Ready-to-Drink (RTD) Tea - Australia & Oceania

The Ready-to-Drink (RTD) Tea market in Australia & Oceania is experiencing significant growth and development.

Customer preferences: In recent years, there has been a growing trend towards healthier beverage options, and ready-to-drink tea has emerged as a popular choice among consumers in Australia & Oceania. This can be attributed to several factors, including the increasing awareness of the health benefits of tea, such as its antioxidant properties and potential to aid in weight loss. Additionally, the convenience and portability of RTD tea products make them appealing to busy consumers who are looking for on-the-go options.

Trends in the market: One of the key trends in the RTD tea market in Australia & Oceania is the rise in demand for natural and organic products. Consumers are becoming more conscious about the ingredients used in their beverages and are seeking out products that are free from artificial additives and preservatives. As a result, companies in the region are introducing new RTD tea products that are made from natural and organic ingredients to cater to this growing demand. Another trend in the market is the introduction of innovative flavors and blends. Traditional tea flavors, such as green tea and black tea, continue to be popular, but there is also a growing demand for unique and exotic flavors. Companies are experimenting with different ingredients, such as fruits, herbs, and spices, to create new and exciting flavor combinations that appeal to a wider range of consumers.

Local special circumstances: Australia & Oceania is known for its diverse and multicultural population, and this has influenced the RTD tea market in the region. Consumers from different cultural backgrounds have brought their tea-drinking traditions and preferences, resulting in a wide variety of tea products available in the market. For example, there is a strong demand for traditional Asian tea flavors, such as jasmine tea and oolong tea, among the Asian communities in Australia. Additionally, the climate in Australia & Oceania is conducive to the consumption of cold beverages, which has contributed to the popularity of RTD tea products. The region experiences hot summers, and consumers often look for refreshing and hydrating drinks to cool down. RTD tea provides a convenient and refreshing option for consumers during the hot weather.

Underlying macroeconomic factors: The growing RTD tea market in Australia & Oceania can also be attributed to the region's strong economy and increasing disposable income. As the economy continues to grow, consumers have more purchasing power and are willing to spend on premium and higher-priced RTD tea products. This has led to the introduction of premium and specialty RTD tea brands in the market, catering to the demand for high-quality and unique products. Furthermore, the increasing focus on health and wellness is a global trend that is also influencing the RTD tea market in Australia & Oceania. Consumers are becoming more health-conscious and are actively seeking out products that align with their healthy lifestyle choices. RTD tea, with its natural and health benefits, fits well into this trend and is expected to continue growing in popularity in the region.

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.