The Ready To Drink (RTD) tea market will probably reach USD 40,007.5 Million by 2025. Then, it may grow even more to USD 88,802.7 Million by 2035, with a yearly growth rate of 8.3%.

Metric	Value
Market Size (2025E)	USD 40,007.5 Million
Market Value (2035F)	USD 88,802.7 Million
CAGR (2025 to 2035)	8.3%

Country-wise Insights

Country	CAGR (2025 to 2035)
USA	8.5%

Country	CAGR (2025 to 2035)
UK	8.1%

Region	CAGR (2025 to 2035)
European Union (EU)	8.2%

Country	CAGR (2025 to 2035)
Japan	8.4%

Country	CAGR (2025 to 2035)
South Korea	8.3%

Ready to Drink (RTD) Tea Market - Segmentation Outlook

Product Type	Market Share (2025)
Black Tea	42.6%

Sales Channel	Market Share (2025)
Indirect Sales	68.9%

Competitive Outlook: Ready-To-Drink (RTD) Tea Market

Company Name	Estimated Market Share (%)
The Coca-Cola Company (Honest Tea, Fuze Tea)	20-24%
Nestlé S.A. (Nestea)	16-20%
PepsiCo, Inc. (Lipton, Pure Leaf)	14-18%
AriZona Beverages USA	10-14%
Suntory Beverage & Food Limited	8-12%
Other Companies (combined)	30-40%

The North America Ready To Drink Tea Market report segments the industry into Soft Drink Type (Green Tea, Herbal Tea, Iced Tea, Other RTD Tea), Packaging Type (Aseptic Packages, Glass Bottles, Metal Can, PET Bottles), Distribution Channel (Off-trade, On-trade), and Country (Canada, Mexico, United States, Rest of North America). Get five years of historical data alongside five-year market forecasts.

The global combined revenue in the 'Ready-to-Drink (RTD) Tea' segment of the non-alcoholic drinks market was forecast to continuously increase between 2025 and 2029 by in total 17.6 billion U.S. dollars (+15.39 percent). After the ninth consecutive increasing year, the combined revenue is estimated to reach 131.99 billion U.S. dollars and therefore a new peak in 2029. Find further information concerning the revenue, combined in the 'Other Juice, Juice Mixtures & Smoothies' segment of the non-alcoholic drinks market in the United Kingdom and the volume, combined in the non-alcoholic drinks market in Finland. The Statista Market Insights cover a broad range of additional markets.

The Europe Ready To Drink Tea Market report segments the industry into Soft Drink Type (Green Tea, Herbal Tea, Iced Tea, Other RTD Tea), Packaging Type (Aseptic Packages, Glass Bottles, Metal Can, PET Bottles), Distribution Channel (Off-Trade, On-Trade), and Country (Belgium, France, Germany, Italy, Netherlands, Russia, Spain, Turkey, United Kingdom, Rest of Europe).

Market Summary of Ready to drink Tea Market:

• Global Ready to Drink Tea market size in 2023 was XX Million. Ready to Drink Tea Industry's compound annual growth rate (CAGR) will be XX% from 2024 to 2031. • Increase in the popularity of RTD Tea by the health-conscious population, increases the market growth. • Because more people are drinking tea worldwide, the black tea category held the largest ready-to-drink tea market and is expected to continue to hold this position during the market's projection period • The COVID-19 pandemic has increased awareness of the connection between nutrition and health and is probably going to hasten the shift to better-tasting, higher-quality RTD teas. • The APAC holds the largest share in the ready to drink tea market due to the demand for tea in the region is driven by nations with large numbers of tea plantations, like China, Japan, and India.

Market Dynamics of Ready to drink Tea Market:

Key Drivers of Ready to drink Tea Market:

Increase in the popularity of RTD Tea by the health-conscious population, there is increases the market growth.

The market for tea-based RTD beverages has been growing consistently as consumers search for more healthful substitutes for conventionally sweetened drinks like energy drinks and colas. RTD iced teas with herbal infusions are going to becoming even more popular as health-conscious consumers grow more prevalent. . For Instance, 25% of consumers claim to drink RTD tea due of its health benefits, per Synergy's primary research. Functional claims for RTD tea that are currently in demand including antioxidant, energy, stress and sleep, brain and nervous system, immune system, probiotics, and collagen.(Source:https://www.synergytaste.com/insights/from-the-benefits-to-the-boozy-varieties-its-tea-time/#:~:text=According%20to%20Synergy's%20primary%20research,immune%20system%2C%20probiotic%20and%20collagen.) For Instance, according to Moreno, "Many studies have examined the health benefits of teas, which range from supporting cardiovascular health to acting as a diuretic." "People who want to focus on particular health concerns are more likely to research the effects that various leaves and herbs have on their bodies. In order to capitalize on this trend, beverage producers can create new tea beverages that appeal to consumers who are health-conscious and who are searching for tasty substitutes for other soft drinks. Water or ethanol can be used to naturally extract tea extracts, but since most volatile chemicals in tea leaves are soluble in water, water is typically used to extract tea tastes. Additionally, since consumers are aware that water is natural, pure, and generally healthy for them, it is consistently chosen as the solvent in the beverage sector. For Example, Green Tea. Green tea has a tone of chemicals that are good for health. Consuming green tea on a regular basis can aid in weight loss and lower your risk of developing diabetes, heart disease, and cancer, among other illnesses. It appears that consuming three to five cups of green tea daily can maximize its health benefits.(Source:http://https://www.bevindustry.com/articles/95876-health-benefits-keep-tea-market-afloat) For Instance, according to Healthline, Catechins are a particular class of polyphenol found in green tea. Antioxidants called catechins aid in preventing cell damage and offer additional health advantages. The most well-known and prevalent catechin in green tea is called epigallocatechin-3-gallate (EGCG), and studies have shown that it may help with a number of medical illnesses or disease signs. (Source:https://www.healthline.com/nutrition/top-10-evidence-based-health-benefits-of-green-tea#1.-Contains-plant-based-antioxidant-compounds)Hence, dur to the awareness of RTD Tea among consumers that it is good for health, people are consuming it more and it leads to the market growth of RTD Tea.

Key Restraints of Ready to drink Tea Market:

Increase in the number of substitutes in the industry hampers the market growth

In the ready-to-drink (RTD) tea business, one of the biggest challenges is the abundance of replacements. Coffee is a common alternative to RTD tea in the market. In particular, iced coffee and cold brew varieties are great substitutes for RTD tea. Coffee appeals to custo...

The global RTD tea was valued at USD 34.31 billion in 2022 and is expected to reach USD 47.13 billion by 2028, growing at a cagr of 5.43%.

Ready To Drink Tea And Coffee Market is estimated to grow at 6.3% CAGR to surpass USD 219.95 Billion by 2034

The global market for ready-to-drink (RTD) tea reached approximately USD 34.10 Billion in 2024. The market is estimated to grow at a CAGR of 5.80% in the forecast period of 2025-2034, reaching a value of around USD 59.93 Billion by 2034.

Arizona was the top-selling ready-to-drink (RTD) tea brand in the United States in 2024, by a healthy margin. Sales of the beverage exceeded one billion dollars, compared to competitors PureLeaf and Lipton who had respective sales of 976 million and 601 million dollars. PureLeaf is a product of the Pepsi Lipton Tea partnership, which includes a portfolio of RTD teas, including Lipton Iced Tea, PureLeaf and Brisk. Both companies were among the most valuable soft drink brands in 2023. Lipton’s origins Lipton tea was originally marketed by Sir Thomas Lipton in 1890. Already a successful grocer, Lipton bought tea gardens in Sri Lanka in an effort to provide low-priced tea to consumers. In 1972, Unilever, one of the largest consumer goods companies in the world, acquired Lipton tea. Lipton’s RTD beverages are sold by Pepsi Lipton International, a joint venture between Unilever and PepsiCo. The broader RTD tea market Total sales of the ready-to-drink tea segment in the United States reached 7.9 billion dollars in 2019. In comparison to ready-to-drink coffee, RTD tea sales growth was subdued, increasing by only 1.1 percent during 2018 to 2019.

Vietnam Ready-to-Drink (RTD) Tea market is valued at USD 350 million, based on a five-year historical analysis. The marketâ??s growth is primarily driven by rising consumer demand for convenient and healthier beverage alternatives.

Ready To Drink Tea Market Outlook

The global Ready To Drink (RTD) tea market size is projected to grow from USD 30.20 billion in 2023 to USD 52.80 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.5% during the forecast period. The rising consumer inclination towards healthier beverages, coupled with increasing awareness about the health benefits of tea, are key factors driving this growth. Additionally, the convenience and variety offered by RTD tea products are further propelling market expansion.

One of the primary growth drivers of the RTD tea market is the growing awareness regarding health and wellness among consumers. RTD tea is perceived as a healthful alternative to carbonated drinks and other sugary beverages, and this perception has significantly boosted its demand. Modern consumers are increasingly opting for beverages that not only quench their thirst but also provide additional health benefits, such as antioxidants and natural ingredients found in tea. This trend is particularly evident among the younger demographic, which is more health-conscious and adventurous in trying new food and beverage products.

The convenience factor associated with RTD tea is another significant growth driver. The fast-paced lifestyle of modern consumers has led to a surge in demand for ready-to-consume products that require no preparation time. RTD tea perfectly fits this need by offering a quick and easy way to enjoy a refreshing beverage on the go. This convenience is further enhanced by the wide variety of packaging options available, such as bottles, cans, and cartons, which cater to different consumer preferences and usage occasions.

Innovation and product variety are also playing a crucial role in the marketÂ’s growth. Manufacturers are continuously introducing new flavors and formulations to keep consumers engaged and attract new ones. From traditional black and green teas to exotic herbal and fruit-infused varieties, the extensive range of options available in the market caters to diverse consumer tastes and preferences. Additionally, the introduction of organic and natural RTD tea products has captured the interest of health-conscious consumers who are willing to pay a premium for high-quality beverages.

The emergence of Alcoholic Tea as a niche segment within the RTD tea market is capturing the attention of adventurous consumers looking for unique beverage experiences. This innovative blend combines the health benefits of tea with the social appeal of alcoholic beverages, offering a refreshing alternative for those seeking moderation in their alcohol consumption. The fusion of flavors, such as green tea with gin or black tea with rum, provides a sophisticated twist that appeals to both tea enthusiasts and cocktail lovers. As consumers continue to explore new taste profiles, the alcoholic tea segment is poised for growth, particularly in markets where craft beverages are gaining popularity.

Geographically, the Asia Pacific region dominates the RTD tea market, driven by high consumption rates in countries like China, Japan, and India. The traditional tea-drinking cultures in these countries, coupled with the growing popularity of RTD tea among younger consumers, are key factors contributing to the regionÂ’s market dominance. North America and Europe are also significant markets, characterized by high levels of innovation and consumer demand for premium and functional beverages.

Product Type Analysis

The RTD tea market is segmented by product type into black tea, green tea, herbal tea, fruit tea, and others. Black tea holds a significant share of the market due to its widespread popularity and traditional consumption patterns. The robust flavor and perceived health benefits of black tea, such as its antioxidant properties, make it a favored choice among consumers. Additionally, black teaÂ’s versatility allows it to be blended with various flavors, increasing its appeal.

Green tea is another major segment within the RTD tea market. Known for its numerous health benefits, including weight management and antioxidant properties, green tea has gained substantial popularity among health-conscious consumers. The increasing availability of flavored green tea variants, such as jasmine and honey green tea, has further boosted its market share. The trend towards natural and organic products has also propelled the demand for green tea.

Herbal tea r

The Asia-Pacific (APAC) ready-to-drink (RTD) tea market is experiencing robust growth, driven by increasing health consciousness, rising disposable incomes, and the popularity of convenient beverage options. This burgeoning market, encompassing diverse tea types like green tea, herbal tea, and iced tea, is witnessing a shift towards healthier options and innovative packaging. The preference for convenient formats like PET bottles and aseptic packages is fueling market expansion, particularly within the rapidly growing convenience store and online retail channels. Major players like Nestle, Coca-Cola, and regional giants are strategically investing in product diversification, expanding distribution networks, and leveraging marketing campaigns to capture market share. While the on-trade segment (restaurants, cafes) remains significant, the off-trade segment is exhibiting faster growth, reflecting changing consumer habits and preference for at-home consumption. Competition is intense, with both multinational and regional companies vying for dominance. However, challenges such as fluctuating raw material prices and the need to address sustainability concerns remain. Future growth will likely be shaped by the increasing adoption of functional and premium tea varieties, catering to evolving consumer preferences for health and wellness benefits. The market is expected to be highly fragmented due to the significant number of regional players and diverse product offerings in various segments. The projected CAGR for the APAC RTD tea market suggests sustained growth, with specific segments showing even faster expansion. For example, the demand for green tea and herbal tea is anticipated to outpace other segments due to their perceived health benefits. This growth is geographically diverse, with countries like China, India, and Japan expected to remain key markets, alongside the rapid expansion in Southeast Asian nations. The market's success hinges on the ability of companies to adapt to changing consumer tastes, embrace sustainable practices, and navigate supply chain challenges effectively. Continued innovation in flavors, packaging, and distribution will be crucial to maintaining the market's dynamic growth trajectory. Furthermore, the rising adoption of e-commerce channels provides promising growth opportunities, especially for companies that leverage effective digital marketing strategies to reach broader consumer segments. Recent developments include: November 2023: The Coca-Cola Company's brand ChaiChun brought exquisite teas to Delhi with its new store, The ChaiChun Store, expanding its business.September 2022: Ayataka, a brand of iced green tea produced by Coca-Cola, has announced the release of its new Ayataka Cafe Matcha Latte which will hit stores across JapanJune 2021: Sermsuk launched “est Play plus vitamins B6 and B12”, a vitamin-infused carbonated soft drink (CSD) certified by “Healthier Choice” nutritional logo.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The global combined volume in the 'Ready-to-Drink (RTD) Tea' segment of the non-alcoholic drinks market was forecast to continuously increase between 2025 and 2029 by in total two billion liters (+6.17 percent). After the ninth consecutive increasing year, the combined volume is estimated to reach 34.39 billion liters and therefore a new peak in 2029.

The RTD Tea Market size was valued at USD 22490 Million in 2023 and is projected to reach USD 40542 Million by 2032, exhibiting a CAGR of 1.50 % during the forecast periods. The trend is towards ready-to-drink tea as consumers increasingly prefer beverages that are convenient and refreshing. These product categories will comprise a great diversity of black, green, and herbal tea-based beverages, flavored, functional, and the like. The applications shall range from simple everyday hydration to an increasing scope of functionally driven health benefits. The segments will be made of standard, premium, and health-based types, all empowered by advanced brewing and packaging technologies. It affects heavyweight contributions to the beverage industry and promotion of health-oriented trends in consumerism. The advantages that exist in favor of RTD tea are convenience, variety, and the capacity to serve people with diverse taste buds. Innovation and tradition come together to drive the RTD tea market to a stronghold in the global beverage scenario. Recent developments include: February 2024: Rockstar® Energy Drink, a subsidiary of PepsiCo, Inc unveiled “Rockstar Focus™,” a new line of energy drinks delivering energy & mental boost made with innovative ingredients like Lion’s Mane, a mushroom used in traditional eastern cultures, and providing 200 mg of caffeine. These products are avilable in retail channels in Saudi Arabia, UAE and Qatar.November 2023: The Coca-Cola Company's brand ChaiChun brought exquisite teas to Delhi with its new store, The ChaiChun Store, expanding its business.January 2023: Lipton Tea has announced a new partnership with Full Cart, a program within nonprofit U.S. Hunger, and a virtual food pantry to make heart-friendly nutrition and grocery assistance more accessible.. Key drivers for this market are: Increasing demand for meat alternatives. Potential restraints include: Presence of numerous alternatives in the plant proteins. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The Indonesia RTD Tea Market size is USD 1.1 billion in 2023, driven by market outlook, segmentation analysis, and growth opportunities. Explore key players and future trends.

The Ready-to-Drink Tea Market size was valued at USD 34070 Million in 2023 and is projected to reach USD 44233.73 Million by 2032, exhibiting a CAGR of 3.80 % during the forecast periods. Given the increasing demands from consumers in search of convenient and healthy beverages, the RTD tea market is fast growing. The broad product range of black, green, herbal, and flavored teas caters to demands for refreshment or health benefits consumed daily. It has broadened into three sub-categories: standard, premium, and health-focused; advanced brewing and packaging technologies in this field support healthier lifestyles and growth in beverage industries. This includes convenience, many flavors, and strong appeal to health-conscious consumers. In its class, the RTD tea market combines the twin power of innovation with health benefits to better its competitive edge globally. Recent developments include: In 2022, Ito En Ltd launched a new line of ready-to-drink green teas with added vitamins and minerals.

, In 2023, PepsiCo Inc acquired KeVita, a leading producer of fermented probiotic tea drinks. , In 2024, Dr Pepper Snapple Group Inc launched a new line of ready-to-drink teas made with real fruit juice.. Key drivers for this market are: Increasing demand for meat alternatives. Potential restraints include: Presence of numerous alternatives in the plant proteins. Notable trends are: Supermarket/ Hypermarket is the Most Preferred Sales Channel.

The combined revenue in the 'Ready-to-Drink (RTD) Tea' segment of the non-alcoholic drinks market in Brazil was forecast to continuously increase between 2025 and 2029 by in total 0.2 billion U.S. dollars (+23.53 percent). After the ninth consecutive increasing year, the combined revenue is estimated to reach 1.02 billion U.S. dollars and therefore a new peak in 2029. Find more in-depth information regarding the average revenue per user (ARPU) concerning the bottled water segment of the non-alcoholic drinks market in the United States and the average price per unit (PPU) concerning the energy & sports drinks segment of the non-alcoholic drinks market in Brazil. The Statista Market Insights cover a broad range of additional markets.

The US Ready to Drink Tea Market is segmented by Soft Drink Type (Green Tea, Herbal Tea, Iced Tea), by Packaging Type (Aseptic packages, Glass Bottles, Metal Can, PET Bottles) and by Distribution Channel (Off-trade, On-trade). Market Value in USD and Volume in Liters are both presented. Key data points observed include market segmental split by soft drink category, packaging type, distribution channel, and region

The combined volume in the 'Ready-to-Drink (RTD) Tea' segment of the non-alcoholic drinks market in Brazil was forecast to continuously increase between 2025 and 2029 by in total 33.1 million litres (+6.56 percent). After the ninth consecutive increasing year, the combined volume is estimated to reach 537.86 million litres and therefore a new peak in 2029. Find more in-depth information regarding the average revenue per user (ARPU) concerning the juices segment of the non-alcoholic drinks market in Russia and the revenue concerning the juices segment of the non-alcoholic drinks market in Europe. The Statista Market Insights cover a broad range of additional markets.

The US Ready-to-Drink (RTD) tea market is experiencing robust growth, driven by increasing consumer demand for convenient and healthy beverage options. The market's expansion is fueled by several key factors. Firstly, the rising popularity of tea, particularly among health-conscious millennials and Gen Z, is a significant driver. These demographics are drawn to tea's perceived health benefits, such as antioxidants and low-calorie content, compared to sugary soft drinks. Secondly, innovative product development, including a wide array of flavors, functional teas (e.g., those with added vitamins or probiotics), and sustainable packaging options (like recyclable PET bottles), are attracting new consumers and boosting sales. Thirdly, the growing prevalence of online retail and convenient store channels enhances accessibility, further fueling market growth. Competition is intense, with major players like Coca-Cola, PepsiCo, and Nestle vying for market share alongside smaller, specialized brands focusing on niche segments like organic or artisanal teas. While the market faces challenges, such as price fluctuations in raw materials and potential negative impacts from economic downturns, the overall outlook remains positive, indicating sustained growth in the coming years. The segmentation of the US RTD tea market reveals further insights. Iced tea remains a dominant category, but green tea and herbal tea segments are rapidly gaining traction due to their associated health benefits. In terms of packaging, PET bottles dominate due to their cost-effectiveness and recyclability, though glass bottles and metal cans maintain a presence in the premium segment. Distribution channels are diverse, with supermarkets and hypermarkets leading the off-trade segment, while on-trade channels (restaurants, cafes) play a significant, albeit smaller role. While precise market size figures were not explicitly provided, a reasonable estimate considering the industry's growth trajectory and the presence of major players suggests a substantial multi-billion dollar market value in the US alone. The future of the US RTD tea market will hinge on continued innovation, effective marketing targeting health-conscious consumers, and the ongoing evolution of distribution and packaging strategies. Recent developments include: January 2023: Milo's Tea Company has announced an initial investment of over USD 130 million to construct a new plant and distribution centre in Spartanburg County, South Carolina. This new investment is a direct response to the growth of Milo's brand. Milo expects to start producing its famous tea and lemonade in the fall of 2024.January 2023: Lipton Tea partnered with Full Cart, a program within the nonprofit U.S. Hunger, and a virtual food pantry, to enhance access to heart-friendly nutrition and grocery assistance.December 2022: Pure Leaf rolled out a limited-edition Merry Mint Iced Tea, coinciding with the release of the Christmas movie 'Christmas Class Reunion'. This mint-flavored iced tea was simultaneously launched through a social media giveaway, enhancing the movie-watching experience for consumers.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.