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RTD Tea Market Research Report Information By Type (Black Tea, Green Tea, White Tea, and Others), By Category (Organic and Conventional), And By Region (Asia-Pacific, North America, Europe, And Rest Of The World) –Market Forecast Till 2032


ID: MRFR/F-B & N/6458-HCR | 90 Pages | Author: Snehal Singh| July 2024

Global RTD Tea Market Overview 


RTD Tea Market Size was valued at USD 22.49 billion in 2023. The RTD Tea market industry is projected to grow from USD 24.21 Billion in 2024 to USD 40.542 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.65% during the forecast period (2024 - 2032). Increased awareness about the health benefits of the consumption of RTD over carbonated drinks and the increase in innovation to develop new varieties are the key market drivers enhancing the market growth.


RTD Tea Market Overview2


Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review


RTD Tea Market Trends




  • Rising awareness about the health benefits associated with RTD tea is driving market growth




Market CAGR for RTD tea is being driven by the rising awareness about the health benefits associated with RTD tea. The awareness among the consumer is encouraging them to focus on adopting a healthy lifestyle that will eventually contribute to the growth of the ready-to-drink tea market. RTD helps in weight loss, reduces headache & body pain, and decreases cholesterol levels & the risk of heart attacks. An increasing number of consumers are paying attention to the impact of their food choices.


The associated health benefits and the rise in awareness for adopting a healthy lifestyle are anticipated to boost the growth of the market in the coming year worldwide. Moreover, an increase in disposable income, availability of ready-to-drink tea with convenient & attractive packaging, increase in the number of cafes, online & offline retail stores, and food outlets are some other factors expected to enhance the ready-to-drink tea market growth worldwide. The tea package is provided in different flavors by different competitors in the market. Many companies make tea bags (Dip bags) available that are mostly demanded in various developed region. Consumers' knowledge and awareness about the health benefits of tea inspire consumers to focus on living a healthy life. The convenience and flexibility offered by RTD tea are significant drivers for its market. Rising socialization and social gathering of various age groups of people, mainly millennial, has surged the demand and need for easily available and portable ready-to-drink coffee. The easy availability of RTD tea through different mediums is another factor driving the market.


Consumers are demanding more natural products in ready-to-drink beverages than the added antioxidants, vitamins, and minerals in ready-to-drink beverages. Fruit concentrates are provided that give equal health benefits as the ready-to-drink beverage, boosting the growth of the market. Rising awareness about the health hazards of carbonated drinks led to a shift towards ready-to-drink tea and ready-to-drink coffee. The health-conscious population prefers the antioxidant property of RTD tea. The customization of health-beneficial products for women and children is the strategy of the key players to spread in the market. Thus, driving the RTD Tea market revenue.


RTD Tea Market Segment Insights


RTD Tea Type Insights


The RTD Tea market segmentation, based on type, includes Black Tea, Green tea, White Tea, and Others. The black tea segment dominates the RTD tea market due to its popularity as traditional tea throughout the globe and the presence of high concentrations of antioxidants and polyphenols, making it popular among health-conscious consumers. It helps in fighting headaches and cancer and regulating blood pressure, hence boosting the RTD tea market.


RTD Tea Category Insights


The RTD Tea market segmentation, based on distribution category, includes organic and conventional. The conventional tea segment accounted for the largest market share in the RTD tea market owing to the widespread availability of the product globally. However, rising awareness for organic RTD tea and growing investment by the major players in the product launch of organic RTD tea are boosting its growth in the RTD tea market.


Figure 1: RTD Tea Market, by Category, 2022 & 2032 (USD billion)


RTD Tea Market, by Category, 2022 & 2032


Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review


RTD Tea Regional Insights


By region, the study gives market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American weight loss market area dominates this market, as its RTD tea market is mature and homogenous with high penetration, also the shift in preference of consumers to healthier alternatives of caffeinated beverages to tea. The US RTD Tea market is expected to be the highest contributor to the RTD Tea market in this region.


Further, major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 2: RTD TEA MARKET SHARE BY REGION 2022 (%)


RTD TEA MARKET SHARE BY REGION 2022


Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review


Asia Pacific RTD Tea market accounts for the second-largest market share due to the presence of highly populous countries and the rising geriatric population in this region that are fond of tea. Further, China's RTD Tea market and India RTD Tea market held the largest market share in the Asia-Pacific region


The European RTD Tea Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to expanding awareness of a healthy lifestyle and nutrition and rising per capita disposable income. Moreover, the UK’s RTD Tea market and Germany RTD Tea market held the largest market share due to the changing lifestyle in the European region.


RTD Tea Key Market Players & Competitive Insights


Leading market players are investing heavily in research and development in order to expand their product lines, which will help the RTD Tea market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the RTD Tea industry must offer cost-effective items.


Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the RTD Tea industry to benefit clients and increase the market sector. In recent years, the RTD Tea industry has offered some of the most significant advantages to the food & beverage industry. Major players in the RTD Tea market, including Suntory Holdings Limited, Nestlé, The Coca-Cola Company, Unilever, Asahi Group Holdings, Ltd., PepsiCo, Starbucks Coffee Company, Monster Energy Company, Danone, AriZona Beverages USA, Snapple Beverage Corp, and others, are attempting to increase market demand by investing in research and development operations.


The Coca-Cola Company is a complete beverage company, providing over 500 brands in more than 200 countries. The Coca-Cola brand's portfolio consists of the world's most valuable beverage brands like AdeS soy-based beverages, Ayataka green tea, Dasani waters, Del Valle juices and nectars, Fanta, Georgia coffee, Gold Peak teas and coffees, Honest tea, innocent smoothies and juices, Minute Maid juices, Smartwater, Sprite, vitaminwater, and ZICO coconut water. Coca-Cola is transforming its portfolio by reducing sugar in its drinks with new inventions. In November 2022, Coca-Cola European Partners plc invested USD 21.5 million in a new bottling line at its production facility in Socx, France. This expansion of the new line will support the development of the Coca-Cola company's Fuze Tea brand in glass bottle format, along with the production at the plant destined to provide markets in neighboring European countries.


 Snapple Beverage Corp has spent a large amount of money on research and development to get the upper edge over its competitors, thus helping the company by increasing its sales revenue. The increasing demand for healthy drinks coupled with growing personal disposable income in the region. Snapple is a brand of tea and juice drinks owned by Keurig Dr. Pepper and based in Plano, Texas, US. The company is known to provide Unadulterated Food products which were founded in 1972.


Key Companies in the RTD Tea market include



  • Suntory Holdings Limited

  • Nestlé

  • The Coca-Cola Company

  • Unilever

  • Asahi Group Holdings, Ltd.

  • PepsiCo

  • Starbucks Coffee Company

  • Monster Energy Company

  • Danone

  • Arizona Beverages USA

  • Snapple Beverage corp


RTD Tea Industry Developments


September 2022: Just Ice Tea was launched by Honest Tea, a ready-to-drink organic iced tea brand that emphasizes sourcing simple ingredients and Fair Trade Certified teas and sweeteners. This new line is present in various flavours such as Berry Hibiscus Herbal Tea, Honey Green Tea, Moroccan Mint Tea, and a few others.


May 2022: The new Lipton Immune Support ready-to-drink tea beverage was launched by Lipton. It is an RTD iced tea blend of green tea, Vitamin C, and Zinc, and it is available at national retailers in Green Tea Pineapple Mango flavor.


September 2021: Arizona developed Saint James Tea RTD green tea with three flavors: Pineapple & Mango, Passionfruit & Peach, and Blueberry & Raspberry alongside Original Green Tea, Initially launched in Florida.


RTD Tea Market Segmentation


RTD Tea Type Outlook



  • Black Tea

  • Green Tea

  • White Tea

  • Others


RTD Tea Category Outlook



  • Conventional

  • Organic


RTD Tea Regional Outlook



  • North America

    • US

    • Canada



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific



  • Rest of the World

    • Middle East

    • Africa

    • Latin America



Report Attribute/Metric Details
Market Size 2023 USD 22.49 billion
Market Size 2024 USD 24.21 billion
Market Size 2032 USD 40.542 billion
Compound Annual Growth Rate (CAGR) 6.65% (2024-2032)
Base Year 2022
Market Forecast Period 2024-2032
Historical Data 2018- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Type, Category, and Region
Geographies Covered Asia Pacific, North America, Europe, and the Rest of the World
Countries Covered The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Suntory Holdings Limited, Nestlé, The Coca-Cola Company, Unilever, Asahi Group Holdings, Ltd., PepsiCo, Starbucks Coffee Company, Monster Energy Company, Danone, AriZona Beverages USA, Snapple Beverage Corp  
Key Market Opportunities Increased demand for healthy drinks and ready-to-drink options.
Key Market Dynamics Rise in awareness about the health benefits associated with the consumption of tea, reduced risk of having heart stroke.


Frequently Asked Questions (FAQ) :

The RTD Tea market size was valued at USD 22.49 Billion in 2023.

The market is anticipated to grow at a CAGR of 6.65% during the forecast period, 2024-2032.

North America had largest share in the market

The key players in the market are Suntory Holdings Limited, Nestlé, The Coca-Cola Company, Unilever, Asahi Group Holdings, Ltd., PepsiCo, Starbucks Coffee Company, Monster Energy Company, Danone, AriZona Beverages USA, Snapple Beverage Corp.

The black tea RTD Tea category dominated the market in 2023.

The conventional category had the largest share in the market.

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