Ready-to-Drink (RTD) Tea - D-A-CH

The Ready-to-Drink (RTD) Tea market in D-A-CH, which includes Germany, Austria, and Switzerland, is experiencing significant growth due to changing customer preferences and local special circumstances.

Customer preferences: Consumers in the D-A-CH region are increasingly seeking healthier and more convenient beverage options, which has led to a rise in the popularity of RTD tea. With busy lifestyles and a growing awareness of the importance of health and wellness, consumers are looking for beverages that offer both refreshment and nutritional benefits. RTD tea meets these demands by providing a convenient and ready-to-consume option that is perceived as a healthier alternative to carbonated soft drinks.

Trends in the market: One of the key trends in the RTD tea market in D-A-CH is the growing demand for natural and organic products. Consumers are becoming more conscious of the ingredients in their beverages and are actively seeking out products that are made with natural ingredients and free from artificial additives. This trend is driving the development of new RTD tea products that are made with organic tea leaves and sweetened with natural sweeteners like stevia. Additionally, there is a rising interest in herbal and fruit-infused RTD teas, which offer unique flavors and health benefits. Another trend in the market is the increasing popularity of functional RTD teas. These products are formulated with added vitamins, minerals, and other functional ingredients to provide specific health benefits. For example, RTD teas with added antioxidants or probiotics are gaining traction among health-conscious consumers. This trend is driven by the growing interest in preventive healthcare and the desire to incorporate functional ingredients into everyday beverages.

Local special circumstances: In Germany, tea has a long-standing tradition and is deeply ingrained in the culture. This cultural affinity for tea has contributed to the growing popularity of RTD tea in the country. German consumers appreciate the variety of flavors and the health benefits that RTD tea offers, making it a preferred choice for many. In Austria, there is a strong emphasis on quality and craftsmanship. This has led to the development of premium RTD tea brands that cater to the discerning tastes of Austrian consumers. These brands focus on using high-quality tea leaves and innovative flavor combinations to create a unique and indulgent drinking experience. In Switzerland, the demand for RTD tea is driven by the country's reputation for producing high-quality and natural products. Swiss consumers are known for their preference for organic and sustainably sourced products, and this extends to their choice of beverages. RTD tea brands that emphasize their commitment to sustainability and environmental responsibility are well-received in the Swiss market.

Underlying macroeconomic factors: The growth of the RTD tea market in D-A-CH is also influenced by underlying macroeconomic factors. These include factors such as rising disposable incomes, urbanization, and changing demographics. As disposable incomes increase, consumers are more willing to spend on premium and healthier beverage options like RTD tea. The growing urban population also contributes to the demand for convenient and on-the-go beverages. Furthermore, changing demographics, such as an aging population and an increasing number of health-conscious millennials, are driving the demand for healthier beverage choices like RTD tea. In conclusion, the Ready-to-Drink (RTD) Tea market in D-A-CH is experiencing growth due to changing customer preferences for healthier and more convenient beverages, as well as local special circumstances such as cultural affinity for tea and emphasis on quality. The market is also influenced by underlying macroeconomic factors such as rising disposable incomes and changing demographics.

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.