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Ready to Drink (RTD) Tea and Coffee Market size was over USD 114.75 billion in 2024 and is projected to reach USD 253.91 billion by 2037, growing at around 6.3% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of ready to drink tea and coffee is evaluated at USD 120.89 billion.
The growth of the market can be ascribed to the growing awareness regarding the health hazards of carbonated drinks and the changing dietary preferences of individuals worldwide. The soft drink consumption in the U.S. has declined by more than 20% owing to the rising consciousness of people to consume health beneficial products. Furthermore, increasing disposable income in developed economies is another factor estimated to fuel the market growth. Along with these, creative branding and marketing strategies of food and beverage companies are also evaluated to offer opportunities for the progress of the market.
Growth Drivers
Rising Health Consciousness among Consumers
Changing Dietary Preferences
Growth of Beverage and Food Industry
Challenges
Higher Production Cost of RTD beverages than Tea Leaves and Ground Coffee
Fluctuating Cost of Raw Materials
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.3% |
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Base Year Market Size (2024) |
USD 114.75 billion |
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Forecast Year Market Size (2037) |
USD 253.91 billion |
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Regional Scope |
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The ready to drink (RTD) tea and coffee market is segmented by packaging into glass bottle, PET bottle, canned and others, out of which, the PET bottle segment is anticipated to hold the largest share in the market by the end of 2029 on account of the low production cost and ease of handling of these bottles. As PET containers are recyclable, these tend to be in high demand amongst the beverage manufacturers in the beverage packaging industry. On the other hand, the glass bottle segment is also expected to grow with a noteworthy CAGR as a result of its reusability and for having a high recycling rate. Additionally, on the basis of distribution channel, the market is segmented into off-trade and on-trade. The off-trade segment is further divided into supermarkets, independent retailers, convenience stores, and others, out of which, the supermarkets section grabs the largest revenue in the market, primarily on account of the rise in the number of supermarket chains. In 2019, about 40,000 supermarket stores existed in United States, up from approximately 35,000 in 2010.
Our in-depth analysis of the global market includes the following segments:
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Product |
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Packaging |
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Distribution Channel |
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Additives |
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Asia Pacific industry is estimated to hold largest revenue share by 2037, driven by growing demand for RTD products as a result of rising health awareness of the people, and booming landscape of retail food chains in the region. namely in countries such as Japan, India and China. Another crucial factor boosting industry growth is the large number of coffee and tea plantations, and the growing production of tea in several countries in the region. During the financial year 2019-2020, the production of tea in India crossed 1300 M.Kgs. Furthermore, the market in North America is estimated to hold a significant revenue in 2021 accounting to the presence of leading market players of the beverage industry, especially in nations, such as, the U.S.A and Canada.
Author Credits: Parul Atri
Copyright © 2025 Research Nester. All Rights Reserved
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