Ready-to-Drink (RTD) Tea - Costa Rica

The Ready-to-Drink (RTD) Tea market in Costa Rica has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Costa Rican consumers are increasingly seeking healthier beverage options, and ready-to-drink tea fits this trend perfectly. RTD tea offers a refreshing and natural alternative to carbonated soft drinks, which have been linked to health concerns. Additionally, RTD tea is often perceived as a more sophisticated and premium beverage choice compared to other non-alcoholic options.

Trends in the market: One of the key trends in the RTD tea market in Costa Rica is the rising demand for natural and organic products. Consumers are becoming more conscious about the ingredients and production methods used in their beverages, and are willing to pay a premium for products that are perceived as healthier and more sustainable. As a result, many RTD tea brands in Costa Rica are focusing on using natural and organic ingredients, as well as promoting their environmentally friendly practices. Another trend in the market is the growing popularity of flavored RTD teas. Costa Rican consumers are increasingly looking for unique and exotic flavors, such as tropical fruits and herbs, in their beverages. This trend is driven by the country's rich biodiversity and the availability of a wide variety of local ingredients. RTD tea brands are capitalizing on this trend by introducing new and innovative flavors that cater to the local palate.

Local special circumstances: Costa Rica is known for its strong coffee culture, but tea consumption has been steadily increasing in recent years. This shift in beverage preferences can be attributed to several factors. Firstly, the growing health consciousness among consumers has led to a greater demand for alternative beverages, such as RTD tea. Additionally, Costa Rica's warm and tropical climate makes RTD tea a refreshing choice for many locals. Furthermore, the tourism industry in Costa Rica has played a significant role in driving the growth of the RTD tea market. The country attracts a large number of international tourists, many of whom come from countries with a strong tea-drinking culture. These tourists bring their preferences for RTD tea with them, creating a demand for these products in the local market.

Underlying macroeconomic factors: Costa Rica has experienced steady economic growth in recent years, which has contributed to the increasing disposable income of consumers. This has allowed them to spend more on premium and healthier beverage options, such as RTD tea. Additionally, the country has a relatively stable political environment and a well-developed infrastructure, which has facilitated the growth of the RTD tea market. In conclusion, the Ready-to-Drink (RTD) Tea market in Costa Rica is developing rapidly due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. Consumers are increasingly seeking healthier and more natural beverage options, and RTD tea fits this trend perfectly. The growing popularity of flavored RTD teas and the influence of the tourism industry have also contributed to the market's growth. With a stable economy and favorable business environment, Costa Rica is poised to become a key market for RTD tea in Central America.

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.