Millennials and other demographic segments are seeking products that are natural, healthy and pure. These consumers want to see ‘healthy indulgence’ beverage choices and they prefer innovations, so RTD beverage companies can benefit by continuing to introduce newness with intriguing flavors and unique packaging into their category.

HEALTHY HYDRATION AND TEA’S HEALTH HALO

The healthy hydration trends among North American consumers—as well as rising consumer awareness of tea’s health benefits—have led to the rise in demand for RTD tea products over carbonated or soft drinks. Consumers in North America, particularly in the United States and Canada, are opting for healthier alternatives to carbonated beverages (sodas) and prefer less sugar in their beverage options. This factor is driving the market, with many RTD tea brands recognizing the trend and promoting organic, unsweetened and reduced sugar varieties.

To capture continued growth, RTD tea brands can add value by:

  • expanding their range of flavors
  • introducing different tea varieties
  • incorporating functional benefits
  • reformulating ingredients
  • modifying sweetness profiles
  • offering different pack types and sizes

Find out how Amelia Bay helps you deliver exactly what consumers want.

INNOVATING INTEREST

Many demographic segments are embracing RTD teas for their innovative options and functional superiority compared to other beverages. Premiumization, innovations and new product launches are key influential factors for market growth, with RTD brands offering new flavors and ingredient combinations. Value-added RTD teas such as kombucha fermented tea products offer the premiumization, and the incorporation of herbs, spices, flowers, and super food provide the innovations that pique consumer interest. Rooibos or red tea is a great example of a ‘new’ tea varietal that is gaining popularity and witnessing a growing demand from consumers, due to its unique taste, color, and perceived health benefits. RTD tea manufacturers are launching flavor innovations with fruit-tea hybrids, familiar fruit flavors that add diversity and expand traditional iced tea product ranges. The availability of multiple flavors appeals to consumers and helps increase sales.

Take a look at the varieties Amelia Bay can create for you.

ON-THE-GO CONVENIENCE

Busy consumers—especially millennials and time-poor professionals—also value the convenience of RTD iced teas. Brands can capitalize on this by offering new and different pack types and sizes to match busy lifestyles.

As many consumers shift toward environmentally friendly options, sustainable and recyclable packaging is especially appealing to consumers looking for natural beverages.

Find out how Amelia Bay helps get your tea to market faster.


Mordor Intelligence North America RTD Tea Market Report

Category: Trends

Tags: rtd, convenient, health, hydration, natural, varieties, benefits

 

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