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According to Stratistics MRC, the Global Ready to Drink Beverages Market is accounted for $96.12 billion in 2022 and is expected to reach $152.53 billion by 2028 growing at a CAGR of 8.0% during the forecast period. Ready-to-drink (RTD) beverages are packaged, prepared, and ready for human consumption. After being packaged, the product needs no further processing and is ready for consumption right away. The increased popularity of RTD beverages and other ready-to-drink (RTD) goods has caused manufacturers to capitalize on shifting consumer consumption trends.
According to the Food Editorial, with over 2.25 billion cups of coffee are being consumed on an average each day. Coffee is the most widely consumed beverage on the planet and is even more popular than tea. Europe has the largest number of coffee drinkers. It represents nearly 30.5% of the global coffee market.
Market Dynamics:
Driver:
Diverse range of product offerings in RTD segment
The vast range of popular and liked flavors given by companies can also be credited to the RTD beverages market's growth potential. The demand for flavors in various products has risen quickly and is now rising at a significant rate as more customers experiment with food and beverages as well as novel tastes and flavors. Additionally, a variety of beverages are offered in RTD products, satisfying the demands, preferences, and regional preferences of customers from diverse locations. And the unusual flavors to manufacturers' product lineups will also be one of their main techniques for grabbing consumers' attention.
Restraint:
Health problems
Soft drinks containing artificial sweeteners, when consumed in excess, can cause health concerns such as insulin resistance, renal problems, dental decay, and obesity; consequently, consumers should limit their use of such drinks. Also, excessive caffeine in various nutritional and performance drinks leads to uneven heart rate, dehydration, restlessness, and others. These factors may impede the growth of the global ready-to-drink (RTD) beverage market.
Opportunity:
Increasing prevalence of serving ready-to-drink beverages
The rising popularity of ready-to-drink (RTD) beverages as a side drink at various fast food restaurants and cafes is also boosting global market expansion. Another driver boosting growth in the global ready-to-drink (RTD) beverage market is rising consumer demand for low sugar and diet ready-to-drink (RTD) drinks as a result of rising adoption of a healthy lifestyle.
Threat:
Reduced natural properties and cost fluctuations of raw materials
RTD beverages are functional and processed drinks that lose some of their nutritional value in the production process. Due to health concerns, a number of customers favor fresh and natural beverages, which is anticipated to hinder the growth of the global RTD beverage market.
Covid-19 Impact
During the COVID-19 pandemic, demand for ready-to-drink beverages skyrocketed, owing to consumers' proclivity to stockpile. Additionally, because of the culture of working from home during the lockdown, the demand for ready-to-drink (RTD) rose quickly. Increased consumer awareness and consciousness following and during COVID-19 led to a move to more immunity-boosting RTD drinks. To meet the growing consumer demand, the players developed and introduced immunity-boosting beverages in a variety of tastes.
The flavored milk segment is expected to be the largest during the forecast period
The flavored milk segment is estimated to have a lucrative growth, due to the different available flavors. The goods are becoming more and more popular with customers of all ages, which has led to a general increase in the use of flavored milk.
The supermarkets/hypermarkets segment is expected to have the highest CAGR during the forecast period
The supermarkets/hypermarkets segment is anticipated to witness the fastest CAGR growth during the forecast period, due to huge consumer dependency for the purchase of grocery products is expected to contribute significantly to the growth of RTD beverages. Also, supermarkets are known for their overwhelming sale deals and discount offers that act as a potent trigger in luring customers.
Region with highest share:
North America is projected to hold the largest market share during the forecast period owing to the factors such as high gym memberships because of high health attentiveness among people, quality lifestyles of people, presence of leading companies like PepsiCo and Coca-Cola, top-notch retail network, sport-loving culture, ease to market and advertise such products because of 24/7 high-speed internet and high urban population. Consumers in the region are shifting to fortified water due to more awareness and understanding of the bad effects of carbonated drinks.
Region with highest CAGR:
Asia-Pacific is projected to have the highest CAGR over the forecast period, owing to the growing fitness and sports industry, humongous population, improving per capita owing to rising economic affluence and investments by local players to refine existing infrastructure. The demand for RTD beverages in the region is being driven by factors including rising disposable income and shifting consumer lifestyles. One of the major markets for RTD beverages in the region is the emerging economies, including China and India.
Key players in the market
Some of the key players profiled in the Ready to Drink Beverages Market include PepsiCo Inc, The Coca-Cola Company, Britvic PLC, Bickford's Australia, National Beverage Corp, Laihian Mallas, Parle Agro Pvt. Ltd, F&N Foods Pte Ltd, Asahi Group Holdings, Ltd, Tru Blu Beverages, Suntory Beverage & Food Limited, Nestlé S.A., Tata Global Beverages Limited, Starbucks Corporation, REBBL Inc
Key Developments:
In February 2022, PepsiCo’s Rockstar Energy brand unveiled an energy drink infused with hemp seed oil as well as B vitamins, spearmint and lemon balm. The beverages have 80 milligrams of caffeine. The hemp-infused drink is sugar- and calorie-free and will be sold in three flavours – blueberry, passionfruit and raspberry cucumber.
In November 2021, “Coca-Cola” a renowned beverage manufacturing company based in Georgia, United States announced the complete acquisition of Queens, New York-based sports drink firm Bodyarmor SuperDrink 18 percent ownership of which had already been bought by Coca-Cola back in 2018. The total value of the transaction stands at around $5.6 billion.
In August 2021, REBBL, launched REBBL POP and REBBL Stacked Coffee, plant-based, organic drinks. REBBL POP are available in Root Beer, Mandarin Orange, Blackberry, and Ginger Lime flavour. They are certified organic, non-GMO, vegan, gluten-free, and made without cane sugar. While REBBL Stacked Coffee comes in Cafe Mocha, Vanilla Latte, Hazelnut Latte, and Straight Black flavour. Stacked Coffee comes in sustainable 100% recycled and recyclable plastic bottles.
In August 2021, Vevey, Switzerland-based conglomerate “Nestle” announced the successful acquisition of New York, United States-based firm “The Bountiful Company.” The total value of the acquisition stands around $5.75 billion which is nearly 3 times more than the actual value of Bountiful.
In May 2021, Honest Tea, a wholly-owned subsidiary of The Coca-Cola Company, expanded its bottled beverages portfolio with the launch of Honest Yerba Mate.
Product Types Covered:
• Coffee
• Energy Drinks
• Flavored Milk
• Tea
• Fortified Water
• Fruits & Vegetable-based Drinks
• Yogurt Drinks
• Other Product Types
Natures Covered:
• Conventional
• Organic
Packagings Covered:
• Bottle
• Tin Can
• Sachet
• Tetra Pack
• Other Packagings
Distribution Channel Covered:
• Supermarkets/Hypermarkets
• Specialty Stores
• Grocery Stores
• Convenience Stores
• Online retail
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
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