Ready-to-Drink (RTD) Coffee & Tea - Australia & Oceania

The Ready-to-Drink (RTD) Coffee & Tea market in Australia & Oceania is experiencing significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Australia & Oceania, there is a growing demand for convenient and on-the-go beverage options. As consumers lead increasingly busy lifestyles, they are seeking ready-to-drink coffee and tea products that can be easily consumed without the need for preparation. Additionally, there is a rising interest in healthier beverage options, with consumers looking for low-sugar, natural, and organic alternatives. This shift in consumer preferences towards convenience and health-conscious choices has fueled the growth of the RTD Coffee & Tea market in the region.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Australia & Oceania is the popularity of cold brew coffee. Cold brew coffee is made by steeping coffee grounds in cold water for an extended period of time, resulting in a smoother and less acidic flavor. This trend has gained traction among consumers who prefer a milder coffee taste and are willing to pay a premium for a high-quality product. Cold brew coffee is often marketed as a premium and artisanal beverage, appealing to the growing segment of consumers seeking unique and indulgent experiences. Another trend in the market is the increasing popularity of tea-based RTD beverages. Traditional tea has long been a popular beverage in Australia & Oceania, and this preference has translated into the RTD market. Consumers are embracing tea-based RTD products that offer a variety of flavors, including herbal, green, and fruit-infused options. The health benefits associated with tea, such as antioxidants and relaxation properties, also contribute to the growing demand for tea-based RTD beverages.

Local special circumstances: Australia & Oceania has a unique coffee culture, with a strong emphasis on high-quality coffee and specialty cafes. This culture has influenced the RTD Coffee market in the region, with consumers seeking premium and gourmet options. The demand for locally sourced and ethically produced coffee is also on the rise, as consumers prioritize sustainability and support for local businesses. These local special circumstances have created opportunities for niche players and artisanal brands to thrive in the RTD Coffee market in Australia & Oceania.

Underlying macroeconomic factors: The growing middle class and increasing disposable income in Australia & Oceania have contributed to the growth of the RTD Coffee & Tea market. As consumers have more purchasing power, they are willing to spend on premium and convenient beverages. Additionally, the region's strong tourism industry has attracted international visitors who are interested in experiencing the local coffee and tea culture. This influx of tourists has further boosted the demand for RTD Coffee & Tea products, as they seek to take a piece of the local coffee and tea culture back home with them. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Australia & Oceania is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for convenient and healthier beverage options, the popularity of cold brew coffee and tea-based RTD beverages, Australia & Oceania's unique coffee culture, and the region's growing middle class and tourism industry are all driving the development of the market.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.