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

The Ready-to-Drink (RTD) Coffee & Tea market in Laos is experiencing significant growth due to changing customer preferences and favorable local circumstances.

Customer preferences: Laos, like many other countries in Southeast Asia, has a strong tea-drinking culture. However, in recent years, there has been a shift in customer preferences towards ready-to-drink coffee and tea beverages. This can be attributed to the increasing influence of Western culture, urbanization, and the desire for convenience among consumers.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Laos is the rising demand for healthier and more natural products. Consumers are becoming more conscious about their health and are actively seeking beverages that are low in sugar, free from artificial additives, and made from natural ingredients. This trend is driving the growth of products that are marketed as "all-natural," "organic," or "sugar-free. " Another trend in the market is the growing popularity of premium and specialty RTD coffee and tea products. Consumers are willing to pay a premium for high-quality and unique flavors, such as matcha, chai, or cold brew coffee. This trend is driven by the increasing disposable income and the desire for indulgent and luxurious experiences among consumers.

Local special circumstances: Laos is a landlocked country with a predominantly rural population. However, in recent years, there has been a rapid urbanization and modernization of the country, particularly in the capital city of Vientiane. This has led to an increase in the number of convenience stores, supermarkets, and cafes, which provide easy access to RTD coffee and tea products. Furthermore, the hot and humid climate in Laos makes cold beverages highly desirable among consumers. RTD coffee and tea products, especially those that are served chilled or with ice, are seen as refreshing and thirst-quenching options for consumers, particularly during the hot summer months.

Underlying macroeconomic factors: Laos has been experiencing steady economic growth in recent years, which has led to an increase in disposable income and a growing middle class. This has resulted in higher purchasing power and increased spending on non-essential items, such as RTD coffee and tea beverages. Moreover, the tourism industry in Laos has been growing rapidly, attracting a large number of international tourists. These tourists often seek out local food and beverage experiences, including trying the traditional coffee and tea of the country. This has created opportunities for both local and international RTD coffee and tea brands to expand their presence in the market. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Laos is growing due to changing customer preferences, such as the shift towards convenience and healthier options, as well as favorable local circumstances, such as urbanization and the hot climate. The market is also influenced by underlying macroeconomic factors, such as increasing disposable income and the growth of the tourism industry.

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.