India RTD Tea & Coffee Market Overview, 2028

India, a land renowned for its vibrant culture and rich traditions, holds a special place in its heart for tea and coffee. The consumption of these beloved beverages is deeply ingrained in the social fabric of the nation, offering a glimpse into the unique traditions and rituals that have evolved over centuries. Tea, known as "chai" in Hindi, has an iconic status in Indian culture. It is not just a beverage but a symbol of warmth, hospitality, and togetherness. In households across the country, the day often begins with a steaming cup of chai, prepared by simmering tea leaves, milk, and spices such as cardamom, ginger, and cinnamon. The aroma wafts through the air, inviting family members and friends to gather and share in the comforting ritual of chai time. It is during these moments that stories are shared, relationships are nurtured, and bonds are strengthened. Similarly, coffee has found its place in the hearts of many Indians, particularly in the southern regions of the country. Known for its distinctive filter coffee, brewed with a blend of roasted coffee beans and chicory, this aromatic elixir holds special significance. It is often served in a traditional stainless steel tumbler and dabara (a small metal saucer) with a generous frothy layer, creating a unique sensory experience. Coffee breaks offer an opportunity for conversations and camaraderie, with coffeehouses and roadside stalls serving as social hubs where people gather to discuss a myriad of topics. In recent years, the popularity of ready-to-drink tea and coffee has surged, blending tradition with modern convenience. These beverages cater to the fast-paced lifestyle of urban India, providing a refreshing on-the-go option without compromising the authentic flavours that are deeply rooted in tradition. The infusion of innovative flavours and the incorporation of health-conscious ingredients have further expanded the choices available to consumers, while still maintaining a strong connection to the essence of Indian tea and coffee culture. The RTD tea and coffee industry in India, therefore, stands as a testament to the enduring tradition and culture surrounding these beloved beverages. It serves as a bridge between the past and the present, seamlessly blending age-old rituals and flavours with the demands of contemporary lifestyles. As India continues to embrace the convenience and allure of RTD tea and coffee, it does so with a deep respect for its cultural heritage, ensuring that every sip carries the essence of tradition in a modern and accessible form.

According to the research report "India Ready to Drink Tea and Coffee Market Overview, 2028," published by Bonafide Research, the India Ready to Drink Tea and Coffee market is expected to grow at a CAGR of more than 9% from 2023 to 2028. With the fast-paced nature of modern life, consumers seek convenient beverage options that can be enjoyed on the go. RTD tea and coffee provide a ready-to-consume solution that saves time and effort, catering to the evolving lifestyles of urban Indians. As health and wellness awareness increases, consumers are seeking healthier alternatives to sugary carbonated drinks. RTD tea and coffee brands have responded by introducing low-sugar, natural ingredient-based options, capturing the attention of health-conscious consumers. The RTD tea and coffee market in India has witnessed a surge in innovative flavours and varieties, catering to diverse consumer preferences. Manufacturers have introduced unique blends, herbal infusions, and fusion flavours, enticing consumers with exciting taste experiences. Influencer marketing and celebrity endorsements have played a significant role in promoting RTD tea and coffee brands in India. The association with popular personalities creates a strong appeal and reinforces the product's desirability among consumers. Based on the types segment, which includes ready-to-drink tea and Coffee, in India, ready-to-drink tea has the highest market share due to India's long-standing tea culture deeply rooted in its history and traditions. Tea is the most commonly consumed beverage in the country, and Indians have a strong affinity for its taste and aroma. The familiarity and love for tea have naturally translated into the growth of the RTD tea market. The RTD tea market in India has witnessed a surge in innovative flavours and varieties, providing consumers with a wide range of options to choose from. Manufacturers have introduced unique blends, fruit infusions, and herbal teas, catering to diverse taste preferences and offering consumers a variety of refreshing options.

Based on the Packaging types segment, there are pet bottles, canned goods, glass bottles, fountains, and others. In India, pet bottles have the highest market share due to their convenience and portability, making them ideal for on-the-go consumption. They are lightweight and easy to carry, allowing consumers to enjoy their favourite RTD tea or coffee anytime, anywhere. The convenience factor aligns well with the fast-paced lifestyle of urban Indians, driving the preference for PET bottles. PET bottles are known for their durability and resistance to breakage. This makes them a reliable packaging option, ensuring that the product remains intact and safe during transportation and handling. Consumers perceive PET bottles as a safe choice, minimising the risk of spills or leakage, thus boosting their popularity. Furthermore, PET bottles provide ample space for branding, labelling, and product information. Manufacturers can showcase their brand logos, product descriptions, nutritional details, and attractive graphics on the packaging. This allows for effective branding and product differentiation, capturing consumer attention and influencing purchase decisions. Based on the pricing segments, which include regular, popular priced, premium, fountain, and Super Premium, the regular price segment holds the highest market share in India due to The regular price segment offers RTD tea and coffee products at a price point that is affordable for a larger consumer base. India has a diverse population with varying income levels, and affordability plays a crucial role in driving consumer preferences. The regular price segment caters to the mass market, making RTD beverages accessible to a wider range of consumers. Furthermore, the regular price segment focuses on providing good value for money to consumers. It offers RTD tea and coffee options that are reasonably priced without compromising on quality or taste. Consumers seek products that offer a balance between affordability and the desired beverage experience, making the regular price segment an attractive choice.

Distribution channel includes the off trade and on trade, off-trade is hold the highest market share in India market, off-trade distribution channel consists of grocery stores, convenience stores, liquor stores, online retailers, due to the off-trade sales channel offers convenience and accessibility to a wide range of consumers. It includes supermarkets, grocery stores, and online platforms that are easily accessible and widely distributed across urban and rural areas of India. Consumers can conveniently purchase products at their preferred locations and times, making it a preferred choice for many. The off-trade sales channel provides a diverse range of products from various brands and categories. Consumers have the opportunity to browse through a wide selection, compare prices, and make informed decisions based on their preferences. The availability of different brands and flavours in the off-trade channel allows consumers to explore and choose products that suit their tastes and requirements.

Start-ups Scenario:
• Sleepy Owl is a popular start-up known for its cold brew coffee offerings. They specialize in ready-to-drink cold brew coffee that is crafted using high-quality beans and a slow extraction process. With a focus on natural ingredients and a wide range of flavors, Sleepy Owl has gained a dedicated following among coffee enthusiasts.
• While primarily known for its range of traditional Indian beverages, Paper Boat has also ventured into the RTD tea segment. They offer a variety of unique and flavorful RTD tea options, such as Aamras Chai (Mango Tea), Tulsi Tea, and Lemongrass Tea. Paper Boat has successfully blended Indian flavors with the convenience of ready-to-drink packaging.
• Teabox is an online start-up that specializes in premium loose-leaf teas sourced directly from Indian tea gardens. While they primarily focus on loose-leaf tea, Teabox has also expanded into the RTD tea market. Their RTD tea range includes innovative blends and flavors, providing consumers with a convenient and high-quality tea-drinking experience.
• Country Bean is a start-up that has gained popularity for its flavored coffee mixes. They offer a range of instant coffee mixes infused with flavors like Hazelnut, Vanilla, Caramel, and more. Country Bean's products cater to consumers who enjoy the convenience of instant coffee with added flavor variety.
• TGL Co. (The Good Life Company) is a luxury tea brand that has introduced a line of RTD tea products. They offer a selection of premium RTD iced teas, including classic flavors like Earl Grey and Green Tea, as well as unique blends like Mango Melange and Lychee Blossom. TGL Co. focuses on quality ingredients and elegant packaging to deliver a premium tea experience in a ready-to-drink format.

Considered in this report
• Geography: India
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• India Ready to Drink Tea & Coffee market with its value and forecast along with its segments
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Ready to Drink Tea
• Ready to Drink Coffee

By Packaging

• Pet Bottle
• Canned
• Glass Bottle
• Fountain/Aseptic
• Others (Pouches, Cartoons and Cups)

By Price
• Regular ($0.50 to $2 per unit)
• Popular Priced ($2 TO $4)
• Premium ($4 to $8)
• Super Premium (above $8)
• Fountain

By Distribution Channel
• Off-trade
• On-trade (Food Service and Vending)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to ready to Drink Tea & Coffee industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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Manmayi Raval

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