Global Ready To Drink (RTD) Tea & Coffee Market Report

Global Ready To Drink (RTD) Tea & Coffee Market Size, Share, Trends & Growth Analysis Report Segmented By Product (RTD Tea (Black, Green, Fruit, Kombucha, Others, RTD Coffee (Cold brew coffee, Iced coffee, Flavored coffee, Others)), Packaging, Price, Distribution Channel, And Regions (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), 2025-2033
The global Ready To Drink (RTD) Tea & Coffee market is forecasted to grow at a noteworthy CAGR of 6.38% between 2025 and 2033. By 2033, market size is expected to surge to USD 226.79 Billion, a substantial rise from the USD 129.98 Billion recorded in 2024.
Ready To Drink (RTD) Tea & Coffee Market Size and Forecast 2025 to 2033
Ready to Drink (RTD) tea and coffee refer to pre-packaged beverages that are conveniently available for immediate consumption without the need for preparation. These beverages are typically sold in bottles, cans, or cartons and encompass a wide variety of flavors and formulations, including iced teas, cold brews, and flavored coffee drinks. The RTD segment has gained immense popularity due to its alignment with the fast-paced lifestyles of modern consumers, who seek convenient and portable beverage options. The production of RTD tea and coffee involves brewing, flavoring, and often sweetening, followed by pasteurization or cold filling to ensure product safety and longevity. This category appeals to a diverse demographic, from health-conscious individuals seeking natural ingredients to coffee aficionados looking for premium blends. The growing trend of on-the-go consumption has further solidified the position of RTD tea and coffee as a staple in the beverage market, catering to the evolving preferences of consumers who prioritize convenience without compromising on taste.
The global RTD beverage market is expected to experience robust growth, fueled by the rising popularity of specialty coffee and artisanal tea blends. Furthermore, the expansion of e-commerce platforms has made these beverages more accessible, allowing consumers to explore a wider range of products from the comfort of their homes. The growing trend of sustainability is also influencing product development, with brands increasingly focusing on eco-friendly packaging and ethically sourced ingredients, thereby creating new avenues for market differentiation and consumer engagement. As the RTD tea and coffee market continues to evolve, it presents a wealth of opportunities for innovation and growth, catering to the diverse preferences of a health-conscious and convenience-driven consumer base.
Market Dynamics
Ready To Drink (RTD) Tea & Coffee Market Drivers
- Health Consciousness: Increasing Demand for Functional Beverages; The growing awareness of health and wellness among consumers is a significant driver for the RTD tea and coffee market. According to the World Health Organization, non-communicable diseases, which are often linked to poor dietary choices, are responsible for 71% of global deaths. This has led consumers to seek healthier beverage options, including those fortified with vitamins, antioxidants, and natural ingredients. The RTD segment has responded by introducing products that not only quench thirst but also offer health benefits, such as improved digestion and enhanced energy levels. For instance, a report from the Food and Drug Administration indicates that beverages with added functional ingredients have seen a 20% increase in consumer interest over the past five years, highlighting the shift towards health-oriented choices.
- Convenience and On-the-Go Consumption: Changing Lifestyles; The fast-paced lifestyle of modern consumers has significantly influenced the demand for RTD beverages. A survey conducted by the National Restaurant Association found that 60% of consumers prefer convenience when it comes to food and beverage choices. This trend is particularly evident among millennials and Gen Z, who prioritize quick and easy options that fit their busy schedules. RTD tea and coffee products cater to this demand by offering ready-to-drink solutions that can be consumed anywhere, from commuting to work to exercising. The convenience factor is further enhanced by innovative packaging solutions that allow for easy transport and consumption, making these beverages a popular choice for on-the-go individuals.
- Diverse Flavor Profiles: Expanding Consumer Preferences; The RTD tea and coffee market is also driven by the increasing variety of flavors and formulations available to consumers. Research from the Specialty Coffee Association indicates that 70% of coffee drinkers are open to trying new flavors, leading to a surge in product innovation. Companies are experimenting with unique flavor combinations, such as matcha-infused coffee or hibiscus tea blends, to attract adventurous consumers. This diversification not only caters to individual taste preferences but also encourages trial and repeat purchases, further propelling market growth.
- Sustainability Trends: Eco-Friendly Packaging and Sourcing; As environmental concerns continue to rise, consumers are increasingly seeking products that align with their values. A report from the Environmental Protection Agency highlights that 75% of consumers are willing to pay more for sustainable products. In response, many RTD tea and coffee brands are adopting eco-friendly practices, such as using recyclable packaging and sourcing ingredients from sustainable farms. This commitment to sustainability not only enhances brand loyalty but also attracts environmentally conscious consumers, creating a competitive advantage in the market.
Ready To Drink (RTD) Tea & Coffee Market Opportunities
- Emerging Markets: Expanding Global Reach; The RTD tea and coffee market presents significant opportunities in emerging markets, where urbanization and changing lifestyles are driving demand for convenient beverage options. According to the International Coffee Organization, coffee consumption in Asia is expected to grow by 25% over the next five years, fueled by a burgeoning middle class and increasing disposable incomes. This trend is mirrored in the tea segment, where countries like India and China are witnessing a rise in RTD tea consumption. Companies that strategically enter these markets can capitalize on the growing demand for ready-to-drink beverages, establishing a strong foothold in regions with high growth potential.
- E-commerce Growth: Digital Sales Channels; The rise of e-commerce has transformed the retail landscape, providing a lucrative opportunity for RTD tea and coffee brands. A report from the U.S. Census Bureau indicates that e-commerce sales have increased by over 30% in the past year alone. This shift towards online shopping allows brands to reach a wider audience and cater to the growing preference for home delivery. By investing in digital marketing strategies and optimizing their online presence, companies can effectively tap into this trend, enhancing their sales and brand visibility in the competitive RTD market.
- Product Innovation: Health and Wellness Trends; The increasing consumer focus on health and wellness presents an opportunity for RTD tea and coffee brands to innovate their product offerings. The market for functional beverages is projected to grow significantly, with a report from the Beverage Marketing Corporation estimating a 15% increase in demand for health-oriented drinks over the next five years. Brands can leverage this trend by developing RTD products that incorporate functional ingredients, such as adaptogens, probiotics, and superfoods, appealing to health-conscious consumers seeking beverages that provide added benefits.
- Sustainable Practices: Eco-Conscious Consumer Base; As sustainability becomes a priority for consumers, RTD tea and coffee brands have the opportunity to differentiate themselves through eco-friendly practices. A survey by Nielsen indicates that 66% of global consumers are willing to pay more for sustainable brands. By adopting sustainable sourcing, packaging, and production methods, companies can attract environmentally conscious consumers and enhance their brand reputation. This commitment to sustainability not only meets consumer demand but also positions brands as leaders in the growing market for eco-friendly products.
Ready To Drink (RTD) Tea & Coffee Market Restrain & Challenges
- Regulatory Compliance: Navigating Complex Regulations; The RTD tea and coffee market faces significant challenges related to regulatory compliance. Beverage manufacturers must adhere to stringent food safety and labeling regulations set forth by government agencies, which can vary by region. For instance, the Food and Drug Administration mandates specific labeling requirements for beverages, including ingredient disclosure and nutritional information. Navigating these regulations can be complex and time-consuming, posing a challenge for companies looking to introduce new products or expand into new markets. Failure to comply with these regulations can result in costly fines and damage to brand reputation.
- Intense Competition: Saturated Market Landscape; The RTD tea and coffee market is characterized by intense competition, with numerous brands vying for consumer attention. This saturation can make it challenging for new entrants to establish a foothold and for existing brands to maintain market share. According to a report from IBISWorld, the beverage industry is highly fragmented, with thousands of companies competing in the RTD segment. As a result, brands must invest heavily in marketing and product differentiation to stand out in a crowded marketplace. This competitive pressure can lead to price wars and reduced profit margins, posing a challenge for profitability.
- Changing Consumer Preferences: Adapting to Trends; The RTD tea and coffee market is subject to rapidly changing consumer preferences, which can pose a challenge for brands. As consumers become more health-conscious and environmentally aware, they may shift their preferences towards alternative beverages, such as plant-based drinks or functional waters. Brands must remain agile and responsive to these changing preferences, continuously innovating their product offerings to meet evolving consumer demands.
- Supply Chain Disruptions: Impact of Global Events; The RTD tea and coffee market is vulnerable to supply chain disruptions caused by global events, such as pandemics or geopolitical tensions. The COVID-19 pandemic, for instance highlighted the fragility of supply chains, leading to shortages of raw materials and increased production costs. According to the World Trade Organization, global trade volumes fell by 5.3% in 2020 due to the pandemic, impacting the availability of ingredients and packaging materials for beverage manufacturers. Companies must develop robust supply chain strategies to mitigate these risks and ensure consistent product availability in the face of unforeseen challenges.
Current Trends in the Ready To Drink (RTD) Tea & Coffee Market
- Health and Wellness Focus: Rise of Functional Beverages; The trend towards health and wellness is significantly shaping the RTD tea and coffee market, with consumers increasingly seeking beverages that offer functional benefits. According to the International Food Information Council, 77% of consumers are more likely to purchase products that provide health benefits. This has led to a surge in the development of RTD beverages infused with vitamins, minerals, and other functional ingredients. Brands are capitalizing on this trend by creating products that not only satisfy thirst but also support overall health, such as immune-boosting teas or energy-enhancing coffees. This focus on health and wellness is expected to continue driving innovation and growth in the RTD segment.
- Sustainability Initiatives: Eco-Friendly Packaging and Sourcing; As environmental concerns gain prominence, sustainability initiatives are becoming a key trend in the RTD tea and coffee market. A report from the World Economic Forum indicates that 66% of consumers are willing to pay more for sustainable products. In response, many brands are adopting eco-friendly practices, such as using recyclable packaging and sourcing ingredients from sustainable farms. This commitment to sustainability not only appeals to environmentally conscious consumers but also enhances brand loyalty and reputation. Companies that prioritize sustainability are likely to gain a competitive edge in the market, as consumers increasingly seek products that align with their values.
- Innovative Flavor Profiles: Experimentation and Variety; The RTD tea and coffee market is witnessing a trend towards innovative flavor profiles, as brands experiment with unique combinations to attract adventurous consumers. Research from the Specialty Coffee Association indicates that 70% of coffee drinkers are open to trying new flavors, leading to a rise in products that blend traditional flavors with unexpected ingredients. For instance, brands are introducing RTD beverages that combine coffee with spices, herbs, or exotic fruits, creating a diverse range of options for consumers. This trend not only caters to individual taste preferences but also encourages trial and repeat purchases, further propelling market growth.
- Digital Engagement: Leveraging Technology for Consumer Connection; The rise of digital technology is transforming the way RTD tea and coffee brands engage with consumers. A report from eMarketer indicates that digital advertising spending in the beverage industry has increased by 25% in the past year. Brands are leveraging social media, influencer marketing, and e-commerce platforms to connect with consumers and promote their products. This digital engagement allows companies to reach a wider audience, gather consumer insights, and tailor their marketing strategies to meet evolving preferences. As technology continues to advance, brands that effectively utilize digital channels are likely to enhance their visibility and drive sales in the competitive RTD market.
Segmentation Insights
Ready To Drink (RTD) Tea & Coffee Market Analysis, By Product
By Product Type, the market is categorized into RTD Tea (Black, Green, Fruit, Kombucha, Others) and RTD Coffee (Cold Brew Coffee, Iced Coffee, Flavored Coffee, Others).
- The largest segment in the RTD tea and coffee market is RTD Coffee, which has gained immense popularity due to the growing consumer preference for coffee-based beverages. This segment is leading primarily with due to of the increasing demand for convenient and ready-to-drink coffee options, particularly among busy professionals and millennials. The rise of specialty coffee culture has also contributed to the popularity of RTD coffee, with consumers seeking high-quality, flavorful options that can be enjoyed on the go. Additionally, the introduction of innovative flavors and formulations, such as cold brew and flavored iced coffee, has further enhanced the appeal of this segment, making it a preferred choice for many consumers.
- The fastest-growing segment in the RTD tea and coffee market is RTD Tea, particularly the fruit-infused and herbal varieties. This segment is experiencing rapid growth due to the increasing consumer awareness of health benefits associated with tea consumption, such as antioxidants and hydration. The trend towards healthier beverage options has led to a surge in demand for RTD tea, especially among health-conscious consumers seeking refreshing and low-calorie alternatives. Furthermore, the introduction of unique flavor combinations and functional ingredients, such as adaptogens and probiotics, has attracted a diverse consumer base, contributing to the segment's accelerated growth.
Ready To Drink (RTD) Tea & Coffee Market Analysis, By Packaging
By Packaging Type, the market is categorized into Canned, Glass Bottle, PET Bottle and Others.
- The largest segment in the RTD tea and coffee market is the PET Bottle segment, which has gained prominence due to its lightweight, shatterproof, and recyclable properties. PET bottles are favored by consumers for their convenience and portability, making them an ideal choice for on-the-go consumption. Additionally, the cost-effectiveness of PET packaging allows brands to offer competitive pricing, further driving its popularity. The versatility of PET bottles in accommodating various beverage types, from iced coffee to fruit-infused teas, has solidified its position as the leading packaging choice in the RTD market.
- The fastest-growing segment in the RTD tea and coffee market is the Canned segment, which is experiencing a surge in popularity due to the increasing consumer preference for sustainable and eco-friendly packaging options. Cans are perceived as more environmentally friendly compared to plastic bottles, as they are widely recyclable and have a lower carbon footprint. This trend aligns with the growing consumer demand for sustainable products, prompting brands to explore canned packaging for their RTD beverages. Additionally, the convenience of cans, which are easy to transport and consume, has contributed to the rapid growth of this segment in the market.
Ready To Drink (RTD) Tea & Coffee Market Analysis, By Price
By Price Type, the market is categorized into Premium and Economy.
- The largest segment in the RTD tea and coffee market is the Premium segment, which has gained traction due to the increasing consumer willingness to pay for high-quality, artisanal products. Premium RTD beverages often feature superior ingredients, unique flavor profiles, and innovative formulations, appealing to discerning consumers who prioritize quality over cost. This trend is particularly evident among millennials and Gen Z, who are more inclined to invest in premium products that align with their lifestyle and values. The growing demand for specialty coffee and gourmet tea options has further solidified the Premium segment's position as the leading choice in the market.
- The fastest-growing segment in the RTD tea and coffee market is the Economy segment, which is experiencing rapid growth as consumers seek affordable yet convenient beverage options. The rising cost of living and economic uncertainties have prompted many consumers to prioritize value for money, leading to increased demand for budget-friendly RTD products. Brands that offer quality beverages at competitive prices are well-positioned to capture this growing consumer base. Additionally, the expansion of discount retailers and online platforms has made it easier for consumers to access affordable RTD options, contributing to the accelerated growth of the Economy segment.
Ready To Drink (RTD) Tea & Coffee Market Analysis, By Distribution Channel
By Distribution Channel Type, the market is categorized into Supermarkets/Hypermarkets, Convenience Stores, Food Service and Online.
- The largest segment in the RTD tea and coffee market is the Supermarkets/ Hypermarkets segment, which dominates due to the extensive reach and convenience these retail formats offer. Supermarkets and hypermarkets provide consumers with a wide variety of RTD beverage options, allowing them to easily compare products and make informed purchasing decisions. The presence of well-established brands and promotional activities within these retail environments further enhances consumer visibility and accessibility. Additionally, the ability to purchase RTD beverages in bulk at competitive prices makes supermarkets and hypermarkets a preferred shopping destination for many consumers.
- The fastest-growing segment in the RTD tea and coffee market is the Online segment, which is experiencing rapid growth as e-commerce continues to reshape the retail landscape. The convenience of online shopping, coupled with the increasing adoption of digital payment methods, has led to a surge in online sales of RTD beverages. According to a report from the U.S. Census Bureau, e-commerce sales in the food and beverage sector have seen significant growth, driven by changing consumer preferences for home delivery and contactless shopping experiences. Brands that invest in their online presence and leverage digital marketing strategies are well-positioned to capitalize on this trend, driving the accelerated growth of the Online segment.
Ready To Drink (RTD) Tea & Coffee Market Regional Insights
The market has been geographically analysed across five regions, Europe, North America, Asia Pacific, Latin America, and the Middle East & Africa.
- In the Ready To Drink (RTD) Tea & Coffee market, North America is the largest region, driven by a strong coffee culture and a high demand for convenient beverage options. The region's well-established retail infrastructure and the presence of numerous leading brands contribute to its dominance. Additionally, the increasing trend of on-the-go consumption among busy professionals and millennials has further fueled the growth of the RTD segment in North America. The region's consumers are also more inclined to experiment with new flavors and premium products, enhancing the market's overall growth potential.
- The fastest-growing region in the Ready To Drink (RTD) Tea & Coffee market is Asia Pacific, where rapid urbanization and changing lifestyles are driving demand for convenient beverage options. The region's burgeoning middle class and increasing disposable incomes are contributing to the rising consumption of RTD beverages. Countries like China and India are witnessing a significant shift towards ready-to-drink tea and coffee, as consumers seek healthier and more convenient alternatives. The growing awareness of the health benefits associated with tea and coffee consumption is also propelling the market's growth in this region, making it a key area for future expansion.
Ready To Drink (RTD) Tea & Coffee Market Competitive Overview
The Ready To Drink (RTD) Tea & Coffee market is characterized by a competitive landscape with numerous players vying for market share. Companies are focusing on product innovation, marketing strategies, and distribution channels to differentiate themselves in this crowded market. The competitive dynamics are influenced by factors such as brand loyalty, consumer preferences, and pricing strategies. Leading brands are investing in research and development to create unique flavors and formulations that cater to evolving consumer tastes. Additionally, partnerships with retailers and e-commerce platforms are becoming increasingly important for brands to enhance their visibility and accessibility in the market. As the demand for RTD beverages continues to grow, companies that can effectively adapt to changing consumer trends and preferences are likely to succeed in this dynamic environment.
Leading Market Players in the Ready To Drink (RTD) Tea & Coffee Market
- Suntory Holdings Limited: Suntory Holdings Limited is a prominent player in the RTD tea and coffee market, known for its innovative product offerings and commitment to quality. The company has established a strong presence in various beverage segments, including tea, coffee, and soft drinks. Suntory's focus on sustainability and environmental responsibility is evident in its packaging initiatives and sourcing practices. The brand's dedication to creating unique flavors and premium products has resonated with consumers, positioning it as a leader in the RTD market.
- Nestlé: Nestlé is a global leader in the food and beverage industry, with a significant presence in the RTD tea and coffee market. The company's diverse portfolio includes well-known brands that cater to various consumer preferences. Nestlé's commitment to quality and innovation is reflected in its continuous efforts to develop new products that meet the evolving demands of health-conscious consumers. The brand's extensive distribution network and marketing strategies have further solidified its position as a key player in the RTD segment.
- The Coca-Cola Company: The Coca-Cola Company is a major player in the RTD tea and coffee market, leveraging its extensive brand portfolio and global reach. The company's strategic acquisitions and partnerships have allowed it to expand its presence in the RTD segment, offering a wide range of beverages that cater to diverse consumer preferences. Coca-Cola's focus on innovation and sustainability is evident in its product development efforts, as the company seeks to create beverages that align with health and wellness trends. The brand's strong marketing campaigns and distribution capabilities have contributed to its success in the competitive RTD market.
Top Strategies Followed by Players
- Sustainability Initiatives: Another prominent strategy is the commitment to sustainability, which has become increasingly important in the beverage industry. Companies are adopting eco-friendly practices, such as using recyclable packaging and sourcing ingredients from sustainable farms. This not only appeals to environmentally conscious consumers but also enhances brand loyalty and reputation. Brands that prioritize sustainability are likely to gain a competitive advantage, as consumers are increasingly willing to support companies that align with their values. Furthermore, transparency in sourcing and production processes is becoming a critical factor for consumers, prompting brands to communicate their sustainability efforts effectively.
- Digital Marketing and E-commerce Expansion: The rise of digital technology has led to a significant shift in marketing strategies, with companies leveraging social media and e-commerce platforms to engage with consumers. Brands are investing in targeted digital advertising campaigns to reach specific demographics, particularly younger consumers who are more active online. This strategy allows companies to build brand awareness and foster direct relationships with consumers. Additionally, the expansion of e-commerce channels has enabled brands to reach a broader audience, catering to the growing preference for online shopping. By optimizing their online presence and utilizing data analytics, companies can tailor their marketing efforts to meet evolving consumer preferences and enhance sales.
- Collaborations and Partnerships: Strategic collaborations and partnerships are also a key strategy employed by players in the RTD market. Companies are forming alliances with retailers, distributors, and even other brands to enhance their market reach and visibility. These partnerships can facilitate entry into new markets and provide access to a wider consumer base. For instance, collaborations with health and wellness influencers can help brands tap into niche markets and promote their products to targeted audiences. By leveraging the strengths of their partners, companies can create synergies that drive growth and innovation in the competitive RTD landscape.
List of Companies Profiled in the Report are:
- Suntory Holdings Limited
- Nestlé
- The Coca-Cola Company
- Unilever
- Asahi Group Holdings Ltd.
- PepsiCo
- Starbucks Coffee Company
- Monster Energy Company
- Danone
- AriZona Beverages USA.
Global Ready To Drink (RTD) Tea & Coffee Market Report: Scope
Report Details | Attributes |
Base Year | 2024 |
Estimated Year | 2025 |
Historic Year | 2021-2023 |
Forecast Period | 2025-2033 |
Market Value | USD Billion |
Key Segments |
|
Regional Coverage |
|
Companies Profiled |
*No Particular order has been followed while listing the company names. |
List of Segments Covered
This section of the Ready To Drink (RTD) Tea & Coffee market report provides detailed data on the segments at country and regional level, thereby assisting the strategist in identifying the target demographics for the respective product or services with the upcoming opportunities.
By Product
- RTD Tea (Black, Green, Fruit, Kombucha, Others
- RTD Coffee (Cold brew coffee, Iced coffee, Flavored coffee, Others)
By Packaging
- Canned
- Glass Bottle
- PET Bottle
- Others
By Price
- Premium
- Economy
By Distribution Channel
- Supermarkets/Hypermarkets
- Convenience Stores
- Food Service
- Online
1.1. Report Description
1.1.1 Objective
1.1.2 Target Audience
1.1.3 Unique Selling Proposition (USP) & offerings
1.2. Research Scope
1.3. Research Methodology
1.3.1 Market Research Process
1.3.2 Market Research Methodology
2. EXECUTIVE SUMMARY
2.1. Highlights of Market
2.2. Global Market Snapshot
3. READY TO DRINK (RTD) TEA & COFFEE – INDUSTRY ANALYSIS
3.1. Introduction - Market Dynamics
3.2. Market Drivers
3.3. Market Restraints
3.4. Opportunities
3.5. Industry Trends
3.6. Porter’s Five Force Analysis
3.7. Market Attractiveness Analysis
3.7.1 Market Attractiveness Analysis By Product
3.7.2 Market Attractiveness Analysis By Packaging
3.7.3 Market Attractiveness Analysis By Price
3.7.4 Market Attractiveness Analysis By Distribution Channel
3.7.5 Market Attractiveness Analysis By Region
4. VALUE CHAIN ANALYSIS
4.1. Value Chain Analysis
4.2. Raw Material Analysis
4.2.1 List of Raw Materials
4.2.2 Raw Material Manufactures List
4.2.3 Price Trend of Key Raw Materials
4.3. List of Potential Buyers
4.4. Marketing Channel
4.4.1 Direct Marketing
4.4.2 Indirect Marketing
4.4.3 Marketing Channel Development Trend
5. GLOBAL READY TO DRINK (RTD) TEA & COFFEE MARKET ANALYSIS BY PRODUCT
5.1. Overview By Product
5.2. Historical and Forecast Data Analysis By Product
5.3. RTD Tea(Black, Green, Fruit, Kombucha, Others Historic and Forecast Sales By Regions
5.4. RTD Coffee(Cold brew coffee, Iced coffee, Flavored coffee, Others) Historic and Forecast Sales By Regions
6. GLOBAL READY TO DRINK (RTD) TEA & COFFEE MARKET ANALYSIS BY PACKAGING
6.1. Overview By Packaging
6.2. Historical and Forecast Data Analysis By Packaging
6.3. Canned Historic and Forecast Sales By Regions
6.4. Glass Bottle Historic and Forecast Sales By Regions
6.5. PET Bottle Historic and Forecast Sales By Regions
6.6. Others Historic and Forec...
Frequently Asked Questions (FAQs) about this Report
- Market Size and Forecast
- Market Dynamics
- Segmentation Insights
- Regional Insights
- Competitive Overview
- Recent Developments
- Scope of the Report
- List of Segments Covered
- FAQs
Insights You Can Expect From This Report

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