Can tea brands take inspiration from ready-made cocktails, the fastest-growing area of the UK drinks industry according to Tesco at the end of last year?
Mintel predicts the tea category will shift from traditional bagged formats to more convenient ready-to-drink (RTD) options over the next five years and beyond.
In traditional tea-drinking markets such as Japan and China, this transition is already unlocking significant growth opportunities for RTD. Other countries, including the UK, are expected to follow – albeit at varying speeds.
RTDs will become the new gateway to tea for younger consumers, replacing hot tea’s historical role for older generations. In the UK, 49% of Gen Z and 39% of millennials have consumed RTD cold tea (excluding kombucha) at home or in the workplace compared to just 13% of Gen X, according to Mintel research.
Younger drinkers are drawn to RTDs that support speed and convenience, reinforcing RTD tea’s role as a flexible lifestyle beverage rather than a fixed ritual tied to specific moments of the day.
Other factors driving RTD’s popularity include advances in extraction technology and higher-quality raw materials, making RTD teas increasingly comparable to freshly brewed tea and challenging long-held perceptions of quality.
This matters, as six in 10 (60%) UK adults say high quality is one of the most important attributes of a brand.
Bringing function to tea
RTD tea currently lags behind traditional tea in delivering functional benefits. To stay competitive, RTD formats will need to integrate these benefits, particularly as half (48%) of UK tea drinkers choose tea for health reasons – rising to 74% among under-35s.
There are also lessons from bubble tea, which originated in East Asia but has gained popularity in western markets, including the UK – particularly among younger consumers looking for food and drink excitement and variety.
RTD bubble tea is now one of the fastest-growing RTD tea segments in Europe and North America, fuelled by sales in foodservice channels. Four in 10 (38%) UK consumers say trying a new tea flavour out of home has prompted them to buy it in store, rising to 67% of Gen Z.
Future expectations for RTD tea will also be shaped by the global expansion of Chinese-style tea chains such as HeyTea, which has opened multiple UK locations. By spotlighting terroir, premium experiences and clean ingredients, these brands are reshaping what quality tea means in a modern market and raising the bar for packaged products.
As these chains expand internationally, their influence will act as a catalyst for local innovation.
For tea brands, the opportunity is clear: RTD is no longer just about convenience, but about redefining quality, health and experience for a younger audience. Those that move early to premiumise RTD tea could shape how the next generation discovers, and ultimately defines, the category.
Heng Hong Tan is associate principal at Mintel Food & Drink
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