Ready-to-Drink (RTD) Tea - BRICS

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

Customer preferences: In recent years, there has been a growing trend among consumers in BRICS countries towards healthier beverage options. This has led to an increased demand for Ready-to-Drink (RTD) Tea, which is perceived as a healthier alternative to carbonated soft drinks. Consumers are increasingly looking for beverages that are low in sugar and calories, and RTD Tea fits this requirement perfectly. Additionally, the convenience factor of RTD Tea, which allows consumers to enjoy a refreshing beverage on-the-go, has also contributed to its popularity.

Trends in the market: The RTD Tea market in BRICS countries is witnessing several key trends. Firstly, there is a growing demand for natural and organic RTD Tea products. Consumers are becoming more conscious about the ingredients used in their beverages and are willing to pay a premium for products that are made from natural and organic ingredients. This trend is particularly strong in Brazil and China, where consumers are increasingly seeking out healthier and more sustainable options. Another trend in the market is the introduction of innovative flavors and blends. Manufacturers are constantly coming up with new and unique flavor combinations to cater to the diverse tastes of consumers. For example, in India, masala chai flavored RTD Teas have gained popularity, while in Russia, fruit-infused RTD Teas are in high demand. These innovative flavors and blends help to differentiate brands in a crowded market and attract consumers.

Local special circumstances: Each country in BRICS has its own unique set of circumstances that influence the RTD Tea market. In China, for example, the market is dominated by domestic brands that have a strong presence and brand loyalty among consumers. The Chinese market is also known for its wide variety of RTD Tea products, ranging from traditional green tea to milk tea. On the other hand, in Brazil, the market is more fragmented, with a mix of local and international brands competing for market share.

Underlying macroeconomic factors: The growth of the RTD Tea market in BRICS countries can be attributed to several macroeconomic factors. Firstly, the rising disposable incomes of consumers in these countries have led to an increase in purchasing power and discretionary spending. As a result, consumers are more willing to spend on premium and healthier beverage options like RTD Tea. Furthermore, urbanization and changing lifestyles have also played a role in the growth of the RTD Tea market. As more people move to cities and lead busy lives, there is a greater demand for convenient and on-the-go beverage options. RTD Tea provides a convenient and refreshing solution for consumers who are constantly on the move. In conclusion, the Ready-to-Drink (RTD) Tea market in BRICS is experiencing growth and development due to changing customer preferences towards healthier beverages, the introduction of innovative flavors and blends, local special circumstances, and underlying macroeconomic factors such as rising disposable incomes and urbanization.

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.