RTD Beverages Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 361.01 Billion |
| Market Size (2029) | USD 456.60 Billion |
| CAGR (2024 - 2029) | 4.81 % |
| Fastest Growing Market | South America |
| Largest Market | Asia |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
RTD Beverages Market Analysis
The Ready To Drink Beverages Market size is estimated at USD 361.01 billion in 2024, and is expected to reach USD 456.60 billion by 2029, growing at a CAGR of 4.81% during the forecast period (2024-2029).
Due to rising health and wellness trends, consumers, especially fitness enthusiasts, gravitate toward ready-to-drink beverages with functional benefits. Functional ready-to-drink beverages are a good source of antioxidants, protein, and probiotics with no to low sugar. Dairy-free and vegan drinks are increasingly gaining traction among lactose-intolerant people as healthy on-the-go beverages. Ready-to-drink tea is expected to be the next functional crowd-pleaser as its various types, like iced, herbal, and black, are introduced to serve the vast consumer base worldwide. According to IWSR data, the proportion of RTD consumers drinking RTDs more than once a week increased from 39% in 2022 to 43% in 2023.
In addition, manufacturers are innovating low-calorie products or adding zero-calorie sweeteners like stevia. They also incorporate herbs and ayurvedic ingredients into their products to increase their functionality. This, along with the increasing diabetic population worldwide, is anticipated to drive the demand for these drinks as an alternative to carbonated beverages. According to WHO, in 2023, over 422 million people were living with diabetes.
RTD Beverages Market Trends
Rising Demand for RTD Coffee With the Rising Working Population Across the World Demanding Convenient RTD Coffee
Demand for RTD coffee is increasing due to rising health concerns. People are looking for convenient drinks that are alternatives to carbonated beverages. Sustainable packaging is one of the major concerns nowadays for consumers; they are demanding recycled aluminum cans as these cans are the least environmentally damaging single-use containers, which save 95% of the energy used to make a new aluminum can. No new material needs to be mined or transported. Key players, such as The Coca-Cola Company, Nestle SA, Suntory Beverage and Food, and Starbucks Corporation, are continuously innovating the packaging of their products. For instance, in 2022, 92% of coffee lovers in the United States stated that they gave high importance to coffee for its health benefits. Similarly, 76% of the Japanese population stated they consumed coffee as a healthy beverage in 2022.
In addition, different coffee blends and flavorings appeal to diverse tastes, ranging from classic black coffee to various flavored options like vanilla, hazelnut, caramel, and mocha. According to Ruigrok NetPanel National Coffee Report, in 2022, the Netherlands, being one of the major consumers of coffee, stated that about 45% of the population prefers black coffee, while a further 25% of the coffee drinkers indicated they prefer to drink cappuccino. As of 2023, 65% of people in the United States take coffee daily, compared to just 55% who consume bottled water.
Asia-Pacific Dominates the Industry
The growing population in the region, the rising health consciousness among individuals, and the increasing per capita income are some major factors driving the demand for ready-to-drink beverages in Asia-Pacific. Moreover, energy drinks with less sugar and natural components are expected to thrive and keep drawing the interest of more people suffering from medical issues like diabetes. According to the International Diabetes Federation, in 2021, around 140.87 million people had diabetes in China. Due to the rising incidence of lifestyle diseases, consumers opt for naturally sweetened or sugar-free ready-to-drink beverages. Moreover, people getting involved in fitness activities are fueling the demand for energy drinks in the region. For instance, around 50 lakh Indians went to gyms or fitness centers in 2023. The number is increasing with the increased fitness concerns among the adult population in the country, which is propelling the sales of energy drinks.
In addition, the companies are introducing innovative products to maintain competitiveness in the market. For instance, in 2023, India's Beyond Water launched its first ready-to-drink (RTD) iced tea in India, tapping on high-quality tea sourcing and consumers demand for healthier beverages. Moreover, the regional players focus on expanding their distribution channels and developing unique products with lucrative packaging styles.
RTD Beverages Industry Overview
The RTD beverages market is highly competitive, with global players. The key players in the market studied are PepsiCo Inc., Keurig Dr Pepper Inc., Danone SA, The Coca-Cola Company, and Red Bull GmbH, which are leading players operating in the ready-to-drink beverages market. Companies are focusing on the sustainability of products, packaging, mergers, and acquisitions to strengthen their supply chain and expand their business. The emerging smart advertisements and other marketing activities by manufacturers coupled with products launched with functional benefits have further increased the sales percentage of companies globally.
RTD Beverages Market Leaders
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PepsiCo Inc.
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The Coca-Cola Company
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Red Bull GmbH
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Danone S.A.
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Keurig Dr Pepper Inc.
*Disclaimer: Major Players sorted in no particular order
RTD Beverages Market News
- April 2024: PepsiCo India launched its new limited edition energy drink with a new lineup of blue current-flavored Sting.
- March 2024: Starbucks launched new flavor drinks: Oatmilk Frappuccino Chilled Coffee Drink and new flavors of Starbucks® Cold Brew and Starbucks® Multi-serve Cold Brew in the US market.
- October 2023: India's Beyond Water introduced ready-to-drink (RTD) iced tea in two innovative flavors: peach and lemon.
- September 2023: Tata Consumer Products entered the energy drink market with the launch of Say Never drink, which was launched in two variants, red and blue.
- February 2023: PepsiCo launched marshmallow-flavored cola in partnership with Peeps. The pillowy-soft marshmallow cola flavor, paired with the instantly recognizable PEEPS®, comes in vibrant yellow packaging.
Ready to Drink Beverages Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Inclination Toward Low-Sugar/Sugar-free Beverages
4.1.2 Rising Demand for RTD Beverages with Longer Shelf Life and Convenience Factors
4.2 Market Restraints
4.2.1 Preservatives Present in the Drinks Restraining the Growth
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Tea
5.1.2 Coffee
5.1.3 Energy Drinks
5.1.4 Yogurt Drinks
5.1.5 Dairy and Dairy Alternative Beverages
5.1.6 Flavored and Fortified Water
5.1.7 Other Product Types
5.2 By Distribution Channel
5.2.1 Supermarkets/Hypermarkets
5.2.2 Convenience/Grocery Stores
5.2.3 Online Stores
5.2.4 Specialty Retail Stores
5.2.5 Other Distribution Channels
5.3 By Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 Italy
5.3.2.4 Spain
5.3.2.5 France
5.3.2.6 Russia
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 South Africa
5.3.5.2 Saudi Arabia
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Red Bull GmbH
6.3.2 Pepsico Inc.
6.3.3 Monster Beverage Corporation
6.3.4 The Coca-Cola Company
6.3.5 Yakult Honsha Co. Ltd
6.3.6 Nestle SA
6.3.7 Danone SA
6.3.8 Suntory Holdings Limited
6.3.9 Keurig Dr Pepper Inc.
6.3.10 Asahi Group Holdings Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
RTD Beverages Industry Segmentation
Ready-to-drink beverages are a packaged form of drinks that are sold in the prepared form and are ready for consumption.
The ready-to-drink beverages market is segmented into product type, distribution channel, and geography. By product type, the market is segmented into tea, coffee, energy drinks, yogurt drinks, dairy and dairy alternative beverages, flavored and fortified water, and other product types. By distribution channel, the market is segmented into supermarkets/hypermarkets, convenience/grocery stores, online stores, specialty retail stores, and other distribution channels. Based on geography, the market is segmented into North America (United States, Canada, Mexico, and Rest of North America), Europe (Spain, United Kingdom, Germany, France, Italy, Russia, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of Asia-Pacific), South America (Brazil, Argentina, and Rest of South America), and Middle East and Africa (South Africa, Saudi Arabia, and Rest of Middle East and Africa).
For each segment, the market sizing and forecasts have been done based on value (USD).
| By Product Type | |
| Tea | |
| Coffee | |
| Energy Drinks | |
| Yogurt Drinks | |
| Dairy and Dairy Alternative Beverages | |
| Flavored and Fortified Water | |
| Other Product Types |
| By Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Convenience/Grocery Stores | |
| Online Stores | |
| Specialty Retail Stores | |
| Other Distribution Channels |
| By Geography | |||||||||
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Ready to Drink Beverages Market Research FAQs
How big is the Ready To Drink Beverages Market?
The Ready To Drink Beverages Market size is expected to reach USD 361.01 billion in 2024 and grow at a CAGR of 4.81% to reach USD 456.60 billion by 2029.
What is the current Ready To Drink Beverages Market size?
In 2024, the Ready To Drink Beverages Market size is expected to reach USD 361.01 billion.
Who are the key players in Ready To Drink Beverages Market?
PepsiCo Inc., The Coca-Cola Company, Red Bull GmbH, Danone S.A. and Keurig Dr Pepper Inc. are the major companies operating in the Ready To Drink Beverages Market.
Which is the fastest growing region in Ready To Drink Beverages Market?
South America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Ready To Drink Beverages Market?
In 2024, the Asia accounts for the largest market share in Ready To Drink Beverages Market.
What years does this Ready To Drink Beverages Market cover, and what was the market size in 2023?
In 2023, the Ready To Drink Beverages Market size was estimated at USD 343.65 billion. The report covers the Ready To Drink Beverages Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Ready To Drink Beverages Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Ready to Drink Beverages Industry Report
Statistics for the 2024 Ready to Drink Beverages market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Ready to Drink Beverages analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Ready to Drink Beverages Market Report Snapshots
