Ready-to-Drink (RTD) Coffee & Tea - Saudi Arabia

The Ready-to-Drink (RTD) Coffee & Tea market in Saudi Arabia has been experiencing significant growth in recent years.

Customer preferences: Saudi consumers have shown a growing preference for convenient and on-the-go beverage options, which has contributed to the increasing popularity of RTD coffee and tea in the country. The busy lifestyles of many Saudi residents, coupled with the desire for a quick and refreshing pick-me-up, have driven the demand for ready-to-drink beverages. Additionally, the younger generation in Saudi Arabia has embraced the Western coffee culture, leading to a surge in the consumption of RTD coffee products.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Saudi Arabia is the introduction of innovative flavors and formulations. Market players are constantly launching new and exciting flavors to cater to the diverse taste preferences of consumers. This trend has not only attracted existing coffee and tea drinkers but has also expanded the consumer base by appealing to those who may not have previously been regular consumers of these beverages. Another trend in the market is the increasing popularity of premium and specialty RTD coffee and tea products. Saudi consumers are willing to pay a premium for high-quality and unique beverages, leading to the emergence of niche brands offering artisanal and gourmet options. This trend reflects the growing sophistication of the Saudi consumer market and the desire for more premium and indulgent experiences.

Local special circumstances: Saudi Arabia has a unique cultural and social landscape that influences the RTD Coffee & Tea market. The country has a predominantly Muslim population, and Islamic dietary laws prohibit the consumption of alcohol. As a result, the demand for non-alcoholic beverages, including RTD coffee and tea, is high. Additionally, the hot climate in Saudi Arabia makes cold beverages, such as RTD coffee and tea, particularly appealing to consumers.

Underlying macroeconomic factors: The growing economy of Saudi Arabia has played a significant role in the development of the RTD Coffee & Tea market. The country has experienced rapid urbanization and an increase in disposable income, which has led to a rise in consumer spending on convenience products like RTD beverages. Furthermore, the government's efforts to diversify the economy and promote tourism have attracted international coffee and tea brands, leading to increased competition and product innovation in the market. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Saudi Arabia has been driven by customer preferences for convenient and on-the-go beverages, as well as the introduction of innovative flavors and premium products. The unique cultural and social landscape of Saudi Arabia, along with the country's growing economy, have also contributed to the development of the 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.