The global ready-to-drink (RTD) beverages market is on an impressive growth trajectory, with its size expected to soar from $240 billion in 2024 to $419.2 billion by 2033. As a refreshment operator, you can find new opportunities to meet changing consumer demands, particularly around convenience and health-conscious consumer preferences.
Capitalize on Convenience to Boost Sales
Modern consumers, particularly in urban areas, are driving demand for convenient, portable RTD beverages. Bottled teas, coffees, juices, and flavored waters are essential for busy, on-the-go lifestyles. Millennials and Gen Z are key drivers of on-the-go products that align with their values on health and sustainability.
You should consider:
Stocking a diverse range of RTD beverages, especially in areas with younger demographics.
Meet the Demand for Health and Sustainability
Functional beverages – offering health benefits like immunity boosts, digestive health support, and hydration – are in high demand. These include options enriched with vitamins, probiotics, and adaptogens.
Sustainability also plays a critical role, as eco-conscious consumers gravitate toward brands that use recyclable or biodegradable packaging. As a result, beverage companies are innovating with green initiatives to align with these preferences.
You should consider:
Partnering with brands that highlight health benefits with their RTD beverage or eco-friendly packaging.
Maximize The Impact with Trends Specific to North America
Increasing health awareness and demand for functional drinks, such as RTD tea and coffee, are driving the North American market for ready-to-drink beverages. Consumers are increasingly looking for beverages with natural ingredients, low sugar, and added nutritional benefits. In North America, the innovation behind plant-based and dairy-alternative beverages encourages demand. For environmentally-savvy consumers, high-grade packing and sustainability efforts for recyclable bottles will be appealing.
You should consider:
Adding healthier drinks to your regular stock, especially if they’re plant-based or dairy-free.
Embrace Plant-Based Beverages as a Fast-Growing Segment
Plant-based RTD beverages are experiencing remarkable growth, with the market projected to reach $47 billion by 2030. Innovations in almond and soy-based drinks, along with flexitarian diets, are driving this trend. Refreshment operators can capitalize on this by stocking dairy alternatives like almond, soy, or oat-based drinks and introducing RTD teas with natural ingredients.
Consumers are increasingly choosing plant-based options for their health benefits, sustainability, and ethical appeal. The demand will only grow, especially because lactose intolerance is on the rise globally.
You should consider:
Supporting dietary restrictions by offering a variety of beverages, even if it’s only one or two plant-based drinks.
Challenges and Opportunities in the RTD Market
While the RTD market thrives, challenges like consumer habits and the appeal of sugary beverages persist. A CDC study revealed that nearly 30% of U.S. adults still consume sugar-sweetened beverages twice or more daily, despite awareness of their health risks. This underscores the importance of taste preferences and marketing in shaping consumer behavior.
Public health initiatives and innovations, such as transparent labeling and healthier alternatives, may further shift consumption patterns. For RTD brands, digital platforms, new flavors, and exotic ingredients offer opportunities to capture evolving consumer preferences.
Watch the Major Players and Stay Agile
Prominent players in the RTD market, such as Coca-Cola, Nestlé, PepsiCo, and Red Bull pushing the boundaries of innovation, refreshment operators should anticipate more options in functional beverages and plant-based offerings. As companies expand their portfolios, partnerships, and distribution channels, it will be important to stay agile and responsive.
As the RTD beverage market accelerates, you will have a unique opportunity to redefine offerings and capture the loyalty of health-conscious and eco-savvy consumers. By embracing these trends and partnering with innovative brands, you can secure your share of this booming market.