Ready-to-Drink (RTD) Tea - G7

The Ready-to-Drink (RTD) Tea market in G7 is experiencing significant growth and development due to changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Customers in the G7 countries have shown a growing preference for healthier beverage options, which has led to an increased demand for ready-to-drink tea. RTD tea is perceived as a healthier alternative to carbonated soft drinks and other sugary beverages. It is often marketed as a natural and refreshing drink, appealing to health-conscious consumers. Additionally, the convenience of RTD tea, with its ready-to-consume format, has also contributed to its popularity among busy urban consumers.

Trends in the market: One of the key trends in the RTD tea market in the G7 is the growing popularity of flavored and functional teas. Consumers are increasingly seeking unique and innovative flavors, such as fruit-infused and herbal teas. This trend is driven by the desire for variety and new taste experiences. Additionally, functional teas, which offer specific health benefits such as detoxification or relaxation, are gaining traction among health-conscious consumers. Another trend in the market is the rise of premium and organic RTD teas. Consumers are willing to pay a premium for high-quality teas that are sourced from sustainable and organic farms. This trend is driven by the increasing awareness of the environmental impact of food production and the desire for natural, chemical-free products.

Local special circumstances: Each G7 country has its own unique set of circumstances that influence the development of the RTD tea market. For example, in the United States, the growing trend of health and wellness has driven the demand for RTD tea as a healthier alternative to sugary beverages. In Japan, the traditional tea-drinking culture has paved the way for the widespread acceptance and consumption of RTD tea.

Underlying macroeconomic factors: The growth of the RTD tea market in the G7 is also influenced by underlying macroeconomic factors. Factors such as rising disposable incomes, urbanization, and changing demographics play a significant role in driving the demand for RTD tea. As disposable incomes increase, consumers have more purchasing power to spend on premium and healthier beverage options. Urbanization leads to a faster pace of life, increasing the demand for convenient and ready-to-consume products like RTD tea. Changing demographics, such as an aging population, also contribute to the growth of the market as older consumers seek healthier alternatives to traditional beverages. In conclusion, the Ready-to-Drink (RTD) Tea market in G7 is experiencing growth and development due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for healthier and more convenient beverage options, along with the popularity of flavored and functional teas, is driving the growth of the market. Additionally, the rise of premium and organic RTD teas reflects consumers' desire for high-quality and sustainable products. The unique circumstances and macroeconomic factors in each G7 country further shape the development of the RTD tea market.

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.