Carbonated Ready-to-Drink Tea Market – Current Industry Trends, Opportunities & Challenges For 2025

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Ready- to- drink or RTD’s are a type of beverages that are sold in packed form and ready for immediate consumption.  It has been a recent trend in the western countries to consume beverages that are iced and carbonated in nature. The carbonated RTDs can be alcoholic or non-alcoholic and are usually mixed with tea to develop that flavor. The consumption of carbonates in many developed countries are diminishing, indirectly propelling the demand for other alternatives such as carbonated RTDs tea and other liquids. It has been established in the market that the taste of the carbonated ready-to-drink is refreshing and is available in the market in multiple flavor options. The sodas sold in the carbonated drinks have been stated to be unhealthy due to its presence of artificial flavors, colors and faulty sweeteners. This has heightened the demand for soft drinks manufacturers to allure its customer base with non-soda options for the health-conscious people.

The carbonated RTDs tea has been noted to be the most prosperous non-soda alternative that not only gives the drinker a fizzy vibe but is also known for its god health benefits. The growth of on this beverage is high even though it contains sugar or sweeteners and is accepted to be a healthier product that is full of antioxidants. The major driver for aiding the growth of carbonated ready-to-drink tea is the extensive investment on new product development. The new product launches are being copied by other manufacturers, helping the success of the caffeinated beverage in the market.

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The availability of carbonated RTD tea in variety of flavors and packaging bottles are driving the purchase of this drink in the market. However, in the Asian countries the tradition to drink a hot beverage, especially tea is more common as compared to any carbonated drinks. Due to the growing population of the Millennial in countries like India, China, Japan and few other Middle Eastern countries, the demand for consuming westernized products are increasing. Nevertheless, the carbonated RTD tea is full of antioxidants and contains low calorie, aiding the obese and diabetic consumers to choose as an alternative drink.

The carbonated ready-to-drink tea is segmented on the basis of packaging and distribution channel. On the basis of packaging, this beverage is available as plastic bottled or in metal cans. The metal cans are ready-to-go packs and very useful for the individuals leading a fast paced life. The bottled form of the carbonated drink can be used repeatedly and bought for household bulk consumption. Based on the distribution channel, the carbonated ready-to-drink tea is available in offline retail stores as well as online grocery stores. The offline grocery stores include supermarkets, hypermarkets, convenience stores and independent retailers. The supermarket and hypermarket stores is estimated to have an augmented growth in the future due to it stocking of variety of carbonated drinks, including different flavors and at different prices.

Geographically, carbonated ready-to-drink tea is consumed worldwide and is present in all the major regions like the North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. Amongst these, North America and Europe are the highest consumers of this type of beverage as they are reported to be more health conscious when compared to the other developing regions.

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The major players dominating the carbonate ready-to-drink market are Grupo LALA, Lactalis, Nestle, Coca-Cola, PepsiCo, Suja Juice, Starbucks, Tesco, Unilever, TeaZazz, Talking Rain and Sunny Delight Beverages Co. (SDBC) are a few among other leading producers of carbonated RTD tea in the world. These companies are constantly on the verge of experimenting with new product development in different countries and their localized tastes and preferences.

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