porter's five forces analysis highlights the power of buyers and suppliers to assist partners to make profit-oriented business decisions and strengthen their supplier-buyer network.
• The market player positioning section promotes monitoring and offers a clear knowledge of the current position of the market participants in the ready-to-drink tea industry. 
• Each region's main countries are mapped according to their market revenue contribution.