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

The Ready-to-Drink (RTD) Coffee & Tea market in BRICS is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to this growth.

Customer preferences: In the BRICS countries, there is a growing demand for convenient and on-the-go beverage options. Ready-to-Drink (RTD) Coffee & Tea products offer a convenient solution for busy individuals who want to enjoy their favorite beverages without the hassle of brewing or preparing them. Additionally, consumers in these countries are increasingly health-conscious and are seeking healthier alternatives to traditional carbonated drinks. RTD Coffee & Tea products often contain natural ingredients and are perceived as a healthier option compared to other sugary beverages.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in BRICS is the introduction of innovative flavors and varieties. Manufacturers are constantly launching new products with unique and exotic flavors to cater to the diverse tastes of consumers. For example, in Brazil, coffee-flavored RTD beverages are gaining popularity, while in China, green tea-based drinks are in high demand. This trend is driven by the desire for novelty and the willingness of consumers to try new flavors. Another trend in the market is the increasing availability of RTD Coffee & Tea products in different distribution channels. These products are not only sold in traditional retail outlets but also in convenience stores, online platforms, and even vending machines. This wider accessibility makes it easier for consumers to purchase their favorite RTD Coffee & Tea products, further fueling market growth.

Local special circumstances: In each BRICS country, there are unique local circumstances that contribute to the development of the RTD Coffee & Tea market. For example, in China, tea has a long-standing cultural significance and is deeply ingrained in the daily lives of consumers. This cultural preference for tea has translated into a strong demand for RTD tea beverages. In India, on the other hand, coffee consumption is on the rise, driven by the growing café culture and the increasing popularity of coffee among the younger population. These local preferences and cultural factors play a significant role in shaping the RTD Coffee & Tea market in each country.

Underlying macroeconomic factors: Several underlying macroeconomic factors are driving the growth of the RTD Coffee & Tea market in BRICS. Economic growth and rising disposable incomes in these countries have led to an increase in consumer spending power. As a result, consumers are more willing to spend on premium and convenience products like RTD Coffee & Tea. Additionally, urbanization and changing lifestyles have contributed to the demand for ready-to-drink beverages, as urban dwellers seek convenient and time-saving options. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in BRICS is experiencing growth due to customer preferences for convenience and healthier beverage options, the introduction of innovative flavors, wider availability in distribution channels, local special circumstances, and underlying macroeconomic factors. The market is expected to continue to expand as consumers increasingly embrace the convenience and variety offered by RTD Coffee & Tea products.

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.