Global industry for soft drinks is witnessing great transition for the past several years. Amongst different segments of the market, ready to drink tea and coffee markets are some of the fastest growing sections of the industry. Ready to drink packaged beverages or (RTD) are sold in prepared formulations, which makes them ready for consumption at the convenience of the customers. These drinks differ from the conventional iced tea and alcopops that are needed to be mixed with the suitable juices or alcoholic beverages. Within the RTD industry, specialty teas like herbal teas and chai have created greater business prospects for hot tea market. Rapidly changing lifestyle, convenience about usage and costs along with organic offerings are some major drivers for the global industry for ready to drink tea.
Market Trends for RTD Tea Market
Although similar to other conventional soft drinks, ready to drink teas differ both in function and health benefits. As a result, ready to drink tea market has gained exponential growth within past few years. Wide range of RTD coffees and teas have created distinct marketplace in terms of demand and revenue across different geographic regions of the world. Growth in the number of health conscious customers and increasing popularity amongst young adults are also considered as the major drivers for the industry. Customers from across the globe are gaining awareness about hazards of carbonated drinks and aerated soft drinks. As a result, most of the customers are looking to make solid shift towards ready to drink options like tea and coffee. Changing lifestyles within developing regions also have positive influence on the global industry.
Scope, Segments and Forecasting
With increasing demand for these products, leading companies are rushing in to the market with aims for manufacturing and development. Many existing soft drink manufacturers are launching their special product line of ready to drink tea and coffee products. Global ready to drink market is segmented on the basis of the types of drinks, additives, packaging, pricing distribution channels and geographic demands. Ready to drink coffee and tea are the two basic types of drinks, available in glass bottles, cans, pet bottles, aseptic or fountains and other packaging types. Additives segment is categorized on the basis of different flavors, acidulants, preservatives, artificial sweeteners, nutraceuticals and others. These drinks are available at different price segments, including premium, super premium, fountain, popular prices and regular.
Distribution channels in ready to drink tea market are divided into on trade and off trade channels. These channels include vendors, direct sales, independent retailers, convenience stores and other channels. Geographically, the industry is segmented into Asia pacific, North America, Europe and rest of the world. According to the market research reports, ready to drink tea market is poised to witness steady growth in terms of revenue, trends and adoption rate. Based on the latest research, the industry is expected to grow at a steady CAGR of over 10% from 2013 and become worth $125 billion by 2017. Apart from dramatic rise in demand from developing regions like Asia Pacific, Middle East and Africa and Latin America, the market is also anticipating strong demand from European and North American markets.