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

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

Customer preferences: Consumers in South America have shown a growing preference for healthier beverage options, which has contributed to the increased demand for RTD tea. RTD tea is often perceived as a healthier alternative to carbonated soft drinks, as it is often made with natural ingredients and contains fewer calories. Additionally, many consumers appreciate the convenience of RTD tea, as it can be enjoyed on-the-go without the need for brewing or steeping.

Trends in the market: One of the key trends in the RTD tea market in South America is the introduction of new flavors and varieties. Manufacturers are constantly innovating and introducing new and unique flavors to cater to the diverse tastes of consumers in the region. This trend has been driven by the increasing demand for variety and novelty among consumers, who are always looking for new and exciting options. Another trend in the market is the growing popularity of functional RTD teas. These are teas that are fortified with additional ingredients such as vitamins, minerals, or antioxidants, which offer additional health benefits. Functional RTD teas are particularly appealing to health-conscious consumers who are looking for beverages that not only taste good but also provide added nutritional value.

Local special circumstances: South America is a region known for its rich tea culture, particularly in countries like Argentina and Uruguay. This cultural affinity for tea has played a significant role in the growth of the RTD tea market in the region. Consumers in South America have a deep appreciation for the taste and aroma of tea, and RTD tea provides a convenient way for them to enjoy their favorite beverage.

Underlying macroeconomic factors: The growth of the RTD tea market in South America can also be attributed to several macroeconomic factors. The region has experienced steady economic growth in recent years, which has led to an increase in disposable income among consumers. This has allowed them to spend more on premium and higher-priced products, including RTD tea. In addition, the changing demographics in South America have also contributed to the growth of the RTD tea market. The region has a young and urbanized population, which is more open to trying new and innovative products. This demographic shift has created a favorable environment for the growth of the RTD tea market, as young consumers are more likely to embrace new trends and experiment with different flavors and varieties. In conclusion, the Ready-to-Drink (RTD) Tea market in South America is experiencing significant growth due to changing consumer preferences, the introduction of new flavors and varieties, the popularity of functional RTD teas, the region's tea culture, and favorable macroeconomic factors. As the market continues to evolve, it is expected that manufacturers will continue to innovate and introduce new products to cater to the diverse tastes and preferences of consumers in the region.

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.