Europe Ready to Drink Tea - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)
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).
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.
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 Market Trends
RTD teas are viewed as a more nutritious option than carbonated soft drinks and other sugary beverages, which is driving up sales
Consumers are developing an affinity RTD tea, which offers enhanced convenience, thus, providing a suitable, convenient, and healthy alternative to juices and carbonates.
Manufacturers are focusing on offering RTD herbal tea in order to expand their customer base as people have become health conscious.
Changing consumer habits and the development of grocery retailers are shaping up the private label segment of the tea and coffee market across Europe.
Beverages with these functional benefits typically are marketed toward busy millennials who are looking to improve the quality of their sleep and increase their energy.
Europe Ready to Drink Tea Industry Overview
The Europe Ready to Drink Tea Market is fragmented, with the top five companies occupying 16.32%. The major players in this market are Danone S.A., Hermann Pfanner Getrдnke GmbH, Nestle S.A., PepsiCo, Inc. and The Coca-Cola Company (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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.
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 Market Trends
RTD teas are viewed as a more nutritious option than carbonated soft drinks and other sugary beverages, which is driving up sales
Consumers are developing an affinity RTD tea, which offers enhanced convenience, thus, providing a suitable, convenient, and healthy alternative to juices and carbonates.
Manufacturers are focusing on offering RTD herbal tea in order to expand their customer base as people have become health conscious.
Changing consumer habits and the development of grocery retailers are shaping up the private label segment of the tea and coffee market across Europe.
Beverages with these functional benefits typically are marketed toward busy millennials who are looking to improve the quality of their sleep and increase their energy.
Europe Ready to Drink Tea Industry Overview
The Europe Ready to Drink Tea Market is fragmented, with the top five companies occupying 16.32%. The major players in this market are Danone S.A., Hermann Pfanner Getrдnke GmbH, Nestle S.A., PepsiCo, Inc. and The Coca-Cola Company (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 EXECUTIVE SUMMARY & KEY FINDINGS
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Consumer Buying Behaviour
4.2 Innovations
4.3 Brand Share Analysis
4.4 Regulatory Framework
5 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VALUE IN USD AND VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Soft Drink Type
5.1.1 Green Tea
5.1.2 Herbal Tea
5.1.3 Iced Tea
5.1.4 Other RTD Tea
5.2 Packaging Type
5.2.1 Aseptic packages
5.2.2 Glass Bottles
5.2.3 Metal Can
5.2.4 PET Bottles
5.3 Distribution Channel
5.3.1 Off-trade
5.3.1.1 Convenience Stores
5.3.1.2 Online Retail
5.3.1.3 Supermarket/Hypermarket
5.3.1.4 Others
5.3.2 On-trade
5.4 Country
5.4.1 Belgium
5.4.2 France
5.4.3 Germany
5.4.4 Italy
5.4.5 Netherlands
5.4.6 Russia
5.4.7 Spain
5.4.8 Turkey
5.4.9 United Kingdom
5.4.10 Rest of Europe
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Arizona Beverages USA LLC
6.4.2 Carrefour S.A.
6.4.3 Danone S.A.
6.4.4 Edeka Group
6.4.5 Hermann Pfanner Getrдnke GmbH
6.4.6 Keurig Dr Pepper, Inc.
6.4.7 Nestle S.A.
6.4.8 PepsiCo, Inc.
6.4.9 Rauch Fruchtsдfte GmbH & Co OG
6.4.10 Suntory Holdings Limited
6.4.11 Tata Consumer Products Ltd
6.4.12 The Coca-Cola Company
7 KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Consumer Buying Behaviour
4.2 Innovations
4.3 Brand Share Analysis
4.4 Regulatory Framework
5 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VALUE IN USD AND VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Soft Drink Type
5.1.1 Green Tea
5.1.2 Herbal Tea
5.1.3 Iced Tea
5.1.4 Other RTD Tea
5.2 Packaging Type
5.2.1 Aseptic packages
5.2.2 Glass Bottles
5.2.3 Metal Can
5.2.4 PET Bottles
5.3 Distribution Channel
5.3.1 Off-trade
5.3.1.1 Convenience Stores
5.3.1.2 Online Retail
5.3.1.3 Supermarket/Hypermarket
5.3.1.4 Others
5.3.2 On-trade
5.4 Country
5.4.1 Belgium
5.4.2 France
5.4.3 Germany
5.4.4 Italy
5.4.5 Netherlands
5.4.6 Russia
5.4.7 Spain
5.4.8 Turkey
5.4.9 United Kingdom
5.4.10 Rest of Europe
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Arizona Beverages USA LLC
6.4.2 Carrefour S.A.
6.4.3 Danone S.A.
6.4.4 Edeka Group
6.4.5 Hermann Pfanner Getrдnke GmbH
6.4.6 Keurig Dr Pepper, Inc.
6.4.7 Nestle S.A.
6.4.8 PepsiCo, Inc.
6.4.9 Rauch Fruchtsдfte GmbH & Co OG
6.4.10 Suntory Holdings Limited
6.4.11 Tata Consumer Products Ltd
6.4.12 The Coca-Cola Company
7 KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
