Ready-to-Drink (RTD) Tea - Panama

The Ready-to-Drink (RTD) Tea market in Panama has been experiencing significant growth in recent years. Customer preferences for healthier beverage options, convenience, and unique flavors have been driving this growth.

Customer preferences: Customers in Panama have been increasingly seeking healthier alternatives to sugary carbonated drinks. Ready-to-Drink (RTD) Tea offers a refreshing and healthier option, as it is often made from natural ingredients and contains less sugar compared to carbonated beverages. Additionally, RTD Tea is often perceived as a convenient option for on-the-go consumption, which aligns with the busy lifestyles of many Panamanians.

Trends in the market: One of the key trends in the RTD Tea market in Panama is the growing demand for unique flavors and blends. Consumers are looking for variety and are open to trying new and exotic flavors. This trend has led to the introduction of innovative RTD Tea products with flavors such as passion fruit, hibiscus, and green tea with coconut water. Manufacturers have recognized this trend and are continuously launching new flavors to cater to consumer preferences. Another trend in the market is the increasing availability of RTD Tea in different packaging formats. While traditional glass bottles and cans are still popular, there has been a rise in the use of PET bottles and tetra packs. These packaging formats offer convenience and portability, making it easier for consumers to enjoy RTD Tea while on the move.

Local special circumstances: Panama's tropical climate and cultural preferences for tea have also contributed to the growth of the RTD Tea market. The warm weather in Panama makes RTD Tea a refreshing and popular beverage choice. Additionally, tea has a long-standing cultural significance in Panama, with traditional herbal teas being consumed for their health benefits. This cultural preference for tea has translated into a growing demand for RTD Tea products in the market.

Underlying macroeconomic factors: The growing middle class, urbanization, and rising disposable incomes in Panama have also played a role in the development of the RTD Tea market. As more people move to urban areas and experience an increase in purchasing power, they are able to afford premium and healthier beverage options such as RTD Tea. This trend is expected to continue as the Panamanian economy grows and consumer spending power increases. In conclusion, the Ready-to-Drink (RTD) Tea market in Panama is thriving due to customer preferences for healthier options, convenience, and unique flavors. The market is driven by the demand for refreshing and healthier beverages, the availability of innovative flavors, and the cultural significance of tea in Panama. The growing middle class and rising disposable incomes further contribute to the market's growth. As these trends continue, the RTD Tea market in Panama is expected to expand 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.