Ready-to-Drink (RTD) Tea - Asia

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

Customer preferences: One of the key factors driving the growth of the RTD Tea market in Asia is the increasing consumer preference for healthier beverage options. As people become more health-conscious, they are seeking out alternatives to sugary carbonated beverages. RTD Tea offers a refreshing and natural option, often made with real tea leaves and infused with various flavors. This appeals to consumers who are looking for a healthier and more natural alternative to traditional soft drinks.

Trends in the market: The RTD Tea market in Asia is witnessing a number of trends that are shaping its development. One of the major trends is the rise of premium and artisanal RTD Tea brands. These brands differentiate themselves by offering high-quality teas sourced from specific regions and using unique brewing techniques. This appeals to consumers who are willing to pay a premium for a more authentic and sophisticated tea-drinking experience. Another trend in the market is the growing popularity of functional RTD Teas. These teas are infused with ingredients such as herbs, fruits, and botanicals that offer specific health benefits. For example, some RTD Teas are formulated to aid digestion, boost immunity, or promote relaxation. This trend reflects the increasing demand for beverages that not only taste good but also provide added health benefits.

Local special circumstances: In countries like China and Japan, where tea has a long and rich history, there is a strong cultural affinity for RTD Tea. Tea is deeply ingrained in the daily lives of people in these countries, and RTD Tea allows them to enjoy their favorite beverage on-the-go. Additionally, the convenience and portability of RTD Tea make it a popular choice among busy urban consumers who are looking for a quick and refreshing drink.

Underlying macroeconomic factors: The growth of the RTD Tea market in Asia can also be attributed to favorable macroeconomic factors. Rising disposable incomes and changing lifestyles have led to an increase in consumer spending on beverages. As the middle class expands in countries like China and India, more people have the financial means to afford premium RTD Tea products. Moreover, the rapid urbanization and the growth of modern retail channels have made RTD Tea more accessible to a larger population. In conclusion, the Ready-to-Drink (RTD) Tea market in Asia is experiencing significant growth due to changing customer preferences, emerging trends, local cultural circumstances, and favorable macroeconomic factors. As consumers increasingly seek out healthier and more natural beverage options, RTD Tea provides a refreshing and convenient choice. The market is witnessing the rise of premium and functional RTD Tea brands, catering to consumers' desire for high-quality and health-enhancing beverages. With the increasing disposable incomes and urbanization in the region, the market is expected to continue its upward trajectory in the coming years.

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.