The ready-to-drink (RTD) coffee and tea segment is decidedly no longer a niche market within the United States. The segment racked up retail sales of almost $7 billion during the 52 weeks ending Aug. 9, 2020, according to data from Chicago-based market research firm IRI (total U.S. — multi-outlet with c-store: grocery, drug, mass market, convenience, military and select club and dollar retailers).
A number of trends are driving growth on both the coffee and tea sides. Dairy processors that tap into these trends could grab their share of this lucrative market.