Medical Devices MLCC - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

RTD Tea - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)

The RTD Tea Market size is estimated at 70.74 billion USD in 2024, and is expected to reach 107.7 billion USD by 2030, growing at a CAGR of 7.25% during the forecast period (2024-2030).

RTD Tea is majorly driven by health and wellness along with convenience in on-the-go lifestyles

• Global RTD Tea has experienced significant growth in recent years driven by health-conscious trends and convenience in beverage choices. The market dynamics have been shaped not only by traditional tea-drinking cultures in countries like China, India, and Japan but also by the globalization of tastes. Green tea accounted for a significant share compared to all other RTD tea types. The market for green tea registered a CAGR of 6.07% from 2018 to 2023. The major factor driving the growth of RTD tea is growing consumers' inclination toward healthy beverage products. In 2022, around 50% of consumers across the world preferred green tea over other tea types.
• Iced tea is the second-leading RTD tea type globally. This is attributed to increased consumption of iced tea across the regions. For instance, around 75 - 80% of tea consumed in the United States was iced as of 2022. Iced tea offers a diverse range of flavors to cater to varying taste preferences. With the growing health-conscious and diabetic population, companies are expected to use healthier sugar substitutes, such as stevia, coconut sugar, and organic honey, to add sweetness to the iced teas. Brands are expected to use healthier sugar substitutes, such as stevia, coconut sugar, and organic honey, to add sweetness to the iced teas in the future.
• Herbal tea is projected to register the fastest CAGR value of 7.81% between 2024 and 2030. Herbal tea, in combination with antioxidants that help to boost the immune system, contains essential nutrients such as calcium, magnesium, potassium, and vitamin C. Products with immunity-boosting properties are becoming increasingly popular globally. This factor will further aid the market in the future.

Rising obesity concerns and preferences for healthy drinks are increasing sales

• From 2021 to 2023, the global sales of RTD teas witnessed a 13.35% surge in value. North America emerged as a key market with a notable 8.81% increase. This rise can be attributed to a growing preference among health-conscious consumers for RTD teas with lower sugar content and natural sweeteners, like antioxidants. The United States, grappling with a high obesity rate, saw a shift in consumer preferences toward sugar-free or low-calorie beverages, including RTD teas. Around 100.1 million (41.9%) adults and 14.7 million (19.7%) children are obese in the United States.
• In Europe, RTD tea is gaining popularity due to rising obesity concerns, which is projected to witness a high CAGR value of 9.38% during 2024-2030. Countries like Germany have a higher obesity rate, which has led consumers to be inclined toward sugar-less or low-calorie beverages, including RTD teas. In Germany, 53.5% of the population (46.6% of women and 60.5% of men) was overweight as of 2022. Thus, many consumers are turning to RTD tea as an alternative to sugary sodas and other less healthy beverages.
• Asia-Pacific dominated the RTD tea market, witnessing a significant 14.12% surge in value from 2021 to 2023. In Japan, where tea is a cultural staple, RTD green teas are particularly popular. Key players in the market, such as Ito En Ltd and Kirin Beverage Company, Limited, emphasize preserving the traditional taste while offering modern packaging and convenience. The number of tea drinks circulating in the Japanese market reached almost 700 in 2022, with more than 100 variations introduced annually. RTD tea beverages, offering the convenience of traditional flavors without the preparation time, are widely consumed.

Global RTD Tea Market Trends

RTD Tea is majorly driven by health and wellness along with convenience in on-the-go lifestyles across regions

• Around 600,000 tons of green tea are consumed globally each year, which is about one-fifth of all tea consumed. Furthermore, other functional teas will continue to advance the RTD tea sector, supported by trends prioritizing health and wellness.
• The popularity of organic label and herbal teas are on the rise globally owing to increasing popularity. This can be attributed to their health benefits and enhanced benefits of ingredients such as basil, tulsi, etc., shifting consumer preferences toward natural ingredients-based products.
• The average price range of RTD tea market ranges between USD 2.50 to 4.50 in the united states. Among variants, lemon and raspberry as the most popular RTD tea drinks variants. These were priced 12.22% higher than the average price of a RTD tea drinks.
• Growing awareness about the benefits of drinking tea for patients with arthritis, cardiovascular diseases, obesity, overweight, and high blood pressure will drive market growth and expansion in the coming years.

RTD Tea Industry Overview

The RTD Tea Market is fragmented, with the top five companies occupying 36.84%. The major players in this market are PepsiCo, Inc., Suntory Holdings Limited, The Coca-Cola Company, Tingyi (Cayman Islands) Holding Corporation and Uni-President Enterprises Corp. (sorted alphabetically).

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