Ready-to-Drink (RTD) Coffee & Tea - China

China

Highlights

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Ready-to-Drink (RTD) Coffee & Tea market amounts to US$27.23bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$3.62bn in 2024.
Revenue, combined amounts to US$30.85bn in 2024.
The revenue, at home is expected to grow annually by 3.80% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated Japan (US$32bn in 2024).
In relation to total population figures, the average revenue per capita, at home of US$19.01 are generated in 2024.
In the Ready-to-Drink (RTD) Coffee & Tea market, volume, at home is expected to amount to 9.66bn L by 2024.
Volume, out-of-home is expected to amount to 948.30m L in 2024.
Volume, combined is expected to amount to 10.61bn L in 2024.
The Ready-to-Drink (RTD) Coffee & Tea market is expected to show a volume growth, at home of 3.0% in 2025.0.
The average volume per person, at home in the Ready-to-Drink (RTD) Coffee & Tea market is expected to amount to 6.74L in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Ready-to-Drink (RTD) Coffee & Tea market in China has been experiencing significant growth in recent years.

Customer preferences: Chinese consumers are increasingly seeking convenient and on-the-go beverage options, which has fueled the demand for ready-to-drink coffee and tea products. The busy urban lifestyle and the growing number of young professionals in China have contributed to the popularity of RTD beverages. Additionally, the rising health consciousness among consumers has led to a shift towards healthier beverage choices, such as low-sugar and natural ingredient options.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in China is the emergence of innovative flavors and product varieties. Manufacturers are introducing unique and exotic flavors to cater to the diverse taste preferences of Chinese consumers. This trend is driven by the increasing demand for novel and premium beverage options. Another trend in the market is the growing popularity of functional RTD coffee and tea products. Manufacturers are incorporating functional ingredients, such as vitamins, antioxidants, and probiotics, into their products to offer additional health benefits. This trend is in line with the rising health and wellness trend among Chinese consumers.

Local special circumstances: China has a rich tea culture, and tea has been a traditional beverage in the country for centuries. This cultural preference for tea has influenced the RTD Coffee & Tea market in China, with tea-based RTD beverages being more popular than coffee-based ones. However, the growing influence of Western culture and the increasing coffee consumption among young consumers have also contributed to the growth of the RTD coffee segment in the country.

Underlying macroeconomic factors: The rapid urbanization and rising disposable income in China have played a significant role in the growth of the RTD Coffee & Tea market. As more people migrate to cities and their purchasing power increases, they are more willing to spend on convenient and premium beverage options. Furthermore, the increasing penetration of e-commerce platforms and the widespread use of mobile payment systems have made it easier for consumers to access and purchase RTD coffee and tea products. The convenience and accessibility offered by online channels have further fueled the growth of the market. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in China is experiencing growth due to changing customer preferences, including the demand for convenience and healthier beverage options. The market is characterized by trends such as the introduction of innovative flavors and functional products. The cultural preference for tea and the influence of Western coffee culture are important factors shaping the market. The rapid urbanization, rising disposable income, and the increasing adoption of e-commerce platforms are underlying macroeconomic factors driving the growth of the market.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.