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

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

Customer preferences: One of the key reasons for the growth of the RTD Tea market in Southern Africa is the increasing health consciousness among consumers. As people become more aware of the health benefits of tea, they are seeking convenient and ready-to-drink options. RTD teas are seen as a healthier alternative to carbonated soft drinks, which are often high in sugar and artificial ingredients. Additionally, the natural antioxidants and other compounds found in tea are believed to have various health benefits, further driving the demand for RTD teas.

Trends in the market: One of the major trends in the RTD Tea market in Southern Africa is the growing popularity of herbal and fruit-infused teas. Consumers are increasingly looking for unique and exotic flavors, and herbal and fruit-infused teas provide a refreshing and flavorful experience. This trend is also driven by the desire for natural and organic products, as many herbal and fruit-infused teas are made with natural ingredients and do not contain artificial additives. Another trend in the market is the rise of premium and specialty RTD teas. As consumers become more discerning and sophisticated in their tastes, they are willing to pay a premium for high-quality and unique tea products. This has led to the introduction of premium RTD tea brands that offer a wide range of flavors and blends, catering to the diverse preferences of consumers.

Local special circumstances: Southern Africa has a rich tea culture, with countries like South Africa and Zimbabwe being known for their high-quality tea production. This local tea culture has contributed to the growth of the RTD Tea market in the region, as consumers are already familiar with and have a preference for tea-based beverages. Additionally, the availability of locally sourced tea leaves has allowed for the production of authentic and flavorful RTD teas.

Underlying macroeconomic factors: The growing middle class in Southern Africa has played a significant role in the growth of the RTD Tea market. As disposable incomes increase, consumers are willing to spend more on premium and healthier beverage options. Additionally, urbanization and changing lifestyles have also contributed to the demand for convenient and on-the-go beverage options, further driving the growth of the RTD Tea market. In conclusion, the Ready-to-Drink (RTD) Tea market in Southern Africa is experiencing growth due to the increasing health consciousness among consumers, the popularity of herbal and fruit-infused teas, the rise of premium and specialty RTD teas, the local tea culture, and the growing middle class in the region. These factors have created a favorable market environment for the development of the RTD Tea market in Southern Africa.

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.