Ready-to-Drink (RTD) Tea - Sri Lanka

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

Customer preferences: Sri Lankan consumers have shown a growing preference for convenient and healthy beverage options, which has contributed to the rise of the RTD Tea market. Ready-to-drink teas offer a convenient and on-the-go alternative to traditional hot tea, which is a popular beverage in Sri Lanka. Additionally, RTD teas are often marketed as healthier alternatives to carbonated soft drinks, appealing to health-conscious consumers who are looking for beverages with natural ingredients and lower sugar content.

Trends in the market: One of the key trends in the RTD Tea market in Sri Lanka is the introduction of innovative flavors and blends. Manufacturers are constantly launching new products with unique flavor combinations, such as fruit-infused teas, herbal blends, and exotic tea varieties. This trend caters to the evolving taste preferences of consumers and provides them with a wider range of options to choose from. Another trend in the market is the increasing availability of RTD teas in different packaging formats. While traditional glass bottles are still popular, manufacturers are also introducing smaller and more portable packaging options, such as cans and tetra packs. This allows consumers to easily carry and consume RTD teas wherever they go, further enhancing the convenience factor.

Local special circumstances: Sri Lanka is known for its tea production, and this plays a significant role in the development of the RTD Tea market. The country has a long history of tea cultivation and is renowned for its high-quality Ceylon tea. This reputation has helped in the promotion and marketing of RTD teas, as consumers associate them with the rich tea heritage of Sri Lanka. In addition, Sri Lanka has a warm climate throughout the year, making cold beverages like RTD teas particularly appealing. The refreshing and cooling properties of these drinks make them a popular choice among consumers, especially during the hot summer months.

Underlying macroeconomic factors: The growing middle-class population in Sri Lanka has contributed to the increasing demand for RTD teas. As more people have disposable income, they are willing to spend on premium and convenient beverage options. This has created a favorable market environment for RTD tea manufacturers to expand their product offerings and reach a wider consumer base. Furthermore, the urbanization and modernization of Sri Lanka have also played a role in the growth of the RTD Tea market. As more people move to cities and adopt a fast-paced lifestyle, there is a greater need for quick and convenient beverage options. RTD teas cater to this demand by providing a refreshing and ready-to-consume option for busy urban consumers. In conclusion, the Ready-to-Drink (RTD) Tea market in Sri Lanka is developing due to the growing customer preferences for convenience and health, the introduction of innovative flavors and packaging formats, the country's tea heritage and warm climate, and the underlying macroeconomic factors such as the growing middle-class population and urbanization.

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.