Ready To Drink (RTD) Market By Product Type (Tea, Coffee, Juices, Alcoholic Beverages, Energy & Sports Drinks, Bottled Water, Carbonated Soft Drinks, Dairy, and Alternate Dairy Beverages), By Distribution Channel (Supermarkets & Hypermarkets, Specialty Stores, Convenience Stores, and Online)- Global Analysis & Forecast 2020-2030
Report ID : 330 | Published Date : Jul 2020 | Pages : 160 | Region : Global | Report Code : FB-30
Ready To Drink Market Overview and Introduction
RTD refers to ready to drink beverages that do not require any mixing, diluting, or blending. These products are in the prepared form and are ready for consumption. RTD beverages range from bottled tea & coffee, canned sodas, juices in pouches, bottled water, flavored milk to yogurt drinks and canned wines & cocktails.
The changing lifestyle and rising consumption of on-the-go products stands be among the key drivers influencing the market demand for the RTD beverages market. The demand for convenience drinks is on a rise and with the rising number of working populations and nuclear families, consumers are looking for convenience food products. Additionally, with increasing preferences for functional RTDs that include probiotics, antioxidants, and protein-rich drinks, among others, are on the rise. For instance, the growing demand for kombucha can be one such example, which is supplementing the market growth. Furthermore, the consumption of RTD tea and coffee is further supplementing market growth. Additionally, new product launches in this category are offering wider choices to consumers, creating new market opportunities. For instance, in 2019, Coca Cola introduced chilledready to drink canned coffee with reduced calorie count. Similarly, Danone introduced two plant-based RTD latte varieties by combing oat and almond milks with coffee.
In terms of market barriers, fluctuating prices of key ingredients used in themanufacture of such beverages pose a major challenge. Furthermore, low product availability and consumer awareness & acceptance are other challenges present in the market. Additionally, the outbreak of COVID-19 is also likely to pose manufacturing challenges in the beverage industry, which will deter market growth in the coming years.
The global RTD market is segmented by product type, distribution channel, and region.
Ready to Drink Market By Product Type
Based onproduct type, the market can besegmented into tea, coffee, juices, alcoholic beverages, energy & sports drinks, bottled water, carbonated soft drinks, dairy, and alternative dairy beverages. Among these, the RTD coffee & tea segment is expected to witness strong demand in the coming years. Factors such as tea & coffee consumption culture globally, infusion of functional properties, the launch of varieties of products by manufacturers and the growing demand for on-the-go beverages are some of the key factors contributing to market growth. The demand for RTD alcoholic beverages is on a rise in western countries and is expected to witness higher growth trends in the coming years. For instance, the demand for canned wines and cocktails issurging and with the addition of different product offerings by companies, the sale of RTD alcoholic beverages isfurther expected to rise in the coming years. For instance, Oregon’s Rogue Ales & Spirits introduced canned cocktails in three flavors- Cranberry Elderflower Vodka Soda, Cucumber Lime Gin Fizz, and Ginger Lime Vodka Mule.
Ready To Drink Market By Distribution Channel
Based on distribution channel, the RTD market can be segmented into supermarkets & hypermarkets, specialty stores, convenience stores, online, and others. Among these, the hypermarkets & supermarkets segment is expected to dominate the market during the forecast period. Factors, such as the wide availability of products at lower cost along with growing establishment stand to among the key driving factors. Additionally, exclusive launches by companies with leading stores, such as Tesco,are further expected to drive market sales owing to the large number of footfalls witnessed in these stores.
Ready To Drink Market By Region
North America and Europe were the key markets for RTD beverages in 2019. Busy life schedules and the high adoption of RTD products among millennial populations are some of the key success factors in the market. Additionally, the launch of different RTD products with additional functional benefits willfurther contributeto market growth. Asia Pacific is expected to witness the fastest growth in the coming years owing to the rising discretionary income, growing awareness & acceptability of RTD beverages along with theincreasing proliferation of western brands in leading hypermarkets and supermarkets. Additionally, regional players, such as Xiang piaopiao andWei Chuan, are introducing new varieties in the market to meet the changing tastes and preferences of consumers.
Ready To Drink Market Prominent Players
Some of the prominent players in the global RTD market are The Coca-Cola Company, PepsiCo, Nestlé, Starbucks Coffee Company., Danone S.A., KeurigDr Pepper Inc, Unilever, SUNTORY HOLDINGS LIMITED., RED BULL, and Vitasoy International Holdings Limited, among others.