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Europe Ready to Drink Tea Market Size

The Europe Ready to Drink Tea Market is experiencing significant growth, driven by increasing consumer awareness of health benefits and a shift towards healthier lifestyle choices. The market's expansion is particularly notable in the iced tea segment, which dominates due to its popularity during hot weather. Supermarkets and hypermarkets play a crucial role in retail, offering a wide range of products. Innovations in flavors and packaging are key drivers of growth, with the herbal tea segment emerging rapidly. Germany and France are prominent markets, with a strong focus on low-sugar and functional beverages, reflecting the health-conscious preferences of consumers.

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Market Size of europe ready to drink tea Industry

Europe Ready to Drink Tea Market Summary
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svg icon Study Period 2018 - 2030
svg icon Market Size (2024) USD 10.93 Billion
svg icon Market Size (2030) USD 18.76 Billion
svg icon Largest Share by Soft Drink Type Iced Tea
svg icon CAGR (2024 - 2030) 9.42 %
svg icon Largest Share by Country Germany
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Europe Ready to Drink Tea Market Analysis

The Europe Ready to Drink Tea Market size is estimated at 10.93 billion USD in 2024, and is expected to reach 18.76 billion USD by 2030, growing at a CAGR of 9.42% during the forecast period (2024-2030).

10.93 Billion

Market Size in 2024 (USD)

18.76 Billion

Market Size in 2030 (USD)

7.13 %

CAGR (2018-2023)

9.42 %

CAGR (2024-2030)

Largest Segment by Soft Drink Type

58.51 %

value share, Iced Tea, 2023

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Growing preference towards flavored variants of RTD tea including innovative flavors like chamomile, jasmine and more is increasing the popularity of the segment

Fastest-growing segment by Soft Drink Type

10.39 %

Projected CAGR, Herbal Tea, 2024-2030

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Herbal tea is growing in popularity with a heightened consumer focus on achieving optimal health outcomes, for people suffering from diabetes and liver issues

Leading Market Player

6.24 %

market share, PepsiCo, Inc., Inc.

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PepsiCo, partnered with several manufacturers like Lipton, Unilever, Brisk and Starbucks is allowing the company to gain greater foothold in the RTD tea market in Europe.

Largest Segment by Country

25.69 %

value share, Germany, 2023

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Consumers in the country are observed to be getting more inclined towards beverages that provide good functional and health benefits, giving opportunity for RTD tea.

Fastest-growing segment by Country

11.92 %

Projected CAGR, Germany, 2024-2030

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Expansion and penetration of e-commerce channels in Germany are providing a good future growth opportunity for RTD tea, owing to a wider and more affordable array of products coupled with easy shopping options

Rising number of health-conscious consumers is propelling the RTD tea market’s growth

  • The European RTD tea market witnessed a 29.38% surge in value in 2023 compared to 2020. This growth can be attributed to the rising awareness among consumers of the health benefits associated with RTD tea. This awareness has spurred consumer interest in adopting healthier lifestyles, with RTD tea being recognized for aiding weight loss and reducing the risk of heart attacks. In 2022, Germany alone recorded 1.21 million heart attacks.
  • Between 2018 and 2023, the consumption of iced tea in Europe peaked during hot weather. Notably, the iced tea segment dominates the European RTD tea market. To retain their consumer base, producers are adopting varied pricing strategies. In 2023, the base selling price of iced tea in Germany stood at USD 5.21.
  • By value, the herbal tea segment is emerging as the fastest-growing in the European RTD tea market. From 2024 to 2027, this segment is expected to maintain a steady CAGR of 4.57%. The surge in demand for functional and flavorful beverages, coupled with the introduction of contemporary flavors, has fueled the growth of the herbal tea market in Europe.
  • Supermarkets and hypermarkets dominate the retail landscape, accounting for a significant 50.19% share by value in 2023. These retail giants, with their expansive infrastructure, can accommodate a diverse range of RTD tea beverages, spanning various packaging formats and brands.
  • Over the coming years, from 2024 to 2027, the European RTD tea market is projected to witness a robust growth rate of 41.88% by value. This growth will largely be driven by increasing innovations by RTD tea manufacturers, particularly in terms of flavors and packaging.
Europe Ready to Drink Tea Market

Rising health concerns among consumers are driving the sales of functional RTD drinks in the region

  • Between 2019 and 2023, the ready-to-drink (RTD) tea market in Europe witnessed a robust growth of 25.82% in sales. This surge can be attributed to rising health and wellness trends, a focus on sustainability, and cultural influences, leading to a flurry of product launches in the RTD category. Notable brands capitalizing on this trend in the region include Nestea, Arizona Beverages, Fuze Tea, Tetley, and Tea Pigs.
  • Germany emerged as the dominant player in the European market, driven by a rising preference among health-conscious consumers for RTD teas with lower sugar content, natural sweeteners, and perceived health benefits like antioxidants. With a significant obesity rate, with 53.5% of the population (46.6% women and 60.5% men) being overweight in 2022, German consumers are increasingly gravitating toward sugar-free or low-calorie options, including RTD teas. This shift is further fueled by the introduction of functional ingredient-infused beverages. Consequently, the sales value of RTD tea in Germany increased by an impressive 40.59% from 2018 to 2023.
  • France, alongside Germany, stands out as a key growth market and is projected to witness a notable CAGR of 12.31% in value from 2024 to 2030. This growth is driven by a rising preference for healthier dietary choices among the populace. Notably, the younger demographic is increasingly embracing RTD teas, driven by a demand for clean-label products. In response, manufacturers are innovating at the ingredient level, exploring combinations, and introducing new flavors to cater to this health-conscious consumer base.

Europe Ready to Drink Tea Industry Segmentation

Green Tea, Herbal Tea, Iced Tea are covered as segments by Soft Drink Type. Aseptic packages, Glass Bottles, Metal Can, PET Bottles are covered as segments by Packaging Type. Off-trade, On-trade are covered as segments by Distribution Channel. Belgium, France, Germany, Italy, Netherlands, Russia, Spain, Turkey, United Kingdom are covered as segments by Country.

  • The European RTD tea market witnessed a 29.38% surge in value in 2023 compared to 2020. This growth can be attributed to the rising awareness among consumers of the health benefits associated with RTD tea. This awareness has spurred consumer interest in adopting healthier lifestyles, with RTD tea being recognized for aiding weight loss and reducing the risk of heart attacks. In 2022, Germany alone recorded 1.21 million heart attacks.
  • Between 2018 and 2023, the consumption of iced tea in Europe peaked during hot weather. Notably, the iced tea segment dominates the European RTD tea market. To retain their consumer base, producers are adopting varied pricing strategies. In 2023, the base selling price of iced tea in Germany stood at USD 5.21.
  • By value, the herbal tea segment is emerging as the fastest-growing in the European RTD tea market. From 2024 to 2027, this segment is expected to maintain a steady CAGR of 4.57%. The surge in demand for functional and flavorful beverages, coupled with the introduction of contemporary flavors, has fueled the growth of the herbal tea market in Europe.
  • Supermarkets and hypermarkets dominate the retail landscape, accounting for a significant 50.19% share by value in 2023. These retail giants, with their expansive infrastructure, can accommodate a diverse range of RTD tea beverages, spanning various packaging formats and brands.
  • Over the coming years, from 2024 to 2027, the European RTD tea market is projected to witness a robust growth rate of 41.88% by value. This growth will largely be driven by increasing innovations by RTD tea manufacturers, particularly in terms of flavors and packaging.
Soft Drink Type
Green Tea
Herbal Tea
Iced Tea
Other RTD Tea
Packaging Type
Aseptic packages
Glass Bottles
Metal Can
PET Bottles
Distribution Channel
Off-trade
Convenience Stores
Online Retail
Supermarket/Hypermarket
Others
On-trade
Country
Belgium
France
Germany
Italy
Netherlands
Russia
Spain
Turkey
United Kingdom
Rest of Europe
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Europe Ready to Drink Tea Market Size Summary

The European ready-to-drink (RTD) tea market is experiencing significant growth, driven by increasing consumer awareness of the health benefits associated with these beverages. This trend is particularly evident in the rising demand for iced and herbal teas, which are gaining popularity due to their perceived health advantages, such as aiding weight loss and reducing heart attack risks. The market is characterized by a diverse range of flavors and packaging innovations, with major retail channels like supermarkets and hypermarkets playing a crucial role in distribution. The market's expansion is further supported by a shift towards healthier, low-sugar, and functional beverages, appealing to health-conscious consumers across the region.

Germany and France are key markets within Europe, with Germany leading due to its focus on sugar-free and low-calorie options, while France is witnessing a growing preference for clean-label products among younger consumers. The market is fragmented, with major players like Danone, Nestle, and Coca-Cola holding significant shares. The introduction of private-label products and collaborations, such as Carrefour's partnership with Uber Eats, highlights the dynamic nature of the market. As consumer habits evolve, manufacturers are increasingly targeting busy millennials with functional beverages that offer convenience and health benefits, further propelling market growth.

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Europe Ready to Drink Tea Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)

    1. 1.1 Soft Drink Type

      1. 1.1.1 Green Tea

      2. 1.1.2 Herbal Tea

      3. 1.1.3 Iced Tea

      4. 1.1.4 Other RTD Tea

    2. 1.2 Packaging Type

      1. 1.2.1 Aseptic packages

      2. 1.2.2 Glass Bottles

      3. 1.2.3 Metal Can

      4. 1.2.4 PET Bottles

    3. 1.3 Distribution Channel

      1. 1.3.1 Off-trade

        1. 1.3.1.1 Convenience Stores

        2. 1.3.1.2 Online Retail

        3. 1.3.1.3 Supermarket/Hypermarket

        4. 1.3.1.4 Others

      2. 1.3.2 On-trade

    4. 1.4 Country

      1. 1.4.1 Belgium

      2. 1.4.2 France

      3. 1.4.3 Germany

      4. 1.4.4 Italy

      5. 1.4.5 Netherlands

      6. 1.4.6 Russia

      7. 1.4.7 Spain

      8. 1.4.8 Turkey

      9. 1.4.9 United Kingdom

      10. 1.4.10 Rest of Europe

Europe Ready to Drink Tea Market Size FAQs

The Europe Ready to Drink Tea Market size is expected to reach USD 10.93 billion in 2024 and grow at a CAGR of 9.42% to reach USD 18.76 billion by 2030.

In 2024, the Europe Ready to Drink Tea Market size is expected to reach USD 10.93 billion.

European RTD Ready to Drink Tea Market Report Snapshots

Europe Ready to Drink Tea Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030