Ready-to-Drink (RTD) Tea - Northern Europe

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

Customer preferences: One of the main reasons behind the growth of the RTD Tea market in Northern Europe is the increasing consumer demand for healthier beverage options. As people become more health-conscious, they are looking for alternatives to sugary carbonated drinks. RTD teas, which are often made with natural ingredients and have lower sugar content, are seen as a healthier choice. Additionally, the convenience factor of RTD teas appeals to busy consumers who are looking for on-the-go options.

Trends in the market: One trend that has been observed in the RTD Tea market in Northern Europe is the introduction of innovative flavors and ingredients. Manufacturers are constantly coming up with new and unique combinations to attract consumers. For example, there has been a rise in the popularity of herbal and fruit-infused RTD teas, as well as teas with added functional benefits such as antioxidants or probiotics. Another trend in the market is the growing popularity of organic and sustainable RTD teas. Consumers in Northern Europe are increasingly concerned about the environmental impact of their purchasing decisions, and they are willing to pay a premium for products that are produced in an environmentally friendly and socially responsible manner. This has led to an increase in the availability of organic and sustainably sourced RTD teas in the market.

Local special circumstances: One factor that has contributed to the growth of the RTD Tea market in Northern Europe is the region's strong tea-drinking culture. Tea has long been a popular beverage in countries like the United Kingdom and Sweden, and consumers in these countries are open to trying new tea-based products. This cultural acceptance of tea as a beverage has created a favorable environment for the growth of the RTD Tea market.

Underlying macroeconomic factors: The growing RTD Tea market in Northern Europe can also be attributed to favorable macroeconomic factors. The region has a high disposable income, which allows consumers to spend more on premium and healthier beverage options. Additionally, the region has a well-developed retail infrastructure, with a wide range of distribution channels available for RTD tea products. This makes it easier for manufacturers to reach their target consumers and drive sales. In conclusion, the Ready-to-Drink (RTD) Tea market in Northern Europe is experiencing growth due to increasing consumer demand for healthier and more convenient beverage options. The introduction of innovative flavors, the popularity of organic and sustainable products, and the region's strong tea-drinking culture are all contributing to this growth. Additionally, favorable macroeconomic factors such as high disposable income and a well-developed retail infrastructure are supporting the expansion 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.