siliconindia | | July 20199n India, tea is considered to be a unifying symbol across cultures and regions. While its forms may vary, the quintessential `hot cuppa' is essential across the lengths and breadths of our country. Even in the global scenario, tea has a colossal market owing to the large scale awareness about its numerous physical and mental health benefits. Across the globe, the Beverage Market is categorized into four different spectrums ­ Distribution (Retail, Online & Supermarket), Type (Tea ­ Flavours, Coffee ­ Flavours & Juices), Packaging (Loose Leaves, Tins, Bags & Sachets), and Consumption (B2B & B2C Channels). While all the categories are of imperative focus, the `Type' of beverages has always garnered more importance, both nationally and internationally. Given its multitude range, with each having its respective merits, it is no surprise that customers always want to include them in their purchases. To further delve into this, consumer insight studies have inevitably shown that there is a market need for beverages, which are in sync with their lifestyles and requirements, which has further led to the introduction of `Ready To Drink' (RTD) segment. Interestingly, in the recent years, it has undergone a `Perception Makeover' in the industry. It is important to understand this point, because the customers' preference shifted to more convenience-based requirements, hence boosting the development of RTD beverages. Today's marketplace appreciates and buys products which have high nutritional value, whilst being `convenient' in terms of consumption. This has led to several changes in sale cycles across innumerable sectors. Hence, the industry formula observed is ­ Desire to be Fit + `Convenience' as consumption choice = Increase in RTD Beverages (sales and production wise).The RTD market is further divided into three segments, which are Region (North America, Europe, Asia Pacific & more), Type (Tea, Coffee, Juice & Aerated drinks), and Packaging (Glass, Plastic, Cans & Cartons). Under the `Region' bit, India is one of the key players from Asia Pacific. Its RTD beverages market is expected to grow at a CAGR of 3.2 percent by 2020. Another interesting aspect to understand is that the nature of this particular product segment offers scope for constant innovation ­ in terms of ingredients, salient features, packaging, marketing, and others. Nowadays, given the technological advancements, there is no dearth of exploration in terms of variations, which piques consumer interests as well. All of these factors have played a major role in changing the way one looks at RTD drinks.Another fascinating spectrum to understand is the one within this category ­ there's carbonated, non-carbonated, organic, cold brew, hot brew, and more. It is important to understand the business ecosystem that is driven by communication impacting the people in it. Earlier, carbonated beverages were ruling the roster as most consumers used to purchase soft drinks and other soda-based concoctions. Societal narratives are now focused on health facets and benefits of everything that we consume, which have further shown non-carbonated, organic, and cold-brews to be the most purchased beverages in the RTD category. So, the change has been both `Inter' and `Intra' in nature ­ not only has there been a shift towards the RTD segment, there's been a shift within this group as well. It is critical to understand the various environment elements that play an important role, in terms of lifestyle, trends, rising awareness of certain notions, and others. For example, let us look at the `Healthy Food' conversation ­ what started as an option in the late `00s is now becoming mandatory in today's day and age; businesses are understanding this too, by infusing innovation into their product offerings on the lines of sustainability. Similarly, let us look at gratification. Earlier, the world trusted the concept of `It is worth the wait' and now, `the faster, the better'. It might come across as a simple mind-set shift, but look at where we are now ­ we are all leading fast-paced lives, multi-tasking and trying to get results as soon as possible. This has slowly translated into our purchasing patterns, product preferences, and more. Consumer deviation is a natural phenomenon and in the case of RTD beverages, it has been quite a high degree. Given its easy availability, convenience factor, and numerous benefits; it shouldn't come as a surprise. To sum it up, the alteration of societal perceptions has led to a pattern shift, further leading to newer products and services, which is a culmination of innovation, technology and consumer needs. The target audiences, especially Generation Z and Millennials, are looking for novelty, quantity and quality. Techniques of product sampling and tastings, for educating the consumer(s) about the concoctions, are also an indispensable part of the process. These forces are the reason behind the creation and popularity of RTD beverages ­ which are currently driving the market and will continue to do so in the near future as well. IToday's marketplace appreciates and buys products which have high nutritional value, whilst being `convenient' in terms of consumption
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