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

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

Customer preferences: One of the main reasons for the growth of the RTD Coffee & Tea market in India is the changing preferences of customers. As the country becomes more urbanized and fast-paced, there is a growing demand for convenient and on-the-go beverage options. RTD Coffee & Tea products provide a quick and easy solution for consumers who are looking for a refreshing and energizing drink without the need for brewing or steeping.

Trends in the market: The RTD Coffee & Tea market in India is witnessing several key trends. Firstly, there is a rising awareness and appreciation for international coffee and tea flavors among Indian consumers. As more people travel abroad and are exposed to different cultures and cuisines, they develop a taste for foreign beverages. This has led to an increase in the availability of imported RTD Coffee & Tea brands in the Indian market. Secondly, there is a growing emphasis on health and wellness among Indian consumers. Many RTD Coffee & Tea brands are capitalizing on this trend by offering products that are low in sugar, calories, and artificial additives. These healthier options are appealing to health-conscious individuals who want to enjoy a refreshing beverage without compromising on their dietary goals.

Local special circumstances: India has a rich tea-drinking culture, with tea being the most consumed beverage in the country. However, the popularity of coffee has been on the rise in recent years, especially among the younger generation. This shift in preferences has created a favorable environment for the growth of the RTD Coffee & Tea market in India. Another local special circumstance is the presence of a large and growing middle class in India. As disposable incomes rise and lifestyles become more hectic, consumers are willing to spend more on convenient and premium products. This has created a lucrative market for RTD Coffee & Tea brands that offer high-quality and innovative beverages.

Underlying macroeconomic factors: The development of the RTD Coffee & Tea market in India can also be attributed to several macroeconomic factors. Firstly, India is experiencing rapid urbanization and a shift towards a more modern and fast-paced lifestyle. This has led to an increase in the demand for convenient and ready-to-consume products, including RTD Coffee & Tea. Secondly, the growth of the Indian economy has resulted in an expansion of the middle class and an increase in disposable incomes. This has created a larger consumer base with the purchasing power to afford premium and imported RTD Coffee & Tea brands. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in India is growing due to changing customer preferences, the emergence of new trends, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, it is expected that the demand for RTD Coffee & Tea products will continue to rise, providing opportunities for both domestic and international brands.

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.