Leading Brands in Global Ready to Drink Tea and Coffee Market Exploring Mergers and Acquisitions to Gain Lion’s Share

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Ready To Drink (RTD) Tea And Coffee
Market - Global Industry Size, Market
Share, Trends, Analysis And Forecast,
2012 - 2018
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REPORT DESCRIPTION
In response to the changing lifestyle, the preferences of consumers have also dramatically changed. The rising willingness of
people to spend on ready-to-eat options has proven a major boon for the food and beverages industry. The demand for ready to
drink (RTD) tea and coffee has thus considerably increased in the last few years. The market is also expected to gain
considerable momentum as ready to drink tea emerges as a new staple in beverages.
Q: How is urbanization responsible for driving growth in RTD tea and coffee market?
A: As per a report published by the Tea Association of the U.S., tea is the second-most highly consumed beverage in the world.
The industry has significantly benefited from the proliferation of non-traditional retail outlets such as mass merchandise,
warehouse club, drug stores, convenience stores, and gas marts. In the ready to drink tea market, the iced tea segment has
exhibited growth at an impressive rate in the last few years. The market has also substantially benefitted from the introduction
of functional beverages and the increasing urbanization.
Emerging economies in Asia Pacific and Central and South America have proven especially lucrative for the global ready to drink
tea and coffee market. Furthermore, consumers nowadays are more informed about the antioxidant properties of tea and the
health benefits, such as such as instant energy boost and low calories, it offers. This has subsequently led to a paradigm shift in
consumer preference from carbonated drinks to healthier beverages such as tea and coffee. The demand from the market for
RTD tea and coffee is therefore being fuelled considerably.
Besides this, the café culture has become quite popular among the urban youth, which has been significantly aiding the
expansion of the global RTD tea and coffee market. The success of coffee chains has prompted tea vendors to diversify their
production and marketing strategies. Numerous cafes are thus launched offering tea- and coffee-based drinks with health
benefits. This has helped in augmenting demand from the global market for RTD tea and coffee.
Q: How are major players operating in the market gearing to battle for higher revenues?
A: Coca-Cola Co. and PepsiCo. Inc are clearly the best known players in the global ready to drink tea and coffee market. These
companies collectively hold a substantial share in market, much of which is obtained through their partnership with Unilever,
which also owns Lipton. As per a recent CNBC report, PepsiCo gained a lead over Coca-Cola Co. in 2014 with its offering called
Pure Leaf, which witnessed an exponential 49% surge in sales in that year. Apart from entering into partnerships, these
companies are capitalizing on the rising health consciousness of consumers to gain competitiveness in the market.
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Leveraging mergers as a winning strategy, one of the leading vendors in the RTD tea and beverages market, Starbucks
Corporation, has joined forces with Anheuser-Busch in June 2016. These two companies will produce and distribute RTD Teavana
tea to take on competing brands. Teavana tea is expected to be launched first in the U.S. in the first half of 2017. Earlier,
Teavana was acquired by Starbucks in 2012 in a bid to expand its reach in the tea market.
Mergers and acquisitions have therefore emerged as potent solutions for vendors to gain the lion’s share in the global RTD tea
and coffee market.
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In response to the changing lifestyle, the preferences of consumers have also dramatically changed. The rising willingness of people to spend on ready-to-eat options has proven a major boon for the food and beverages industry. The demand for ready to drink (RTD) tea and coffee has thus considerably increased in the last few years. The market is also expected to gain considerable momentum as ready to drink tea emerges as a new staple in beverages. Browse Full Report With ToC:http://www.transparencymarketresearch.com/ready-to-drink.html