Ready-to-Drink (RTD) Coffee & Tea - South America

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

Customer preferences: Customers in South America have shown a strong preference for convenient and on-the-go beverage options, which has contributed to the growth of the RTD Coffee & Tea market. The busy lifestyles of consumers in the region, coupled with the increasing popularity of coffee and tea as beverage choices, have created a demand for ready-to-drink options that can be consumed easily and quickly.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in South America is the rising demand for healthier and natural ingredients. Consumers are becoming more health-conscious and are seeking beverages that are free from artificial flavors, preservatives, and sweeteners. As a result, companies in the market are focusing on developing products that use natural ingredients and are low in sugar content. Another trend in the market is the introduction of innovative flavors and blends. South American consumers are known for their adventurous palates and willingness to try new flavors. Companies are capitalizing on this trend by offering unique and exotic flavors in their RTD Coffee & Tea products. This includes flavors inspired by local fruits and herbs, which resonate well with the taste preferences of consumers in the region.

Local special circumstances: South America is known for its strong coffee culture, with countries like Brazil and Colombia being major coffee producers. This has created a favorable environment for the growth of the RTD Coffee & Tea market in the region. Consumers in South America have a deep appreciation for coffee and tea, and are more likely to embrace ready-to-drink options that offer the same quality and taste as traditional brewed beverages. Additionally, the climate in South America, with its hot and humid weather in many parts of the region, has also contributed to the popularity of RTD Coffee & Tea. Cold beverages are particularly appealing to consumers during the hot summer months, and ready-to-drink options provide a convenient and refreshing solution.

Underlying macroeconomic factors: The growing middle class in South America has played a significant role in the development of the RTD Coffee & Tea market. As disposable incomes rise, consumers have more purchasing power and are willing to spend on premium and convenient beverage options. This has created a favorable market environment for companies operating in the RTD Coffee & Tea sector. Furthermore, urbanization and changing lifestyles have also contributed to the growth of the market. As more people move to cities and adopt busier lifestyles, the demand for convenient and on-the-go products increases. RTD Coffee & Tea products cater to this need, providing consumers with a quick and easy way to enjoy their favorite beverages. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in South America is experiencing growth due to customer preferences for convenient and on-the-go options, the rising demand for healthier and natural ingredients, the introduction of innovative flavors and blends, the strong coffee culture in the region, the hot and humid climate, the growing middle class, and urbanization. These factors have created a favorable market environment for companies in the RTD Coffee & Tea sector to thrive and expand their offerings.

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.