The global market for Ready to Drink tea and coffee in terms of revenue was estimated to be worth around $69 billion in 2011 and is expected to reach $125 billion by 2017, growing at an estimated CAGR of 10.9% from 2012 to 2017.
Asia-Pacific is the largest market. The demand for RTD tea and coffee market is expected to rise in North America due to an increase in health awareness and ill effects of the carbonated drinks, according to he report “Ready to Drink Tea Market & Ready to Drink Coffee Market ” published by MarketsandMarkets.
RTD tea and coffee are widely gaining popularity due to fast and busy lifestyle, and as a substitute to carbonated drinks. RTD tea is especially looked by the consumers in orient as a health drink. RTD coffee is perceived as an instant energy source and it makes the consumer more alert.
Wider awareness about the health benefits of drinking tea like antioxidant properties, rising population with busy lifestyles, and increase in disposable income is making consumers opt for RTD tea and coffee.
The ill effects of carbonated drinks are another factor responsible for the shift in demand towards the RTD tea and coffee products. The winning imperative of the industry is the distribution alliances which is beneficial not only in tapping the untapped market but also to increase visibility of the product.
The age old habit of drinking hot tea and coffee, and higher prices of RTD tea and coffee are the restraining factors.
To capitalize on the growth trend in the global Ready to Drink tea and Ready to Drink coffee market, several leading companies are rushing in to the development and manufacturing. Growing demand is forcing the global soft drinks manufacturers to add RTD tea and coffee to their product line.
We have also profiled leading players of this industry with their recent developments and other strategic industry activities. These include: PepsiCo Inc. (U.S.), The Coca-Cola Company (U.S.), Suntory Holdings Ltd (Japan), Nestle S.A. (Switzerland), Ting Hsin International Group (China), Sapparo Beverage Co. Ltd (Japan).
