Ready-to-Drink (RTD) Tea - Taiwan

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

Customer preferences: Taiwanese consumers have shown a growing preference for healthier beverage options, which has contributed to the increasing popularity of RTD tea. With rising health consciousness and a desire for convenient and on-the-go options, consumers are gravitating towards beverages that offer both taste and health benefits. RTD tea fits this criteria, as it is often made from natural ingredients and can provide a refreshing and hydrating alternative to sugary soft drinks.

Trends in the market: One of the key trends in the RTD tea market in Taiwan is the introduction of innovative flavors and ingredients. Manufacturers are constantly striving to differentiate their products and attract consumers with unique and exotic flavors. This has led to the emergence of a wide variety of RTD tea options, ranging from traditional flavors like green tea and oolong tea to more adventurous combinations such as fruit-infused teas and herbal blends. Another trend in the market is the increasing demand for premium and high-quality RTD tea products. Taiwanese consumers are willing to pay a premium for teas that are made from premium tea leaves and are produced using traditional brewing methods. This has created opportunities for both domestic and international tea brands to introduce premium RTD tea options that cater to this demand.

Local special circumstances: Taiwan has a rich tea culture and is known for producing high-quality teas. This has created a strong foundation for the RTD tea market in the country, as consumers have a deep appreciation for tea and are familiar with different tea varieties. The local tea culture also influences consumer preferences, with Taiwanese consumers often preferring teas that are less sweet and have a stronger tea flavor.

Underlying macroeconomic factors: The growing economy in Taiwan has contributed to the development of the RTD tea market. As disposable incomes rise, consumers have more purchasing power and are able to spend on premium and higher-priced products. This has created a favorable environment for the growth of the RTD tea market, as consumers are willing to spend more on beverages that offer quality and health benefits. Additionally, the convenience factor of RTD tea has played a role in its popularity. With busy lifestyles and limited time for preparation, consumers are increasingly turning to ready-to-drink options that can be consumed on the go. RTD tea provides a convenient and portable option for consumers who want to enjoy tea without the hassle of brewing it themselves. In conclusion, the RTD tea market in Taiwan is experiencing growth due to changing consumer preferences, including a desire for healthier options and convenience. The introduction of innovative flavors and premium products has also contributed to the market's development. The local tea culture and the growing economy in Taiwan have created a favorable environment for 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.