Ready-to-drink (RTD) Tea Market Research, 2027
Ready-to-drink (RTD) tea refers to pre-prepared tea beverages that are ready for consumption without the need for brewing or mixing. These beverages are available in bottles, cans, or cartons, and come in various flavors, including black, green, and herbal teas. They are often sweetened or flavored with natural additives such as fruit and herbs, along with other added ingredients such as vitamins or antioxidants. RTD tea is popular for its convenience and is widely consumed as a refreshing on-the-go beverage.
Market Value Projections and Insights
The black ready-to-drink tea (RTD) market was valued at $13.61 billion in 2019, and is anticipated to reach $17.09 billion by 2027, with a CAGR of 4.9% during the forecast period.
In 2019, by type, the black tea segment held the highest share, accounting for 45.9%.
On the basis of category, the conventional led the market, garnering 75.8% of the global ready-to-drink tea (RTD) market share in 2019.
Depending on distribution channel, the specialty stores segment is estimated to exhibit the highest CAGR of 6.1%.
In 2019, North America was the most prominent market, and is expected to grow at a significant CAGR throughout the forecast period.
A key driver in the ready-to-drink (RTD) tea market has been the growth in consumer preference for functional beverages that promote health benefits along with hydration. Ready-to-drink teas infused with antioxidants, probiotics, or adaptogens have gained popularity owing to the perceived ability to improve digestion, boost immunity, and reduce stress of ready-to-drink tea products. Companies have responded by developing specialized products targeting health-conscious consumers, particularly in regions where demand for wellness beverages has surged, such as Japan and South Korea. Thus, the shift has contributed to the expansion of premium ready-to-drink tea varieties, aligning with global health trends in recent times.
However, increasing scrutiny on sugar content in ready-to-drink tea beverages have restrained the ready-to-drink tea (RTD) market growth. Many consumers have become more aware of the link between excessive sugar consumption and health issues such as diabetes and obesity, leading to reduced interest in highly sweetened ready-to-drink teas. This has pushed manufacturers to reformulate their products, yet balancing taste with lower sugar levels remains a challenge. Furthermore, the rise of plant-based and organic ingredients presents significant ready-to-drink (RTD) tea market opportunity. The rise in demand for clean-label products has led companies to explore organic tea leaves, natural sweeteners, and herbal blends, appealing to eco-conscious consumers and expanding the ready-to-drink (RTD) tea market share for sustainable and ethically sourced ready-to-drink tea.
By Type
The Black Tea segment held the major share of 45.9% in 2019
Industry Highlights
Ready-to-drink (RTD) tea market demand faces strong competition from functional drinks, sparkling water, and other beverages that target health-conscious consumers.
Smaller brands have introduced organic, plant-based, and innovative flavors, expanding product diversity in the ready-to-drink (RTD) tea market.
Energy drinks and bottled coffee challenges ready-to-drink tea, especially among younger consumers seeking quick caffeine and energy boosts.
Regional tea blends and local flavor innovations have attracted loyal consumers, driving global expansion of ready-to-drink (RTD) tea market products.
The ready-to-drink (RTD) tea market size has demonstrated significant growth, driven by a rise in consumer preference for healthier beverage options. Competition from functional drinks and sparkling water poses challenges as these alternatives attract health-conscious consumers. In addition, the emergence of smaller brands offering organic and innovative flavors has diversified the market, catering to various taste preferences. Energy drinks and bottled coffee have also created competition, particularly among younger consumers seeking quick caffeine fixes. However, RTD tea has focused on the trend toward regional flavors and local blends, fostering consumer loyalty and expanding its global reach. The incorporation of health benefits, such as antioxidants and adaptogens, has further enhanced the appeal of ready-to-drink tea. As the market continues to evolve, brands are increasingly focusing on sustainability and clean-label ingredients to meet the growing demand for transparency and quality in food and beverage products.
By Category
The organic segment witness a CAGR of 6.7% from 2021-2027
Key Areas Covered in the Report
The integration of smart packaging technology enhances consumer experience by providing freshness indicators and nutritional information.
Celebrity endorsements and collaborations with renowned chefs create exclusive RTD tea flavors, generating excitement and consumer interest.
Subscription services offering curated selections of RTD teas cater to the demand for convenience and personalized consumer experiences.
The growing emphasis on ethical sourcing and transparency influences consumer choices, leading brands to adopt sustainable practices and fair-trade ingredients.
The ready-to-drink (RTD) tea market faces competition from diverse beverage categories, such as cold-brew coffee, flavored seltzers, and herbal infusions. The increasing consumer focus on hydration has led to a surge in demand for refreshing, flavorful tea options that offer functional benefits without added sugars. Innovative marketing strategies, including interactive tasting events and immersive brand experiences, attract consumers seeking authentic connections with their beverage choices. In addition, advancements in beverage technology allow for better flavor extraction and preservation as it helps enhance product quality. The expansion of international flavors, such as matcha and bubble tea, appeals to adventurous consumers looking for unique taste experiences. Moreover, collaborations with fitness brands and wellness retreats further position ready-to-drink tea as an essential component of a healthy lifestyle, creating new channels for distribution and consumer engagement. Furthermore, the rise of plant-based diets has boosted interest in ready-to-drink teas made with herbal blends and natural ingredients, driving growth in niche markets during the ready-to-drink (RTD) tea market forecast period.
By Distribution Channel
The Supermarkets/Hypermarkets segment helds the higest market share of 38.19% in 2019
Topics discussed in the report
Antioxidant-rich beverage options
Low-calorie tea alternatives
Exotic herbal infusions gaining popularity
Ready-to-drink matcha offerings
Innovative flavor combinations emerging
Functional beverages for wellness
Smart packaging technologies in use
Segment Overview
According to the ready-to-drink (RTD) tea market analysis, the market is segmented into type, category, distribution channel, and region. By type, the market is categorized into green tea, black tea, and others. Depending on the category, it is bifurcated into organic and conventional. On the basis of distribution channel, it is segregated into supermarkets/hypermarkets, specialty stores, online stores, and others. Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, the UK, Spain, the Italy, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Indonesia, Pakistan, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, United Arab Emirates, Nigeria, Turkey, South Africa, and rest of LAMEA).
Local retailers, including grocery stores, convenience stores, and specialty beverage shops, serve as primary physical locations for purchasing ready-to-drink (RTD) tea, demanding a significant market share. These outlets typically offer a wide range of ready-to-drink tea options, from traditional iced teas to innovative flavored varieties infused with functional ingredients. Consumers often seek these products for their convenience and refreshing taste, making ready-to-drink tea a popular choice for on-the-go hydration. Products are commonly sold in single-serve bottles or cans, with many brands offering multi-packs for added value. Seasonal and limited-edition flavors are frequently introduced to attract consumer interest and drive sales, while premium lines featuring organic or artisanal ingredients cater to health-conscious shoppers. This dynamic market continues to evolve as brands experiment with flavors and packaging to engage a diverse consumer base.
Comparative Matrix of Key Segments
Key Parameters | Green Tea | Black Tea | Others |
Market Share | Growing rapidly, driven by health-conscious consumers | High market share, widely recognized | Niche but increasing in popularity |
Distribution Channels | Widely available in health food stores, supermarkets, and online platforms | Primarily found in supermarkets, convenience stores, and cafes | Available in specialty tea shops, health stores, and online retailers |
Challenges | High competition from flavored teas and coffee-based drinks | Growing health awareness leads to reduced sugar preferences | Limited consumer awareness and acceptance compared to traditional teas |
Key Players | Ito En, Harney & Sons, Lipton, Honest Tea, Nestea | Tetley, Twinings, Pure Leaf, Bigelow, Yorkshire Tea | Tazo, Stash Tea, Yogi Tea, Celestial Seasonings, Rishi Tea |
Regional Dynamics and Competition
North America exhibits high demand for ready-to-drink (RTD) tea owing to a growing health-conscious consumer base that prioritizes convenient and functional beverages. Consumers increasingly seek alternatives to sugary sodas and energy drinks, favoring ready-to-drink tea for its perceived health benefits, such as antioxidants and hydration. The variety of flavors, including herbal and fruit-infused options, further appeals to diverse taste preferences. In addition, strong marketing efforts and innovative packaging have enhanced the visibility and accessibility of ready-to-drink tea products in retail channels across North America. However, the Asia-Pacific region is anticipated to experience rapid growth in the ready-to-drink tea industry, driven by a cultural inclination toward tea consumption and evolving consumer lifestyles. With increase in urbanization, busy consumers seek convenient beverage options that fit their fast-paced lives. The rise of innovative flavors and functional ingredients also caters to health-conscious individuals. Moreover, the influence of traditional tea practices along with modern marketing strategies has successfully attracted younger consumers, leading to a surge in demand for ready-to-drink tea across various countries in the region.
By Region
The North America region helds the higest market share of 39.73% in 2019
Some of the major players analyzed in this report are Suntory Holdings, Nestle S.A, Unilever NV, The Coca Cola Company, Starbucks Corporation, The Republic of Tea, Tata Global Beverages, Danone S.A., Snapple Beverage Corp. (Keurig Dr Pepper), and Harney & Sons Fine Teas.
Ready-to-drink (RTD) Tea Market News Release
In December 2023, Carrefour entered an agreement to acquire the Cora and Match banners in France, strengthening its food retail market position to expand its market share and presence in the French retail sector.
In November 2023, The Coca-Cola Company expanded its business by introduction of ChaiChun teas at its new store, The ChaiChun Store, in Delhi to expand its footprint in the Indian tea market.
In January 2023, Milo's tea company invested $130 million to build a new plant and distribution center in Spartanburg County, South Carolina to support its expanding production and meet increased demand for its tea and lemonade products.
Key Benefits for Stakeholders
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the ready-to-drink (RTD) tea market analysis from 2022 to 2032 to identify the prevailing ready-to-drink (RTD) tea market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the ready-to-drink (RTD) tea market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global ready-to-drink (RTD) tea market trends, key players, market segments, application areas, and market growth strategies.
Ready-to-drink (RTD) Tea Market Report Highlights
| Aspects | Details |
 By Type |
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 By Category |
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 By Distribution Channel |
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 By Region |
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 Key Market Players | HARNEY & SONS FINE TEAS, THE COCA-COLA COMPANY, UNILEVER PLC, DANONE, THE REPUBLIC OF TEA, BEAM SUNTORY, INC., NESTLE S.A., TATA CONSUMER PRODUCTS LIMITED, STARBUCKS CORPORATION, SNAPPLE BEVERAGE CORP. |
Analyst Review
Various CXOs from leading companies perceive that health, fitness, and habit are three important factors that determine the growth of the ready-to-drink tea market. At present, consumers’ interest is shifting toward green tea & fruit/herbal tea, owing to the presence of diverse nutrients and numerous health benefits offered by it. The various nutrients present in RTD tea include different types of vitamins, amino acids, flavonoids, and trace minerals leading to stronger immunity, improved metabolism, lower cholesterol, cancer prevention, and other health benefits.
Thus, new launches of specialty tea products such as RTD herbal/fruit tea, different types of ready-to-drink green tea, and the ones consisting of the black & green leaves combination have are anticipated to offer potential growth opportunities for the global market growth during the forecast period.
The Ready-to-drink (RTD) Tea Market Size From 2021 to 2027 is $10.72 billion.
The CAGR of Ready-to-drink (RTD) Tea Market is 5.5%.
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The segments of Ready-to-drink (RTD) Tea Market are types, category and distribution channel.
Growth in RTD coffee consumption is the most effecting factors in the Ready-to-drink (RTD) Tea Market.
The forecast period in the market report is from 2021 to 2027.
Health benefits associated with tea, rising per capita income and the middle class, and rise in awareness among people for losing weight are the key trends in the Ready-to-drink (RTD) Tea Market report.
Introduction of new flavors and expanding of retail market are the current trends which is likely to shape the market in future.
The active players in the Ready-to-drink (RTD) Tea Market are Suntory Holdings, Nestle S.A, Unilever NV, The Coca Cola Company, Starbucks Corporation, The Republic of Tea, Tata Global Beverages, Danone S.A., Snapple Beverage Corp.( Keurig Dr Pepper), and Harney & Sons Fine Teas.
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