Ready-to-Drink (RTD) Tea - Tanzania

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

Customer preferences: Tanzanian consumers have shown a growing preference for convenience and healthier beverage options, which has contributed to the increasing demand for RTD tea. RTD tea offers a convenient and ready-to-consume alternative to traditional tea, which requires time for brewing and preparation. Additionally, RTD tea is often marketed as a healthier alternative to carbonated soft drinks, as it is perceived to contain natural ingredients and lower sugar content.

Trends in the market: One of the key trends in the RTD tea market in Tanzania is the emergence of local and regional brands. These brands are focusing on catering to the specific tastes and preferences of Tanzanian consumers, offering unique flavors and blends that resonate with the local culture. This trend has gained popularity as consumers seek products that are more relatable and authentic. Another trend in the market is the increasing availability of RTD tea in various distribution channels. While traditional retail channels such as supermarkets and convenience stores remain important, there has been a rise in the availability of RTD tea in online platforms and food delivery services. This trend is driven by the growing e-commerce sector in Tanzania and the increasing adoption of online shopping among consumers.

Local special circumstances: Tanzania is known for its tea production, with the country being one of the largest tea producers in Africa. This local advantage provides a steady supply of tea leaves for the production of RTD tea. Additionally, the cultural significance of tea in Tanzania, where it is often consumed during social gatherings and ceremonies, further contributes to the demand for RTD tea.

Underlying macroeconomic factors: The growing middle class in Tanzania has led to increased disposable income, allowing consumers to spend more on convenience products such as RTD tea. The country's stable economic growth and improving infrastructure have also contributed to the expansion of the RTD tea market. Furthermore, the government's efforts to promote the manufacturing sector and attract foreign investment have created a favorable business environment for RTD tea producers and distributors. In conclusion, the Ready-to-Drink (RTD) Tea market in Tanzania is driven by customer preferences for convenience and healthier beverage options. The market is characterized by the emergence of local and regional brands that cater to the specific tastes of Tanzanian consumers. The increasing availability of RTD tea in various distribution channels, including online platforms, further contributes to market growth. Tanzania's tea production and cultural significance of tea also play a role in driving demand for RTD tea. The country's growing middle class, stable economic growth, and government initiatives to promote the manufacturing sector are underlying macroeconomic factors that support the development of the RTD tea market in Tanzania.

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.