Ready-to-Drink (RTD) Tea - Luxembourg

Luxembourg, a small European country known for its high standard of living, is also witnessing a growing demand for Ready-to-Drink (RTD) Tea. This trend can be attributed to several factors, including customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Luxembourg, like in many other countries, there is a growing trend towards healthier beverage options. As consumers become more health-conscious, they are seeking alternatives to sugary carbonated drinks. RTD Tea offers a refreshing and healthier option, as it is often made from natural ingredients and can be low in calories. Additionally, the convenience of RTD Tea appeals to busy consumers who are looking for a quick and easy beverage option.

Trends in the market: The RTD Tea market in Luxembourg is experiencing significant growth due to the availability of a wide range of flavors and varieties. Manufacturers are constantly introducing new and innovative flavors to cater to the diverse tastes of consumers. Furthermore, the rising popularity of specialty teas, such as green tea and herbal tea, is contributing to the growth of the market. These teas are often perceived as having health benefits, which further drives their demand.

Local special circumstances: Luxembourg's location in the heart of Europe makes it an attractive market for RTD Tea manufacturers. The country is a hub for international business and attracts a large number of expatriates and tourists. These individuals bring with them their own preferences and demand for RTD Tea, leading to a diverse and vibrant market. Additionally, the country's high disposable income and willingness to spend on premium products contribute to the growth of the RTD Tea market.

Underlying macroeconomic factors: Luxembourg's strong economy and high standard of living play a significant role in the growth of the RTD Tea market. The country has a stable and prosperous economy, which allows consumers to have disposable income to spend on non-essential items like RTD Tea. Furthermore, the country's favorable business environment attracts international companies, which in turn leads to an increase in the availability and variety of RTD Tea products. In conclusion, the Ready-to-Drink (RTD) Tea market in Luxembourg is experiencing growth due to customer preferences for healthier beverage options, market trends towards diverse flavors and varieties, local special circumstances such as the country's international business hub status, and underlying macroeconomic factors such as a strong economy and high disposable income. As these factors continue to drive demand, the RTD Tea market in Luxembourg is expected to grow further in the coming years.

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.