Ready-to-Drink (RTD) Coffee & Tea - G7

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$62.14bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$30.78bn in 2024.
Revenue, combined amounts to US$92.92bn in 2024.
The revenue, at home is expected to grow annually by 3.00% (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$79.83 are generated in 2024.
In the Ready-to-Drink (RTD) Coffee & Tea market, volume, at home is expected to amount to 18.39bn L by 2024.
Volume, out-of-home is expected to amount to 2.96bn L in 2024.
Volume, combined is expected to amount to 21.35bn L in 2024.
The Ready-to-Drink (RTD) Coffee & Tea market is expected to show a volume growth, at home of 1.2% in 2025.0.
The average volume per person, at home in the Ready-to-Drink (RTD) Coffee & Tea market is expected to amount to 23.63L in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Ready-to-Drink (RTD) Coffee & Tea market in G7 is experiencing significant growth and development.

Customer preferences: Customers in the G7 countries are increasingly turning to ready-to-drink coffee and tea beverages due to their convenience and on-the-go nature. The fast-paced lifestyles and busy schedules of consumers in these countries have led to a growing demand for beverages that can be consumed quickly and easily. Additionally, there is a rising interest in healthier and more natural options, leading to a shift towards RTD coffee and tea products that are made with natural ingredients and have reduced sugar content.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in G7 is the increasing popularity of cold brew coffee. Cold brew coffee has gained traction among consumers due to its smooth and less acidic taste compared to traditional hot brewed coffee. This trend is particularly prominent in countries like the United States and Canada, where cold brew coffee has become a mainstream beverage and is available in various flavors and formats. Another trend in the market is the growing demand for RTD tea beverages. Tea, especially herbal and green tea, is known for its health benefits and has gained popularity among health-conscious consumers. This trend is evident in countries like Japan and the United Kingdom, where there is a wide variety of RTD tea options available, including both traditional and innovative flavors.

Local special circumstances: In Japan, the RTD Coffee & Tea market is driven by the country's strong coffee culture and the popularity of canned coffee. Canned coffee is a staple in Japan, with a wide range of flavors and brands available in convenience stores and vending machines. The convenience and accessibility of canned coffee have made it a preferred choice among consumers in Japan. In the United States, the RTD Coffee & Tea market is influenced by the growing demand for natural and organic products. Consumers in the US are increasingly seeking out beverages that are made with natural ingredients and have minimal additives. This has led to the emergence of niche brands that focus on producing organic and ethically sourced RTD coffee and tea products.

Underlying macroeconomic factors: The growth of the RTD Coffee & Tea market in G7 can be attributed to several macroeconomic factors. Firstly, the increasing urbanization and rising disposable incomes in these countries have led to a greater demand for convenient and premium beverages. Additionally, the influence of Western coffee culture and the proliferation of coffee shop chains have also contributed to the growth of the market. Lastly, the growing health and wellness trend has prompted consumers to seek out healthier alternatives to traditional carbonated soft drinks, leading to an increased demand for RTD coffee and tea beverages.

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.