The global ready to drink (RTD) tea and coffee market is expected to reach U.S. $116.13 billion by 2024, according to a new report by Grand View Research Inc. (grandviewresearch.com). RTD tea and coffee are a part of the growing trend in the soft drinks industry. These drinks are not only perceived as instant energy drinks but also form a part of lifestyles in major countries around the world. The enhanced nutritional benefits and compatibility with different flavors is driving the demand for these products.
The major factor promoting the ready to drink tea and coffee market is the rising health awareness and disposable incomes of the population. The growing consumption of on-the-go health drinks has largely impacted the demand for these products. The changing retail scenario and rise of e-commerce as the new distribution channel is expected to boost the market demand for these products over the forecast period. The growing café culture and the changing habits related to tastes and flavors have fueled the market demand for these products.
Foodservice segment is expected to be the fastest-growing distribution channel at a CAGR of 6.5% from 2016 to 2024. Rising trend of restaurant dining coupled with the popularity of cafes and snack parlors is expected to drive market demand. High availability of the product in remote areas is expected to propel market growth over the forecast period.
RTD tea is the dominant product segment with a demand of over $84 billion by 2024. The enhanced health benefits coupled with increased demand for flavored ice teas are expected to drive market growth.
Regular price segment products are expected to experience high demand owing to various flavors and economical pricing of the product. The global market value for regular price segment in 2015 was over $27 Billion.
MEA is expected to be the fastest growing regional segment with a CAGR of 7.5% from 2016 to 2024. The rising café culture in the Middle East owing to high young age population is driving the demand. The high number of coffee plantations in the Africa is expected to drive market growth on account of easy raw material availability.
The industry is characterized by new product development and introduction of new flavors. The launch of novel products, such as mango-flavored green tea, is expected to drive the industry over the forecast period.