LONDON--(BUSINESS WIRE)--The latest market research report by Technavio on the global RTD tea and coffee market predicts a CAGR of close to 9% during the period 2017-2021.
The report segments the global RTD tea and coffee market by product type (RTD tea and RTD coffee), by distribution channel (supermarkets and hypermarkets, on-trade, independent retailers, and convenience stores), and by geography (the Americas, EMEA, and APAC). It provides a detailed illustration of the major factors influencing the market, including drivers, opportunities, trends, and industry-specific challenges.
Here are some key findings of the global RTD tea and coffee market, according to Technavio food and beverage researchers:
- Fast-paced lifestyles of consumers: a major market driver
- In 2016, the RTD tea segment dominated the market by occupying more than 75% share
- In 2016, APAC dominated the global RTD tea and coffee market with a share of close to 64%.
- JDB Group, Nestlé, PepsiCo, THE COCA-COLA COMPANY, and Tingyi (Cayman Islands) Holding and Uni-President are some of the players in the market
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Fast-paced lifestyles of consumers: a major market driver
Fast-paced lifestyles of consumers are one of the major factors driving the global RTD tea and coffee market. The fast-paced lifestyles of consumers today make it difficult for them to find the time to prepare food and beverages from scratch. Therefore, consumers are increasingly looking for RTD products that fulfill their daily nutrition requirements and can be consumed on-the-go. Owing to this, RTD products such as RTD tea and coffee are becoming popular among consumers, especially in North America and Europe. Furthermore, players are concentrating on new urban regions such as Asian, Latin American, and Eastern European countries as many unharnessed opportunities still exist in these regions.
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APAC: largest RTD tea and coffee market
The RTD tea and coffee market in APAC is predicted to register a steady growth during the forecast period due to factors such as the presence of fast-growing economies, massive urbanization, rising disposable income of consumers, and growing café culture. Leading café chains such as Starbucks and Costa are opening their retail outlets in this region to capitalize on the growing trend. In countries such as China, the introduction of new still RTD tea and coffee ranges has been improving the overall sales of these non-alcoholic beverages. In countries such as Japan, consumers have now started shifting from hot tea to iced tea, which is an emerging trend that will have a significant impact on the sales of still RTD tea products.
According to Manjunath Reddy, a lead analyst at Technavio for research on non-alcoholic beverages, “Product premiumization is another emerging trend in China and Australia that will change the dynamics of the RTD tea and coffee market in APAC during the forecast period. This has encouraged many leading players to upgrade their existing range by including innovative and premium beverages in unique flavors.”
Competitive vendor landscape
The global RTD tea and coffee market is subject to the rapidly changing consumer demands and preferences. Thus, players' performance in the market is often affected by the changing consumer spending patterns, consumer tastes, regional and local economic conditions, and even demographic trends. The changing economic scenario not only affects customers' living standards but also affects players' businesses. The market is fragmented by the presence of many small and large players that compete based on factors such as price, quality, innovation, packaging, reputation, marketing channels, and distribution. Intense competition among players, along with rapid technological changes, constitutes a significant challenge to players' operations.
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