Ready-to-Drink (RTD) Tea - GCC

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

Customer preferences: Consumers in the GCC region are increasingly seeking healthier beverage options, and RTD tea fits this trend perfectly. RTD tea is perceived as a healthier alternative to carbonated soft drinks, as it is often made with natural ingredients and contains less sugar. Additionally, the convenience factor of RTD tea appeals to busy consumers who are looking for a refreshing and hydrating drink on-the-go.

Trends in the market: One of the key trends in the RTD tea market in the GCC is the growing popularity of flavored and functional teas. Consumers are looking for unique and exotic flavors, such as green tea with lemon or mint, and are also interested in teas that offer specific health benefits, such as detoxifying or immune-boosting properties. This trend is driving innovation in the market, with manufacturers introducing new and exciting flavors and functional ingredients. Another trend in the market is the increasing demand for premium and organic RTD teas. As consumers become more health-conscious, they are willing to pay a premium for high-quality teas that are made with organic ingredients and have a superior taste. This trend is particularly prominent in countries like the United Arab Emirates and Saudi Arabia, where there is a growing middle class with higher disposable incomes.

Local special circumstances: The GCC region has a hot climate, which makes RTD tea a particularly appealing beverage choice. The refreshing and hydrating nature of RTD tea makes it a popular choice among consumers, especially during the summer months. Additionally, the cultural preference for tea in the region also contributes to the growth of the RTD tea market. Tea is deeply ingrained in the culture of the GCC countries, and RTD tea allows consumers to enjoy their favorite beverage in a convenient and ready-to-drink format.

Underlying macroeconomic factors: The growing population and increasing disposable incomes in the GCC region are key macroeconomic factors driving the growth of the RTD tea market. As the population continues to grow, the demand for convenient and healthy beverage options is also increasing. Additionally, the rising disposable incomes in the region are enabling consumers to spend more on premium and organic products, including RTD teas. In conclusion, the Ready-to-Drink (RTD) Tea market in GCC is experiencing significant growth due to consumer preferences for healthier beverage options, the popularity of flavored and functional teas, the demand for premium and organic products, the hot climate, the cultural preference for tea, and the growing population and disposable incomes in the region. These factors are driving innovation and expansion in the RTD tea market, making it an attractive and lucrative industry for manufacturers and retailers in the GCC region.

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.