Americans love their coffee. And, they love their tea. It is no surprise that ready-to-drink tea and coffee have been a hit.
From $98 million in 2022 to a predicted $151 million by 2028 for the global market, the market is expected to increase by a significant 7.86%. Aside from the culture that’s obsessed with such beverages, the ready-to-drink or RTD coffees and teas generally made from natural ingredients are more practical and, thus, enjoyable. The various types of flavors and characteristics- ranging from sugar-free to shelf-life- offer a wide target audience. These RTD beverages can accommodate any preference. For example, an emphasis on health awareness boosts RTD drinks as alcoholic beverages are looked down upon. With all the ways to go about innovating coffee and tea, the market gains a plethora of opportunities to grow and flourish.
As broadly mentioned before, one main trend currently in action is health and wellness. Including functional ingredients, natural formulations, and following healthy food guidelines makes RTD tea and coffee more appealing. Furthermore, one specific factor is health-conscious individuals who prefer the antioxidants in RTD tea. Therefore, it seems like this customer base is a large contributor to the growing market.
The one downfall of RTD coffee and tea is the higher costs, which makes sense because they are of higher quality than regular coffee and tea. Even so, the tea market accumulated a 62% share of the global revenue in 2022. Once again, studies show that the concerns over health have risen demands for good quality drinks, and healthy drinks. As a result, the global soda consumption has declined. Anti-oxidants in tea and coffee further persuade the healthier benefits of drinking them over soda.
The coffee and tea market is on the rise, but specifically, the innovative RTD coffee and tea is significantly on the rise. This innovative convenient drink meets consumers needs in the best way. It aligns with their health values and life “on the go” patterns. Such factors contribute to market growth.
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