Global RTD Tea Expanding Rapidly

Market researchers continue to optimistically project exceptional growth in the ready-to-drink tea category globally and in the U.S. Global sales will top 116 billion in the next five years according to Grand View Research, which released its latest Tea and Coffee Market Size, Share & Trends update. “The instant energy provided by these products and their status of healthier substitute to carbonated drinks are likely to provide a fillip to the market,” according to the report which forecast a compound annual growth rate (CAGR) of 5.6 percent from 2016 through 2024. Growth in RTD tea is expected to be 5.7 percent. RTD sales in North America will exceed $21.7 billion during the reporting period. “RTD tea will continue to represent the most prominent product segment owing to rising demand for iced tea and concentrates,” according to the 104-page report. “Introduction of new flavors in the product categories is anticipated to provide a tremendous push to the overall market. Formation of associations between manufacturers in this market is also influencing the demand for the products,” according to Grand View. “Millennials are the major consumers of energy drinks. Clever marketing and branding efforts taken by energy drink manufacturers are garnering the attention of people belonging to various age groups,” according to Grand View. “To boost the sales of energy drinks, several manufacturers are tying up with various RTD tea and coffee manufacturers to launch new products that are not only ready to drink, but also have the basic underlying taste of tea and coffee,” writes Grand View. Asia is the region showing the fastest volume and value growth. RTD coffee and tea in Europe is expected to grow at 5.4 percent (CAGR). “Asian countries especially India and China are expected to observe remarkable growth in the forthcoming years,” according to the report which indicates PET bottles are gaining on glass. “PET bottles dominated the global RTD tea and coffee market with a share of over 31.0% in 2015,” according to Grand View. Source: Grand View