LONDON -- The global ready-to-drink (RTD) tea and coffee market is expected to reach $116.13 billion by 2024, according to a new report by Grand View Research Inc.
The major factor promoting the RTD tea and coffee market is the rising health awareness and disposable incomes of the population, according to the report. RTD tea and coffee are perceived as instant energy drinks and also form a part of lifestyles in major countries around the world. The enhanced nutritional benefits and compatibility with different flavors is driving the demand for these products, the report said.
The changing retail scenario and rise of e-commerce as the new distribution channel is expected to boost the market demand for these products over the forecast period. The growing cafe culture and changing habits related to tastes and flavors have fueled the market demand for these products, the report said.
Further key findings from the report suggest:
- The foodservice segment is expected to be the fastest-growing distribution channel at a compound annual growth rate (CAGR) of 6.5% from 2016 to 2024. The rising trend of restaurant dining coupled with the popularity of cafes and snack parlors is expected to drive market demand. High availability of the product in remote areas is expected to propel market growth over the forecast period.
- RTD tea was the dominant product segment with a demand of more than $84 billion by 2024. The enhanced health benefits coupled with increased demand for flavored ice teas is expected to drive market growth.
- Regular price segment products are expected to experience high demand owing to various flavors and economical pricing of the product. The global market value for the regular price segment in 2015 was more than $27 billion.
- The industry is characterized by new-product development and introduction of new flavors. The launch of novel products such as mango-flavored green tea is expected to drive the industry over the forecast period.
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