Global Carbonated Ready-to-Drink Tea Market - 2023-2030

Global Carbonated Ready-to-Drink Tea Market - 2023-2030

The Global Carbonated Ready to Drink Tea market reached US$ 5.1 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 8.8 billion by 2030. The market is growing at a CAGR of 7.2% during the forecast period 2023-2030. There is a growing demand for tea-based beverages. For instance, about 6.3 billion kilograms of tea were consumed globally in 2020. These tea beverages offering functional benefits such as antioxidants, natural ingredients, and low sugar content drive the growth of carbonated ready-to-drink tea.

Flavor innovation is a significant trend in the carbonated ready-to-drink tea market. Manufacturers are introducing various unique and exotic flavors to attract consumers. Beyond traditional tea flavors, consumers are seeking more diverse and adventurous taste experiences. This trend is driving the introduction of flavors like fruit-infused teas, botanical blends, and even fusion flavors that combine tea with other popular beverage flavors.

There is a growing demand for premium and high-quality carbonated ready-to-drink teas. Consumers are willing to pay a premium for products with unique ingredients, sophisticated packaging, and a premium brand image. This trend has led to the introduction of upscale and artisanal carbonated ready-to-drink teas that cater to consumers looking for a more elevated and indulgent beverage experience.

Market Dynamics

Increasing Awareness of Tea Health Benefits is Driving the Market Growth of Carbonated Ready-to-Drink Tea

With a growing emphasis on health and wellness, consumers are seeking healthier beverage options. Tea, known for its natural antioxidants and potential health benefits, has gained popularity as a healthier alternative to sugary carbonated soft drinks. For instance, according to The Tea Association of The USA, More than 3.9 billion gallons, or about 85 billion servings, of tea were drunk by Americans in 2021.

Carbonated ready-to-drink tea offers the refreshing qualities of carbonation while leveraging the perceived health benefits of tea. Many carbonated ready-to-drink teas incorporate functional ingredients, such as herbal extracts, vitamins, or superfoods, enhancing their health appeal. These ingredients are often selected for their potential to provide specific health benefits, such as boosting energy, improving digestion, supporting immune function, or promoting relaxation.

Rising Disposable Income and Urbanization are Driving the Market Growth of the Carbonated Ready to Drink Tea Market

Rising disposable income among consumers increases spending on non-essential products such as carbonated ready-to-drink teas. As people have more discretionary income, they are willing to explore and purchase premium and higher-priced beverages, including carbonated tea options. This drives the growth of the market by expanding the consumer base and creating opportunities for premium offerings.

Urbanization brings changes in lifestyle and consumption patterns. In urban areas, people often have busier schedules, limited time for meal preparation, and a preference for convenient and on-the-go options. Carbonated ready-to-drink teas provide a convenient and refreshing beverage choice that can be easily consumed while commuting or during busy work hours. The urban population's demand for convenient, ready-to-consume beverages contributes to market growth.

Competition From Other Beverage Categories Poses a Restraint on the Market Growth of Carbonated Ready-to-Drink Tea

Carbonated ready-to-drink tea faces competition from traditional carbonated soft drinks, such as cola, lemon-lime sodas, and other carbonated beverages. For instance, according to Statista, The total volume of carbonated soft drinks (CSD) sales across all U.S. channels in 2021 was 7.56 billion 192-oz cases.

These tea beverages have a long-standing presence in the market and enjoy a strong consumer base. The popularity and brand loyalty associated with carbonated soft drinks can make it challenging for carbonated ready-to-drink teas to gain market share.

Ready-to-drink coffee and cold brew beverages also have seen a surge in demand, driven by the popularity of coffee culture and the convenience they offer. For instance, according to Statista, In Brazil, the ready-to-drink (RTD) coffee market recorded a volume of 0.3 million liters in 2022. These beverages provide a different taste experience and cater to consumers seeking caffeinated options. As they compete for shelf space and consumer attention, ready-to-drink coffee and cold brews can constrain the market growth of carbonated ready-to-drink teas.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario, and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it with pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

Segment Analysis

The Global Carbonated Ready-to-Drink Tea Market is segmented based on product type, ingredient, packaging, distribution channel, and region.

Convenience Associated With Plastic Bottles is Expected to Drive the Segment Growth

In 2022, based on packaging, plastic bottles held the highest share of the carbonated ready-to-drink tea market. Plastic bottles are lightweight and easy to carry, making them convenient for on-the-go consumption. Consumers can easily grab a plastic bottle of carbonated ready-to-drink tea and take it with them to work, school, or other activities. The portability factor has contributed to the popularity of plastic bottles in the market.

Plastic bottles offer design flexibility, allowing for various shapes, sizes, and labeling options. Manufacturers can easily customize the appearance of plastic bottles to align with brand identities and consumer preferences. This versatility in design helps to differentiate products on the shelf and attract consumer attention.

Geographical Analysis

Strong Tea Culture in the Asia-Pacific Region

In 2022, the Asia-Pacific region had a significant share of the global carbonated ready to drink Tea market, ea has a long-standing tradition and cultural significance in many Asian countries, including China, Japan, India, and Southeast Asian nations. For instance, During the fiscal year 2022, over 1.2 billion kilograms of tea were consumed in India. Tea is deeply ingrained in the daily lives of people, and there is a strong preference for tea-based beverages. The popularity of tea in the region extends to carbonated ready-to-drink tea, leading to a significant market share.

In recent years, there has been a shift in consumer preferences towards healthier and more convenient beverage options. Ready-to-drink (RTD) tea, with its refreshing qualities and perceived health benefits, aligns with these changing preferences. As consumers in the Asia Pacific region become more health-conscious and seek convenient on-the-go options, the demand for carbonated ready-to-drink tea has grown significantly.

Competitive Landscape

The major global players in the market include Talking Rain, Sunny Delight Beverages Co., TeaZazz, PepsiCo, Suja Juice, Unilever, Coca-Cola, Lactalis, Starbucks and Nestle.

Why Purchase the Report?
• To visualize the Global Carbonated Ready-to-Drink Tea Market segmentation based on product type, ingredient, packaging, and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of carbonated ready-to-drink tea market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Carbonated Ready to Drink Tea Market Report Would Provide Approximately 71 Tables, 66 Figures And 102 Pages.

Target Audience 2023
• Manufacturers / Buyers
• Industry Investors /Investment Bankers
• Research Professionals
• Emerging Companies