Ready-to-Drink (RTD) Coffee & Tea - New Zealand

New Zealand, known for its breathtaking landscapes and outdoor activities, is also home to a growing Ready-to-Drink (RTD) Coffee & Tea market. With its unique customer preferences, local special circumstances, and underlying macroeconomic factors, the market in New Zealand is experiencing notable trends and developments.

Customer preferences: In New Zealand, there is a growing demand for convenience and on-the-go options, which has significantly contributed to the rise of the RTD Coffee & Tea market. The fast-paced lifestyle of urban dwellers and the increasing number of time-constrained consumers have led to a shift in beverage consumption patterns. RTD Coffee & Tea products provide a quick and convenient solution for those seeking a caffeine boost or a refreshing drink without the need for brewing or preparation.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in New Zealand is the increasing popularity of cold brew coffee. Cold brew coffee is known for its smooth and less acidic taste, which appeals to consumers who prefer a milder flavor profile. This trend aligns with the growing interest in specialty coffee and the desire for unique and premium beverages. As a result, there has been a surge in the availability and variety of cold brew coffee options in the market. Another trend in the market is the emphasis on natural and healthy ingredients. Consumers in New Zealand are becoming more conscious of their health and wellness, and they are actively seeking products that align with their values. This has led to a rise in demand for RTD Coffee & Tea products that are made with natural ingredients, free from artificial additives, and have reduced sugar content. Manufacturers are responding to this trend by introducing healthier options and promoting the use of sustainably sourced ingredients.

Local special circumstances: New Zealand's coffee culture is well-known, with a strong preference for high-quality coffee and unique flavor profiles. This cultural inclination towards coffee has influenced the RTD Coffee & Tea market, with consumers seeking products that replicate the taste and experience of freshly brewed coffee. As a result, there is a demand for RTD Coffee & Tea products that offer a premium and authentic coffee taste, along with convenient packaging. Additionally, New Zealand's tourism industry plays a significant role in the RTD Coffee & Tea market. As a popular tourist destination, the country attracts visitors from around the world who are eager to experience its natural beauty. These tourists often look for familiar and convenient beverages, such as RTD Coffee & Tea, that they can enjoy on their travels. This has created a market opportunity for both local and international brands to cater to the needs of tourists and expand their presence in the country.

Underlying macroeconomic factors: New Zealand's strong economy and stable consumer spending have contributed to the growth of the RTD Coffee & Tea market. With a rising disposable income and a growing middle class, consumers have more purchasing power and are willing to spend on premium and convenient products. This has encouraged manufacturers to invest in product development and innovation, resulting in a wider range of RTD Coffee & Tea options available in the market. Furthermore, the influence of global trends and the increasing presence of international brands in New Zealand have also shaped the RTD Coffee & Tea market. As consumers become more exposed to international flavors and beverage trends, there is a demand for diverse and innovative RTD Coffee & Tea products. This has led to collaborations between local and international brands, as well as the introduction of new flavors and formulations to cater to evolving consumer preferences. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in New Zealand is experiencing significant growth due to customer preferences for convenience and on-the-go options, the popularity of cold brew coffee, the emphasis on natural and healthy ingredients, the country's coffee culture and tourism industry, as well as the underlying macroeconomic factors of a strong economy and global influences. As the market continues to evolve, it presents opportunities for both local and international brands to capture the attention of New Zealand consumers and cater to their evolving tastes and preferences.

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.