RTD Tea Market Size

RTD Tea Market Analysis

The RTD Tea Market size is estimated at 70.74 billion USD in 2024, and is expected to reach 107.7 billion USD by 2030, growing at a CAGR of 7.25% during the forecast period (2024-2030).

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70.74 Billion

Market Size in 2024 (USD)

107.7 Billion

Market Size in 2030 (USD)

5.69 %

CAGR (2018-2023)

7.25 %

CAGR (2024-2030)

Largest Segment by Soft Drink Type

38.68 %

value share, Iced Tea, 2023

Iced tea popularity as a ready-to-drink beverage stems from its versatility, taste and convenience. Additionally, its lower calorie count also contributes to its appeal among consumers

Largest Region

61.76 %

value share, Asia-Pacific, 2023

Emerging countries like India, China, and Japan among others are a few of the major markets for RTD tea. Increasing socialization among millennials has increased the demand for RTD tea.

Fastest-growing segment by Soft Drink Type

8.26 %

Projected CAGR, Herbal Tea, 2024-2030

Due to its usage of natural components, herbal tea is growing in popularity in the market. This tendency has emerged as a result of people becoming more concerned of their health.

Fastest-growing region

9.42 %

Projected CAGR, Europe, 2024-2030

Black Tea is witnessing growth in African countries. Rising awareness of the nutritional benefits of black tea over regular tea makes it a preferred choice, after green tea in the region.

Leading Market Player

12.18 %

market share, PepsiCo, Inc., Inc.

The company has a large portfolio of brands in RTD tea market. It sells its RTD tea products under trademarks like Lipton and Arizona, along with various specialized companies.

RTD Tea is majorly driven by health and wellness along with convenience in on-the-go lifestyles

Rising obesity concerns and preferences for healthy drinks are increasing sales

RTD Tea Industry Segmentation

Green Tea, Herbal Tea, Iced Tea are covered as segments by Soft Drink Type. Aseptic packages, Glass Bottles, Metal Can, PET Bottles are covered as segments by Packaging Type. Off-trade, On-trade are covered as segments by Distribution Channel. Africa, Asia-Pacific, Europe, Middle East, North America, South America are covered as segments by Region.

• Global RTD Tea has experienced significant growth in recent years driven by health-conscious trends and convenience in beverage choices. The market dynamics have been shaped not only by traditional tea-drinking cultures in countries like China, India, and Japan but also by the globalization of tastes. Green tea accounted for a significant share compared to all other RTD tea types. The market for green tea registered a CAGR of 6.07% from 2018 to 2023. The major factor driving the growth of RTD tea is growing consumers' inclination toward healthy beverage products. In 2022, around 50% of consumers across the world preferred green tea over other tea types.
• Iced tea is the second-leading RTD tea type globally. This is attributed to increased consumption of iced tea across the regions. For instance, around 75 - 80% of tea consumed in the United States was iced as of 2022. Iced tea offers a diverse range of flavors to cater to varying taste preferences. With the growing health-conscious and diabetic population, companies are expected to use healthier sugar substitutes, such as stevia, coconut sugar, and organic honey, to add sweetness to the iced teas. Brands are expected to use healthier sugar substitutes, such as stevia, coconut sugar, and organic honey, to add sweetness to the iced teas in the future.
• Herbal tea is projected to register the fastest CAGR value of 7.81% between 2024 and 2030. Herbal tea, in combination with antioxidants that help to boost the immune system, contains essential nutrients such as calcium, magnesium, potassium, and vitamin C. Products with immunity-boosting properties are becoming increasingly popular globally. This factor will further aid the market in the future.