Ready-to-Drink (RTD) Tea - Bulgaria

The Ready-to-Drink (RTD) Tea market in Bulgaria has been experiencing steady growth in recent years, driven by changing consumer preferences and the increasing popularity of healthier beverage options.

Customer preferences: Bulgarian consumers have shown a growing interest in healthier beverage options, with many opting for ready-to-drink teas as a refreshing and nutritious alternative to carbonated soft drinks. This shift in consumer preferences can be attributed to a growing awareness of the health benefits associated with tea consumption, such as its antioxidant properties and potential to improve digestion. Additionally, the convenience and portability of RTD teas make them an attractive option for on-the-go consumers.

Trends in the market: One of the key trends in the RTD Tea market in Bulgaria is the increasing demand for natural and organic products. Consumers are becoming more conscious of the ingredients used in their beverages and are actively seeking out products that are free from artificial additives and preservatives. As a result, many companies in the RTD Tea market are focusing on developing and promoting natural and organic options to cater to this growing demand. Another trend in the market is the introduction of innovative flavors and blends. While traditional tea flavors such as green tea and black tea remain popular, there has been a rise in the popularity of unique and exotic flavors, such as hibiscus, jasmine, and fruit-infused teas. This trend is driven by consumers' desire for new and exciting taste experiences.

Local special circumstances: Bulgaria has a strong tea-drinking culture, with a history of tea consumption dating back several centuries. This cultural affinity for tea has contributed to the growth of the RTD Tea market in the country. Additionally, the relatively lower cost of RTD teas compared to other beverages has made them accessible to a wide range of consumers, further driving market growth.

Underlying macroeconomic factors: The growing RTD Tea market in Bulgaria can also be attributed to favorable macroeconomic factors. The country has experienced stable economic growth in recent years, leading to an increase in disposable income levels. This has allowed consumers to have more purchasing power and spend on premium and healthier beverage options, such as RTD teas. Furthermore, the increasing urbanization and Westernization of Bulgarian society have also played a role in shaping consumer preferences and driving the demand for RTD teas.

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.