Ready-to-Drink (RTD) Tea - Puerto Rico

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

Customer preferences: Puerto Rican consumers have shown a growing preference for healthier beverage options, which has contributed to the rise in popularity of RTD tea. With an increasing focus on health and wellness, many consumers are seeking out beverages that offer functional benefits, such as antioxidants and natural ingredients. RTD tea fits this trend perfectly, as it is often marketed as a natural and healthy alternative to sugary soft drinks. Additionally, the convenience factor of RTD tea appeals to busy consumers who are looking for on-the-go options.

Trends in the market: One of the key trends in the RTD tea market in Puerto Rico is the growing demand for flavored and specialty teas. While traditional flavors like green tea and black tea remain popular, consumers are increasingly seeking out unique and exotic flavors. This trend can be attributed to the influence of global culinary trends and the desire for new and exciting taste experiences. As a result, companies in the RTD tea market are introducing innovative flavors and blends to cater to this demand. Another trend in the market is the increasing availability of premium and organic RTD tea options. Consumers are willing to pay a premium for products that are perceived as higher quality and more natural. This has led to the introduction of organic and sustainably sourced RTD tea brands in Puerto Rico. These products often come with a higher price tag, but consumers are willing to make the investment in their health and the environment.

Local special circumstances: Puerto Rico's tropical climate and rich tea culture have also played a role in the development of the RTD tea market. The island's warm weather makes iced tea a popular choice among consumers, and RTD tea provides a convenient and refreshing option. Additionally, Puerto Rico has a strong tea heritage, with a long history of tea cultivation and consumption. This cultural background has helped to create a market that is receptive to RTD tea products.

Underlying macroeconomic factors: The growing RTD tea market in Puerto Rico can also be attributed to the country's improving economy and increasing disposable income. As the economy strengthens, consumers have more purchasing power and are willing to spend on premium and healthier beverage options. This has created a favorable environment for the growth of the RTD tea market. In conclusion, the Ready-to-Drink (RTD) Tea market in Puerto Rico is experiencing growth due to customer preferences for healthier beverage options, the introduction of unique flavors and premium products, the island's tropical climate and tea culture, and the improving economy.

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.