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

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

Customer preferences: Iraqi consumers have shown a growing preference for convenience and on-the-go consumption, which has fueled the demand for ready-to-drink beverages. The busy lifestyle of urban consumers and the increasing number of women in the workforce have contributed to the popularity of RTD coffee and tea products. Additionally, the younger population in Iraq, who are more open to trying new and innovative products, has also been a key driver of the market growth.

Trends in the market: One of the major trends in the RTD Coffee & Tea market in Iraq is the increasing popularity of iced coffee and tea beverages. The hot climate in the country has led to a high demand for refreshing and cooling drinks, making iced coffee and tea a preferred choice among consumers. Manufacturers have responded to this trend by introducing a wide range of iced coffee and tea flavors and variants to cater to different consumer preferences. Another trend in the market is the growing interest in healthier and natural products. Consumers are becoming more health-conscious and are seeking beverages that are low in sugar and free from artificial additives. As a result, there is a rising demand for RTD coffee and tea products that are made from natural ingredients and have reduced sugar content. Manufacturers are capitalizing on this trend by offering healthier options and promoting the natural and organic attributes of their products.

Local special circumstances: Iraq has a strong tea-drinking culture, with tea being a popular beverage consumed throughout the day. However, the younger generation is increasingly adopting coffee as their preferred choice of beverage. This shift in consumer preferences has led to a growing demand for RTD coffee products in the market. Additionally, the increasing popularity of Western coffee shop chains in urban areas has also contributed to the rising demand for RTD coffee.

Underlying macroeconomic factors: The improving economic conditions in Iraq, coupled with a growing middle class, have played a significant role in driving the growth of the RTD Coffee & Tea market. As disposable incomes rise, consumers have more purchasing power to spend on non-essential items such as ready-to-drink beverages. Furthermore, the expanding modern retail sector in the country, with the establishment of supermarkets and convenience stores, has made RTD coffee and tea products more accessible to consumers. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Iraq is witnessing robust growth due to changing customer preferences, including a preference for convenience and on-the-go consumption, the popularity of iced coffee and tea beverages, and the increasing demand for healthier and natural products. The local tea-drinking culture and the growing influence of Western coffee shop chains have also contributed to the market's development. The improving economic conditions and the expanding modern retail sector in Iraq are underlying macroeconomic factors that have further fueled the growth 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.