Ready-to-Drink (RTD) Tea - Ethiopia

The Ready-to-Drink (RTD) Tea market in Ethiopia is experiencing significant growth and development in recent years.

Customer preferences: Ethiopian consumers are increasingly seeking convenient and healthy beverage options, which has contributed to the rising demand for RTD tea. With busy lifestyles and a growing awareness of the importance of a balanced diet, consumers are looking for on-the-go options that offer both refreshment and nutritional benefits. RTD tea provides a convenient solution, as it is ready to consume and often contains natural ingredients such as tea extracts and fruit flavors.

Trends in the market: One of the key trends in the RTD tea market in Ethiopia is the introduction of innovative flavors and ingredients. Manufacturers are constantly exploring new taste profiles and incorporating local ingredients to cater to the diverse preferences of Ethiopian consumers. This has led to the emergence of unique and exotic flavors, such as hibiscus, mint, and ginger, which are popular among the local population. Additionally, there is a growing demand for organic and natural RTD tea products, as consumers are becoming more conscious of the ingredients used in their beverages. Another trend in the market is the increasing availability and accessibility of RTD tea products. Manufacturers are expanding their distribution networks and partnering with various retail channels, including supermarkets, convenience stores, and online platforms. This has made RTD tea more easily accessible to consumers across different regions of Ethiopia, driving the market growth.

Local special circumstances: Ethiopia has a rich tea culture, with tea being one of the most popular beverages in the country. Traditionally, tea is brewed and consumed hot, but the growing popularity of RTD tea indicates a shift in consumer preferences. The convenience and portability of RTD tea have made it a preferred choice for consumers, especially the younger generation who are more open to trying new and innovative beverage options.

Underlying macroeconomic factors: The economic growth and increasing disposable income in Ethiopia have also contributed to the development of the RTD tea market. As consumers have more purchasing power, they are willing to spend on premium and healthier beverage options. This has created opportunities for both local and international RTD tea brands to enter the market and cater to the evolving consumer demands. In conclusion, the Ready-to-Drink (RTD) Tea market in Ethiopia is witnessing growth and development driven by factors such as changing customer preferences, introduction of innovative flavors, increased availability, and favorable macroeconomic conditions. As the market continues to evolve, manufacturers need to adapt to the changing consumer demands and preferences to capitalize on the opportunities in this growing segment.

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.