LONDON--(BUSINESS WIRE)--According to the latest market research report by Technavio, the global ready to drink (RTD) tea and coffee market is expected to reach 49.78 billion liters in terms of consumption in 2019.
In this report, Technavio covers the present scenario and growth prospects of the global RTD tea and coffee market for 2015-2019. In terms of distribution channel, the report considers the following segments to calculate the market size:
- On-trade (bars, restaurants, coffee shops, clubs, and hotels)
- Off-trade (hypermarkets, supermarkets, convenience stores, vending machines, mini market, and kiosks)
“The global RTD tea market segment is experiencing many new innovations, with the most prominent being matcha-based RTD tea. Matcha, a special form of powdered green tea is rich in antioxidants, and offer health benefits ranging from prevention of heart diseases and cancer to regulation of blood pressure and blood sugar levels,” said Arushi Thakur, one of Technavio’s lead industry analysts for the non-alcoholic beverages market.
“Presently, the market is witnessing many distribution related alliances being forged between the leading market vendors. These alliances are predicted to result in a significant increase in product visibility and customer reach. In March 2015, Starbucks and Tingyi entered into an agreement for distributing Starbucks' RTD products in China. Similarly, PepsiCo and Unilever have also got into an alliance to distribute Unilever's brand of Lipton Tea in markets including Brazil, Spain, Russia, Poland, Thailand, Malaysia, Australia, Egypt, and Saudi Arabia,” added Arushi.
Global RTD tea and coffee market by geography (revenue) 2014
Source: Technavio research
APAC: largest region for the global RTD tea and coffee market
Technavio researchers expect the market in APAC to grow steadily during the forecast period. RTD tea dominates the region in terms of value as well as volume, and it has led to café chains like Starbucks and Costa Coffee foraying into this region for capitalizing on the growing trend.
In 2014, Japan dominated the APAC market with close to 54% share. China followed with a market share of over 28% during the same period. Market trends indicate a growing shift from hot tea to iced tea to have gained prominence in the APAC market and is likely to have a significant impact on RTD tea sales in the region over the next four years.
The introduction of new product ranges in China will also have a positive impact on the market during the forecast period. To leverage the opportunity, most leading vendors have upgraded their existing ranges with innovative and premium beverages in unique flavors. Some examples include Citea Matcha Milk Tea by President Enterprises, Dai Nai Cha by Nongfu Springs, and Gold Pu'er by Shanghai Tenwow Food Co Ltd.
Americas: second largest region for the global RTD tea and coffee market
Despite the high sugar content in many RTD teas, consumers in the US still perceive it to be healthier and lower in calories than carbonated drinks. The availability of different varieties such as lemonade and juice blends further adds to the appeal of RTD tea in the country.
The region is also witnessing a growing consumer affinity toward sweet iced coffee which has outpaced the sales of bitter, hot-brewed coffee. This category witnessed a growth rate of around 10% in off-trade sales in 2014. During the same period, Starbucks rolled out a new line of cold coffees under the brand name Starbucks Iced Coffee to leverage the growing demand. Similarly, Blue Bottle launched Blue Bottle New Orleans Iced coffee in milk cartons. Cafés in the US, like Peixoto Chandler, have introduced "coffee happy hours", for attracting consumers to taste their coffee cocktails. These trends are predicted to further stimulate the sales of ready to drink tea and coffee during the forecast period.
Global RTD tea and coffee market in Europe
This market research study anticipates the RTD tea and coffee market in Europe to witness a steady growth rate during the forecast period. RTD coffee is the most preferred beverage in Central Europe, while RTD tea is more preferred in parts of Russia.
The UK is another big market for RTD tea and coffee in Europe. With consumers in this region opting for healthier beverage options, this market presents an attractive opportunity for the leading market vendors for launching new flavors during the forecast period.
Browse related reports:
- Hot Drinks Market in APAC 2015-2019
- Green Tea Market: Vendor Landscape, Strategies, and Forecast 2015-2019
- Coffee Market in Brazil 2015-2019
- Global Instant Coffee Market 2015-2019
- Hot Drinks Market in the US 2015-2019
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