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

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

Customer preferences: Customers in the Baltics have shown a growing preference for convenience and on-the-go options, which has contributed to the rise in popularity of ready-to-drink coffee and tea products. These beverages offer a quick and easy solution for busy individuals who want to enjoy their favorite drinks without the need for brewing or preparation. Additionally, the younger generation in the Baltics has shown a particular interest in trying new and innovative flavors, leading to a wider variety of RTD coffee and tea options available in the market.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in the Baltics is the increasing demand for healthier and more natural products. Consumers are becoming more health-conscious and are actively seeking out beverages that are low in sugar, free from artificial ingredients, and made with natural flavors. This trend has prompted manufacturers to develop new products that cater to this demand, such as organic and plant-based RTD coffee and tea options. Another trend that has been observed in the market is the growing popularity of premium and specialty RTD coffee and tea products. Consumers are willing to pay a premium price for high-quality beverages that offer unique flavors and superior taste experiences. This trend has led to the emergence of artisanal and craft RTD coffee and tea brands in the Baltics, providing consumers with a wider range of options to choose from.

Local special circumstances: The Baltics region has a strong coffee and tea culture, with a long-standing tradition of consuming these beverages. This cultural affinity towards coffee and tea has created a favorable environment for the growth of the RTD Coffee & Tea market. Additionally, the region's relatively colder climate has also contributed to the popularity of hot beverages, including ready-to-drink coffee and tea.

Underlying macroeconomic factors: The improving economic conditions in the Baltics have played a significant role in the development of the RTD Coffee & Tea market. As disposable incomes have increased, consumers have become more willing to spend on premium and specialty beverages. Furthermore, the growth of the tourism industry in the region has also contributed to the market's expansion, as tourists often seek out local food and beverage products, including RTD coffee and tea. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in the Baltics is experiencing growth due to customer preferences for convenience and on-the-go options, as well as the demand for healthier and more natural products. The region's strong coffee and tea culture, along with improving economic conditions, have created a favorable environment for the market's development.

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.