Ready-to-Drink (RTD) Coffee & Tea - Sri Lanka

The Ready-to-Drink (RTD) Coffee & Tea market in Sri Lanka has been witnessing significant growth in recent years.

Customer preferences: The increasing popularity of RTD Coffee & Tea can be attributed to several factors. Firstly, there is a growing demand for convenience among consumers, who are increasingly seeking on-the-go beverage options. RTD Coffee & Tea provides a convenient and ready-to-consume solution for busy individuals, allowing them to enjoy their favorite beverages without the need for preparation. Additionally, the younger generation in Sri Lanka is becoming more health-conscious and is actively seeking healthier alternatives to carbonated soft drinks. RTD Coffee & Tea offers a refreshing and healthier option, as it is often made with natural ingredients and contains less sugar compared to traditional carbonated beverages.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Sri Lanka is the introduction of innovative flavors and ingredients. Manufacturers are constantly experimenting with new flavors and combinations to cater to the diverse taste preferences of consumers. This trend is driven by the increasing demand for unique and exotic flavors, as well as the desire for variety among consumers. Moreover, there is a growing trend towards premiumization in the market, with consumers willing to pay a premium for high-quality and premium RTD Coffee & Tea products. This trend is driven by the increasing disposable income of consumers and their willingness to indulge in premium beverages.

Local special circumstances: Sri Lanka has a strong tea culture, with tea being one of the most popular beverages in the country. This cultural preference for tea has created a favorable environment for the growth of the RTD Tea market. Sri Lankan consumers are already familiar with tea and have a strong affinity towards it, making them more likely to try RTD Tea products. Additionally, Sri Lanka is known for its high-quality tea production, which further enhances the appeal of RTD Tea products in the market.

Underlying macroeconomic factors: The growing middle class and increasing disposable income in Sri Lanka are key macroeconomic factors driving the growth of the RTD Coffee & Tea market. As consumers have more disposable income, they are able to spend more on premium and convenience products, such as RTD Coffee & Tea. Additionally, the urbanization and modernization of Sri Lanka have led to changing lifestyles and consumption patterns, with consumers increasingly seeking convenient and on-the-go options. These factors have created a favorable market environment for the growth of the RTD Coffee & Tea market in Sri Lanka. In conclusion, the RTD Coffee & Tea market in Sri Lanka is experiencing significant growth due to the increasing demand for convenience, health-consciousness among consumers, and the introduction of innovative flavors. The cultural preference for tea and the country's reputation for high-quality tea production further contribute to the growth of the RTD Tea market. The growing middle class, increasing disposable income, and changing consumption patterns in Sri Lanka are key macroeconomic factors driving the growth 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.