Ready-to-Drink (RTD) Tea - Cuba

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

Customer preferences: Cuban consumers have shown a growing preference for healthier beverage options, leading to an increased demand for RTD tea. As consumers become more health-conscious, they are seeking out beverages that offer both refreshment and nutritional benefits. RTD tea fits this demand perfectly, as it is perceived as a healthier alternative to carbonated soft drinks. Additionally, the convenience factor of RTD tea appeals to busy individuals who are looking for a quick and easy way to quench their thirst.

Trends in the market: One of the key trends in the RTD tea market in Cuba is the introduction of new flavors and variations. Manufacturers are constantly innovating and introducing new flavors to cater to the diverse taste preferences of consumers. This trend is driven by the desire to offer a unique and differentiated product that stands out in a crowded market. In addition to traditional tea flavors such as green tea and black tea, companies are also experimenting with fruit flavors and herbal infusions to attract a wider consumer base. Another trend in the market is the increasing availability of RTD tea in various distribution channels. While traditional retail outlets such as supermarkets and convenience stores remain popular, there has been a rise in the availability of RTD tea in cafes, restaurants, and online platforms. This expansion of distribution channels allows consumers to access RTD tea more easily and increases its visibility in the market.

Local special circumstances: Cuba's unique cultural heritage and history also play a role in the development of the RTD tea market. The country has a strong tea-drinking tradition, with herbal teas being a popular choice among locals. This cultural affinity for tea has created a favorable environment for the growth of the RTD tea market. Additionally, Cuba's tropical climate makes RTD tea a refreshing and appealing beverage option, especially during hot and humid weather.

Underlying macroeconomic factors: The improving economic conditions in Cuba have also contributed to the growth of the RTD tea market. As the country's economy continues to develop, disposable incomes are rising, allowing consumers to spend more on discretionary items such as beverages. This increase in purchasing power has led to a higher demand for RTD tea products. In conclusion, the Ready-to-Drink (RTD) Tea market in Cuba is experiencing growth due to changing customer preferences towards healthier beverages, the introduction of new flavors and variations, the increasing availability of RTD tea in various distribution channels, Cuba's cultural affinity for tea, and the improving economic conditions in the country. These factors have created a favorable environment for the development and expansion of the RTD tea market in Cuba.

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.