Ready-to-Drink (RTD) Tea - NAFTA

NAFTA

Highlights

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Ready-to-Drink (RTD) Tea market amounts to US$16.57bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$24.54bn in 2024.
Revenue, combined amounts to US$41.12bn in 2024.
The revenue, at home is expected to grow annually by 2.46% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated China (US$24bn in 2024).
In relation to total population figures, the average revenue per capita, at home of US$32.47 are generated in 2024.
In the Ready-to-Drink (RTD) Tea market, volume, at home is expected to amount to 5.31bn L by 2024.
Volume, out-of-home is expected to amount to 1.71bn L in 2024.
Volume, combined is expected to amount to 7.01bn L in 2024.
The Ready-to-Drink (RTD) Tea market is expected to show a volume growth, at home of 1.8% in 2025.0.
The average volume per person, at home in the Ready-to-Drink (RTD) Tea market is expected to amount to 10.40L in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Consumers in the NAFTA region have shown a growing preference for healthier beverage options, which has led to an increased demand for ready-to-drink tea. RTD tea is seen as a refreshing and convenient alternative to sugary carbonated drinks, and its perceived health benefits have made it a popular choice among health-conscious consumers. Additionally, the wide variety of flavors and blends available in the market caters to different taste preferences, further driving the demand for RTD tea.

Trends in the market: One of the key trends in the RTD tea market in NAFTA is the rising popularity of natural and organic products. Consumers are increasingly seeking beverages that are free from artificial additives and preservatives, and this trend is reflected in the growing demand for natural and organic RTD tea options. Manufacturers in the region are responding to this trend by introducing new product lines that emphasize natural ingredients and sustainable sourcing practices. Another trend in the market is the increasing focus on innovative packaging and branding. With the growing competition in the RTD tea market, companies are looking for ways to differentiate their products and attract consumers. This has resulted in the introduction of unique packaging designs, such as slim cans and resealable bottles, as well as creative branding strategies that target specific consumer segments.

Local special circumstances: The RTD tea market in the NAFTA region is characterized by a high level of competition. Both domestic and international players are vying for market share, leading to a wide range of product offerings and competitive pricing. This intense competition has also spurred innovation in the market, as companies strive to differentiate themselves and capture consumer attention. In addition, the diverse cultural backgrounds and preferences of consumers in the NAFTA region have influenced the variety of flavors and blends available in the market. For example, in the United States, consumers tend to prefer sweetened and flavored RTD teas, while in Mexico, there is a higher demand for traditional herbal teas. These local preferences have shaped the product offerings in each country and contributed to the overall growth of the market.

Underlying macroeconomic factors: The growing population and rising disposable incomes in the NAFTA region have played a significant role in driving the growth of the RTD tea market. As consumers become more affluent, they are willing to spend more on premium and healthier beverage options, including RTD tea. Additionally, the increasing urbanization and busy lifestyles in the region have led to a greater demand for convenient and on-the-go beverage solutions, further fueling the growth of the market. Furthermore, the NAFTA region has witnessed a shift in consumer attitudes towards health and wellness. With an increasing emphasis on leading a healthy lifestyle, consumers are actively seeking out products that align with their wellness goals. RTD tea, with its natural and perceived health benefits, has emerged as a popular choice among health-conscious consumers, driving the growth of the market. In conclusion, the Ready-to-Drink (RTD) Tea market in NAFTA is experiencing growth and development due to changing customer preferences, including a preference for healthier beverage options and a demand for natural and organic products. Innovative packaging and branding strategies are also driving the market, while local preferences and intense competition contribute to the overall growth. Underlying macroeconomic factors, such as population growth, rising disposable incomes, and a growing focus on health and wellness, further support the development 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.