PUBLISHER: Grand View Research | PRODUCT CODE: 1321490
PUBLISHER: Grand View Research | PRODUCT CODE: 1321490
The global ready to drink tea and coffee market size is expected to reach USD 167.89 billion by 2030, growing at a CAGR of 6.2% during the forecast period, according to a new report by Grand View Research, Inc. The growing acceptance of ready-to-drink (RTD) tea and coffee products as healthier alternatives to carbonated soft drinks, as well as their ability to provide instant energy, is expected to be a significant driver for the market's growth. The introduction of new flavors in this product category is projected to tremendously boost its overall market growth.
Manufacturers are launching new flavors in the market. For instance, in January 2023, Nguyen Coffee Supply expanded its Vietnamese Coffee Line by launching two RTD cold brew products. The new offerings include coconut and condensed milk flavors. The products are made using 100% robusta beans sourced from Vietnam and manufactured in the U.S. The increasing focus on health and wellness has influenced the market for RTD tea and coffee. Consumers are looking for beverages that offer functional benefits, such as antioxidants, natural ingredients, or specific health claims.
The inclusion of ingredients such as herbal extracts, green tea, or specialty coffee varieties taps into these trends. The demand for natural and clean label products has grown significantly. Consumers are increasingly looking for RTD tea and coffee options made with natural ingredients and free from artificial additives, preservatives, or excessive sweeteners. Clean label products that have a transparent and simplified ingredient list resonate well with health-conscious consumers.
Health-conscious consumers often seek beverages with reduced sugar content. RTD tea and coffee brands have responded to this trend by offering options with low or no-added sugars, utilizing natural sweeteners, or employing alternative sweetening solutions like stevia or monk fruit extract. For instance, in March 2022, Swoon, a U.S.-based brand, introduced a no-sugar RTD tea product called Sweet Tea.The RTD tea is made with steeped black tea and sweetened with naturally sugar-free monk fruit. The RTD tea and coffee market is consolidated in nature with the presence of several international players and a few regional players.