Ready-to-Drink (RTD) Tea - Saudi Arabia

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

Customer preferences: Saudi consumers have shown a growing preference for healthier beverage options, which has contributed to the rise in demand for RTD tea. With increasing health consciousness and a desire for convenient and refreshing drinks, RTD tea has become a popular choice among consumers. The convenience factor of ready-to-drink beverages allows consumers to enjoy a refreshing and healthy beverage on the go, without the need for preparation or brewing.

Trends in the market: One of the key trends in the RTD tea market in Saudi Arabia is the growing popularity of flavored and herbal teas. Consumers are increasingly looking for unique and exotic flavors, and RTD tea manufacturers are catering to this demand by introducing a wide range of flavors, including fruit-infused and herbal teas. This trend is driven by the desire for variety and new taste experiences among consumers. Another trend in the market is the increasing availability of premium and organic RTD tea options. As consumers become more health-conscious and environmentally aware, there is a growing demand for organic and natural products. RTD tea manufacturers are responding to this trend by offering premium and organic options, which are perceived as healthier and more sustainable choices.

Local special circumstances: Saudi Arabia has a hot climate for most of the year, which makes refreshing beverages like RTD tea particularly appealing to consumers. The convenience and portability of RTD tea make it an ideal choice for consumers to quench their thirst and stay hydrated in the hot weather. Additionally, the cultural preference for tea as a beverage also contributes to the popularity of RTD tea in Saudi Arabia.

Underlying macroeconomic factors: The growing economy and increasing disposable income in Saudi Arabia have also played a role in the development of the RTD tea market. As consumers have more purchasing power, they are willing to spend on premium and healthier beverage options. The rising middle class in the country has also contributed to the growth of the market, as they seek convenient and affordable options for their busy lifestyles. In conclusion, the Ready-to-Drink (RTD) Tea market in Saudi Arabia is experiencing growth due to customer preferences for healthier and convenient beverage options. The market is characterized by the increasing popularity of flavored and herbal teas, as well as the availability of premium and organic options. The hot climate and cultural preference for tea also contribute to the market's development. The growing economy and increasing disposable income in Saudi Arabia further support the growth of the RTD tea 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.