Ready-to-Drink (RTD) Tea - South Africa

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

Customer preferences: South African consumers are increasingly looking for convenient and healthy beverage options, which has contributed to the rise in popularity of RTD tea. Many consumers are seeking alternatives to carbonated soft drinks and sugary beverages, and RTD tea provides a refreshing and lower-calorie option. Additionally, the growing health consciousness among consumers has led to an increased demand for natural and organic RTD tea products.

Trends in the market: One of the key trends in the RTD tea market in South Africa is the introduction of innovative flavors and varieties. Manufacturers are constantly launching new and unique flavors to cater to the diverse preferences of consumers. This has not only expanded the product range but also attracted new consumers who are looking for exciting and novel taste experiences. Another trend in the market is the increasing availability of RTD tea in various packaging formats. While traditional bottled RTD tea remains popular, there is a growing demand for smaller and more portable packaging options, such as cans and pouches. This allows consumers to enjoy their favorite RTD tea on-the-go, further driving the market growth.

Local special circumstances: South Africa has a strong tea culture, with a significant portion of the population regularly consuming tea. This cultural preference for tea has provided a solid foundation for the growth of the RTD tea market. Additionally, the country's warm climate makes RTD tea a refreshing and popular choice among consumers, especially during the summer months.

Underlying macroeconomic factors: The growing middle class in South Africa has contributed to the increased purchasing power of consumers, allowing them to spend more on premium and healthier beverage options like RTD tea. Furthermore, the urbanization and changing lifestyles in the country have led to a rise in the demand for convenient and ready-to-consume products, which has positively impacted the RTD tea market. In conclusion, the Ready-to-Drink (RTD) Tea market in South Africa is growing due to the increasing customer preference for convenient and healthy beverage options. The introduction of innovative flavors and packaging formats, along with the country's tea culture and favorable macroeconomic factors, have further fueled the market growth.

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.