Ready-to-Drink (RTD) Coffee & Tea - Azerbaijan

The Ready-to-Drink (RTD) Coffee & Tea market in Azerbaijan has been experiencing significant growth in recent years.

Customer preferences: Azerbaijanis have shown a growing preference for convenience and on-the-go consumption, which has contributed to the increasing demand for RTD coffee and tea products. The busy lifestyles of consumers in Azerbaijan have led to a shift towards ready-to-drink beverages that can be easily consumed without the need for preparation or brewing.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Azerbaijan is the rising popularity of cold brew coffee. Cold brew coffee is known for its smoother and less acidic taste compared to traditional hot brewed coffee. This trend is driven by the growing interest in specialty coffee and the desire for a refreshing and convenient coffee option. Additionally, flavored RTD coffee and tea products have gained traction among consumers in Azerbaijan, with flavors such as mocha, caramel, and green tea becoming increasingly popular.

Local special circumstances: Azerbaijan has a strong tea-drinking culture, with tea being a staple beverage in the country. However, the younger generation is increasingly embracing coffee as a trendy and fashionable drink. This shift in consumer preferences has created opportunities for RTD coffee brands to cater to this emerging market segment. Furthermore, Azerbaijan's growing tourism industry has also contributed to the demand for RTD coffee and tea products, as tourists often seek familiar and convenient options while exploring the country.

Underlying macroeconomic factors: The economic development and rising disposable incomes in Azerbaijan have played a significant role in the growth of the RTD Coffee & Tea market. As consumers have more purchasing power, they are willing to spend on convenient and premium products, including RTD coffee and tea. Additionally, the increasing urbanization in Azerbaijan has led to a higher demand for on-the-go products, further driving the growth of the RTD Coffee & Tea market. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Azerbaijan is experiencing growth due to the changing customer preferences towards convenience and on-the-go consumption. The rising popularity of cold brew coffee and flavored RTD coffee and tea products are key trends in the market. The local special circumstances, such as the shift in consumer preferences from tea to coffee and the growing tourism industry, are also contributing to the growth of the market. The underlying macroeconomic factors, such as economic development and rising disposable incomes, are fueling the demand for RTD coffee and tea products in Azerbaijan.

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.