Tea party: Health-conscious consumers and product development will drive industry demand

The Ready-to-Drink (RTD) Tea Production industry produces tea beverages that are packaged and ready for consumption. Bolstered by rising health consciousness and improving disposable income, demand for industry products has been growing. As consumers turn away from sugary beverages such as soda, tea has become a favored alternative. Additionally, according to the Tea Association of the USA, RTD tea is the most popular way tea is consumed in the United States. As industry revenue grows, new companies are rapidly entering the industry. The industry continues to attract new consumers thanks to the growing variety of flavors, strengths and sweeteners offered by manufacturers. Fast-growing niche products such as kombucha and mate are attracting new industry entrants...purchase to read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 12-17
3.3%
Forecast Growth 17-22
Profit
Employment
6,387
Businesses
274

Industry Threats & Opportunities

  • Perceived health benefits and new product developments will drive revenue growth
  • The rise of new niche products, such as kombucha and mate tea, has contributed to the industry's growth
  • Improving global macroeconomic conditions will support industry revenue growth
  • Industry Report - Industry Locations Chapter

    The geographic distribution of establishments that primarily manufacture RTD tea is aligned with both heavily populated areas and warmer climates, as these characteristics will provide large customer bases for industry products. Producers benefit from being located near customers both to reduce distribution costs and to stay plugged in to changes in consumer preferences.Therefore, the Southeast region (which is generally both warm and heavily populated) is expected to account for the largest share of industry establishments, at 21.7%, with establishments spread out fairly evenly throughout this region. The West accounts for 19.8% of the industry establishments, with California being the most densely populated with 13.8% of establishments. It ...purchase to read more.

    Additional Insights for the RTD Tea Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the RTD Tea Production Industry are

  • Strong distribution network
  • Economies of scale
  • Establishment of brand names
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Per capita tea consumption in the RTD Tea Production industry impact industry performance..

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    Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Per capita tea consumption
  • Healthy eating index
  • Per capita soft drink consumption
  • Trade-weighted index

  • Current Performance
  • Health benefits drive growth
  • Innovation and competition
  • Profit and trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising revenue, rising profit
  • Expansion and development
  • Table: RTD Tea Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - RTD Tea Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Vending Machine Operators

  • Key Selling Industries
  • Baking Mix & Prepared Food Production
  • Plastic Bottle Manufacturing
  • Printing

  • Products & Services
  • Black tea
  • Green and white tea
  • Herbal tea
  • Chart: RTD Tea Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Grocery stores
  • Gas stations and convenience stores
  • Warehouse clubs and superstores
  • Exports
  • Vending machines
  • Chart: Major Market Segmentation for the RTD Tea Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs RTD Tea Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the RTD Tea Production Industry

  • Industry Globalization
    Arizona Beverage Company, Unilever, Nestle SA, Dr. Pepper Snapple Group Inc.,
  • Table: Arizona Beverage Company - financial performance
  • Table: Unilever - financial performance
  • Table: Nestle SA - financial performance
  • Table: Dr. Pepper Snapple Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the RTD Tea Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the RTD Tea Production Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Antioxidant
  • A molecule that inhibits the oxidation of other molecules, widely believed to boost metabolism, fight cancer and have other health benefits.
  • Carbonated Soft Drink
  • A nonalcoholic beverage that contains carbonation and generally some form of sweetener or flavor.
  • Functional Drink
  • A beverage that performs a function, including sports drinks that enhance athletic performance and energy drinks that increase alertness.
  • Organic
  • Organic foods use a limited amount of synthetic inputs, such as pesticides and chemical fertilizers.
  • Rtd (Ready-To-Drink)
  • A type of beverage that is prepared and packaged, ready for consumption.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on RTD Tea Production provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on RTD Tea Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The RTD Tea Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on RTD Tea Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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