Ready-to-Drink (RTD) Tea - Latvia

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

Customer preferences: Latvian consumers have shown a growing interest in healthier beverage options, which has contributed to the rise in the RTD tea market. RTD teas are perceived as a healthier alternative to carbonated soft drinks, as they often contain natural ingredients and are lower in sugar. Additionally, the convenience factor of ready-to-drink beverages appeals to busy consumers who are looking for quick and easy refreshment on the go.

Trends in the market: One of the key trends in the RTD tea market in Latvia is the increasing demand for natural and organic products. Consumers are becoming more conscious about the ingredients in their food and beverages, and are actively seeking out products that are free from artificial additives and preservatives. This trend has led to the emergence of a variety of organic and natural RTD tea brands in the market. Another notable trend is the growing popularity of flavored RTD teas. Manufacturers are constantly innovating and introducing new flavors to cater to the diverse preferences of consumers. Flavors such as green tea with lemon, peach, and berry have gained traction among Latvian consumers.

Local special circumstances: Latvia has a rich tea-drinking culture, with tea being a popular beverage choice among the population. However, traditionally, Latvians have preferred hot tea over cold beverages. The growing popularity of RTD teas indicates a shift in consumer preferences towards more convenient and refreshing options.

Underlying macroeconomic factors: Latvia has experienced steady economic growth in recent years, which has contributed to an increase in disposable incomes. As a result, consumers have more purchasing power and are willing to spend on premium and healthier beverage options like RTD teas. The growing middle class in Latvia is also driving the demand for RTD teas, as they are seen as a status symbol and a way to indulge in a luxurious lifestyle. In conclusion, the Ready-to-Drink (RTD) Tea market in Latvia is witnessing growth due to changing customer preferences towards healthier and more convenient beverage options. The demand for natural and organic products, as well as flavored RTD teas, is on the rise. The local tea-drinking culture and the country's economic growth are also contributing factors to the development of the 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.