RTD Tea Market Size, Share, and Industry Analysis, By Type (Green, Black, and Others), By Category (Organic and Conventional), By Distribution Channel (Hypermarket/Supermarket, Specialty Stores, E-commerce, and Others), and Regional Forecast, 2025-2032

As per the Food and Agriculture Organization (FAO), tea is the most consumed beverage after water globally. For around half of the world countries, such as China and India, drinking tea is a daily ritual. Over the years, global tea consumption has shown significant growth. There are various types of tea products, including RTD tea, which is packaged and prepared tea that is ready for consumption. These RTD tea products are available in the global market in various types, including green, black, and others. The RTD tea can be further categorized as organic and conventional. The RTD tea products are available through a diverse range of distribution channels, including hypermarkets/supermarkets, specialty stores, e-commerce, and others.

In recent years, consumers have shown a growing awareness of the health benefits associated with tea. This rising awareness is owing to reports published by global organizations such as the Academy of Nutrition and Dietetics. For instance, according to the report published in November 2022 by the Academy of Nutrition and Dietetics, tea has antioxidants that assist in reducing the risk of a few chronic diseases. This rising awareness has fueled the demand for tea, including RTD tea products.

However, the COVID-19 pandemic had a significant impact on the global RTD tea market owing to the disruption in the supply chain with trade restrictions and lockdown measures in place. Also, the sudden panic among consumers due to lockdowns implemented by governments across the globe gave rise to panic buying, which further affected the supply and demand gap and cropped the global tea supply chain with bottlenecks. For instance, as per the report published by the International Institute of Sustainable Development in January 2024, the global pandemic resulted in a peak in tea consumption owing to the image of tea being a wellness product and being the only affordable wellness product with diverse health benefits during that time. This growing inclination and changing perception among individuals resulted in driving in-home tea consumption.

Key Insights

The report covers the following key insights:

• Overview of Parent Market
• Supply Chain Analysis
• Industry SWOT Analysis
• Key Industry Developments (Product launches, Mergers, Acquisitions, Partnerships)
• Impact of COVID-19 on RTD Tea Market

Segmentation

Analysis by Type

The type segment is further divided into green, black, and others. However, all of these tea varieties are manufactured from the sinensis plant, which gives us black, green, and three other tea varieties, depending on the degree of oxidation. The taste and flavor are significantly dependent on the right harvesting, and thus, the tea industry is considered to be highly labor intensive. If tea shoots are not plucked at the right time, they tend to lose quality. For instance, in 2020, as per the FAO, tea production, which complies with voluntary sustainability standards (VSSs), has risen to 24% of total tea production, which was around 2% in 2008.

Analysis by Category

The global RTD tea market is further split by category into organic and conventional. The organic segment products are those that are produced without the use of any pesticides, herbicides, or chemical fertilizers. Instead of using any chemicals to grow and harvest, organic farmers use natural and sustainable means to grow tea and process it. These products have been gaining traction in recent years, with increasing awareness among individuals towards organic products and rising organic and sustainable tea products.

Analysis by Distribution Channel

The distribution channel segment includes hypermarkets/supermarkets, specialty stores, e-commerce, and others. From which hypermarkets/supermarkets have been catering to the consumers with diverse products offering convenience and offers. However, with the rapid penetration of e-commerce across the globe, especially in countries such as India, China, Japan, and others, the e-commerce channel is expected to contribute to robust growth in the global RTD tea market. For instance, as per the report published by the Government of India in 2024, the rapid development of India’s e-commerce industry has been one of the most prominent factors in the transformation of India’s digital landscape.

Regional Analysis

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The global RTD tea market can be further split into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. Tea is manufactured in 60 countries, with China holding a dominant share in global tea manufacturing. These tea leaves are raw materials used in RTD tea production. North America is one of the prominent markets globally with high penetration and growing preference among consumers towards tea and with a diverse range of companies such as Nestle and Unilever. Asia Pacific is another prominent player, with countries such as China and India, where tea is a ritualistic drink. Thus, they have one of the highest per capita tea consumption rates. Furthermore, Europe, which includes countries such as the U.K., Ireland, and others that are known for higher tea consumption rates, makes it another prominent region. The Middle East & Africa region has shown significant promise as it is said to be one of the major contributors towards the market growth in the forecast period, with countries such as Turkey contributing towards the rising demand.

Key Players Covered

The global RTD tea market has a diverse range of market players, including Arizona Beverages USA LLC, Asahi Group Holdings Ltd., Hangzhou Wahaha Group Co. Ltd., Keurig Dr Pepper Inc., Kirin Holdings Company Limited, Nestle S.A., PepsiCo Inc., Suntory Holdings Limited, Tata Consumer Products Ltd, The Coca-Cola Company. These manufacturers have adopted various growth strategies, such as new product launches, geographical expansion, mergers, acquisitions, partnerships, and others, to increase their presence in the global market.

Key Industry Developments

• In November 2023, Coca-Cola Company announced that it is looking forward to expanding its reach in the Indian ready-to-drink beverage market with the launch of Honest Tea. This all-new RTD tea product is green tea, which will be sourced from Kolkata-based Luxmi Tea Co Private Ltd's Makaibari Tea Estate.
• In October 2023, Beyond Water, an India-based Ready-to-drink beverages manufacturing startup, announced the launch of its all-new RTD iced tea. The company aims to tap the rising consumer demand for healthier beverages.
• In April 2022, Beverage Partners International announced the launch of its all-new Dilmah RTD Iced Tea range in Singapore. The company has become the global beverage partner for Dilmah RTD products, which was launched at the Orchard Hotel in Singapore. The new product range consists of six flavors, including artisanal green and black tea.