Ready-to-Drink (RTD) Tea - Cyprus

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

Customer preferences: Cyprus has a long-standing tradition of tea consumption, with a strong preference for hot tea. However, in recent years, there has been a shift in consumer preferences towards ready-to-drink beverages, including RTD tea. This shift can be attributed to several factors, including convenience, health consciousness, and the desire for more variety in beverage options.

Trends in the market: One of the key trends in the RTD tea market in Cyprus is the increasing demand for healthier and natural options. Consumers are becoming more conscious of their health and are actively seeking out beverages that are low in sugar and free from artificial additives. As a result, there has been a rise in the availability of RTD tea products that are made with natural ingredients, such as herbal teas and green teas. Another trend in the market is the growing popularity of flavored RTD teas. Cyprus has a diverse population with a range of cultural backgrounds, and this has led to an increased demand for flavored teas that cater to different tastes and preferences. Flavored RTD teas, such as fruit-infused teas and exotic blends, have gained popularity among consumers looking for unique and refreshing beverages.

Local special circumstances: One of the unique aspects of the RTD tea market in Cyprus is the influence of the Mediterranean diet. The Mediterranean diet is known for its emphasis on fresh and natural ingredients, and this has translated into the RTD tea market as well. Consumers in Cyprus are more likely to choose RTD tea products that are made with natural ingredients and are free from artificial additives. This preference for natural and healthy options has shaped the product offerings in the market, with many brands focusing on promoting the health benefits of their RTD tea products.

Underlying macroeconomic factors: The growth of the RTD tea market in Cyprus can also be attributed to several underlying macroeconomic factors. The country has experienced a period of economic stability in recent years, which has led to an increase in disposable income and consumer spending. As a result, consumers in Cyprus have more purchasing power and are willing to spend on premium and high-quality RTD tea products. Additionally, the tourism industry plays a significant role in driving the growth of the RTD tea market in Cyprus. The country attracts a large number of tourists each year, many of whom are looking to experience the local culture and cuisine. This presents an opportunity for RTD tea brands to showcase their products to a diverse range of consumers and expand their market presence.

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.