Ready-to-Drink (RTD) Coffee - Laos

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

Customer preferences: Laos is known for its hot and humid climate, making it an ideal market for refreshing and convenient beverages like RTD coffee. The convenience factor of RTD coffee appeals to busy urban consumers who are looking for a quick and easy caffeine fix on the go. Additionally, the younger generation in Laos is increasingly adopting a more Westernized lifestyle, which includes the consumption of RTD coffee as a trendy and fashionable beverage choice.

Trends in the market: One of the key trends in the RTD coffee market in Laos is the increasing demand for premium and specialty RTD coffee products. As consumers become more sophisticated in their taste preferences, they are willing to pay a premium for higher quality and unique flavors. This trend is driven by the growing middle class in Laos, who have higher disposable incomes and are willing to spend more on indulgent food and beverages. Another trend in the market is the rise of local coffee brands and cafes. Laos has a rich coffee culture, with a long history of coffee cultivation and production. Local coffee brands are capitalizing on this heritage and are offering RTD coffee products that showcase the unique flavors and characteristics of Laos-grown coffee beans. This trend is also supported by the increasing interest in specialty coffee among consumers, who are looking for a more authentic and local coffee experience.

Local special circumstances: Laos is a landlocked country with a small population compared to its neighboring countries. This presents both opportunities and challenges for the RTD coffee market. On one hand, the small population size limits the overall market potential. On the other hand, it allows for targeted marketing and product development strategies to cater to the specific needs and preferences of the local consumers.

Underlying macroeconomic factors: Laos has been experiencing steady economic growth in recent years, which has contributed to the growth of the RTD coffee market. The rising disposable incomes and improving living standards of the population have led to increased consumer spending on non-essential items, including RTD coffee. Additionally, the government's efforts to promote tourism and attract foreign investment have also had a positive impact on the overall economy, creating a favorable business environment for the RTD coffee 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.