Ready-to-Drink (RTD) Tea - Baltics

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

Customer preferences: One of the key reasons for the growth of the RTD Tea market in Baltics is the increasing health consciousness among consumers. RTD Tea is perceived as a healthier alternative to carbonated soft drinks, as it is often made from natural ingredients and does not contain artificial additives. Consumers are becoming more aware of the negative health effects of sugary beverages and are actively seeking healthier options. Additionally, the convenience factor of RTD Tea also appeals to busy consumers who are looking for on-the-go refreshment.

Trends in the market: One of the major trends in the RTD Tea market in Baltics is the introduction of innovative flavors and ingredients. Manufacturers are constantly looking for ways to differentiate their products and attract consumers. This has led to the introduction of unique flavors such as matcha, hibiscus, and ginger, which appeal to consumers looking for new and exciting taste experiences. Additionally, there has been a growing trend towards using natural and organic ingredients in RTD Tea, as consumers are increasingly seeking products that are free from artificial additives and preservatives. Another trend in the market is the rising popularity of functional RTD Teas. These are teas that are infused with additional ingredients such as vitamins, minerals, and herbal extracts, which provide specific health benefits. Functional RTD Teas cater to consumers who are looking for more than just a refreshing beverage, but also want to support their overall health and well-being.

Local special circumstances: The Baltic region has a strong tea-drinking culture, with tea being a popular beverage choice for many consumers. This cultural preference for tea has played a significant role in the growth of the RTD Tea market in Baltics. Consumers are already familiar with the taste and benefits of tea, which makes RTD Tea an easy and appealing choice for them.

Underlying macroeconomic factors: The growing economy in the Baltic region has also contributed to the growth of the RTD Tea market. As disposable incomes rise, consumers have more purchasing power and are willing to spend on premium and healthier beverage options. This has created a favorable market environment for RTD Tea manufacturers, who are able to target a larger consumer base. In conclusion, the Ready-to-Drink (RTD) Tea market in Baltics is experiencing growth due to increasing health consciousness among consumers, the introduction of innovative flavors and ingredients, and the cultural preference for tea. Additionally, the growing economy in the region has also played a role in the market's development.

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.