Ready-to-Drink (RTD) Tea - Zambia

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

Customer preferences: Zambian consumers have shown a growing preference for convenience and healthy beverage options, which has contributed to the increasing demand for RTD tea. With busy lifestyles and a rising awareness of the importance of health and wellness, consumers are seeking beverages that are both convenient and nutritious. RTD tea offers a convenient option for on-the-go consumption, while also providing the health benefits associated with tea, such as antioxidants and natural flavors.

Trends in the market: One of the key trends in the RTD tea market in Zambia is the introduction of new flavors and varieties. Manufacturers are constantly innovating to cater to the diverse taste preferences of consumers. From traditional flavors like green tea and black tea to more exotic options like fruit-infused teas and herbal blends, there is a wide variety of choices available in the market. This trend is driven by the desire to offer consumers a unique and enjoyable drinking experience. Another trend in the market is the increasing availability of RTD tea in different packaging formats. While bottles remain the most common packaging option, there is a growing demand for cans and tetra packs. This trend is driven by the convenience and portability offered by these packaging formats, making RTD tea a popular choice for outdoor activities and social gatherings.

Local special circumstances: One of the factors contributing to the growth of the RTD tea market in Zambia is the country's hot climate. With temperatures often reaching high levels, consumers are looking for refreshing and hydrating beverages. RTD tea provides a cooling effect and is a popular choice among consumers to quench their thirst and beat the heat. Furthermore, the increasing urbanization and changing lifestyle patterns in Zambia 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, the demand for convenient and ready-to-consume beverages has increased. RTD tea fits well into this lifestyle, offering a quick and refreshing option for busy individuals.

Underlying macroeconomic factors: Zambia's growing economy and rising disposable incomes have also contributed to the growth of the RTD tea market. As consumers have more purchasing power, they are willing to spend on premium and healthier beverage options. This has created a favorable environment for the growth of the RTD tea market, with both domestic and international brands expanding their presence in the country. In conclusion, the Ready-to-Drink (RTD) Tea market in Zambia is experiencing growth due to customer preferences for convenience and healthy beverage options. The introduction of new flavors and packaging formats, along with the country's hot climate and changing lifestyle patterns, has further fueled this growth. Additionally, Zambia's growing economy and rising disposable incomes have created a favorable environment for the expansion 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.