Ready-to-Drink (RTD) Tea - Europe

The Ready-to-Drink (RTD) Tea market in Europe has been experiencing significant growth in recent years. Customer preferences for healthier beverage options, convenience, and unique flavors have been driving this trend. Additionally, local special circumstances and underlying macroeconomic factors have also played a role in the development of the market.

Customer preferences: Consumers in Europe have increasingly been seeking healthier beverage options, and RTD tea has emerged as a popular choice. With its natural ingredients and lower sugar content compared to carbonated soft drinks, RTD tea appeals to health-conscious consumers. Furthermore, the convenience factor of RTD tea has also contributed to its popularity. Busy lifestyles and on-the-go consumption habits have made RTD tea an attractive option for consumers looking for a quick and refreshing drink.

Trends in the market: One of the key trends in the RTD tea market in Europe is the growing demand for unique flavors and innovative product offerings. Consumers are looking for new and exciting taste experiences, and manufacturers have responded by introducing a wide range of flavors, including fruit-infused, herbal, and exotic blends. This trend has been particularly prominent in countries like the United Kingdom, Germany, and France, where consumers are known for their adventurous palate. Another trend in the market is the increasing popularity of premium and organic RTD tea products. European consumers are willing to pay a premium for high-quality and ethically sourced products. This has led to the emergence of niche brands that focus on organic ingredients, sustainable packaging, and fair trade practices. The demand for premium and organic RTD tea is driven by consumers' desire for healthier and more environmentally friendly options.

Local special circumstances: In countries like the United Kingdom, the growing popularity of afternoon tea culture has contributed to the demand for RTD tea. Afternoon tea has become a trendy social activity, and many consumers are looking for convenient and portable options to enjoy this tradition. RTD tea provides a convenient solution for those who want to experience the elegance of afternoon tea on the go. In Eastern European countries like Poland and Russia, traditional tea drinking culture has influenced the demand for RTD tea. Tea has long been a popular beverage in these countries, and RTD tea offers a modern and convenient alternative to traditional tea preparation. The familiarity with tea as a beverage has made it easier for RTD tea to gain acceptance in these markets.

Underlying macroeconomic factors: The growing middle-class population in Europe has played a significant role in the development of the RTD tea market. As disposable incomes rise, consumers are willing to spend more on premium and healthier beverage options. This has created a favorable environment for the growth of the RTD tea market. Furthermore, the increasing urbanization and changing demographics in Europe have also contributed to the growth of the market. Urban dwellers, especially younger consumers, are more likely to adopt new trends and embrace convenience-oriented products like RTD tea. The shift towards urban living and changing demographics have created a large consumer base for RTD tea in Europe. In conclusion, the Ready-to-Drink (RTD) Tea market in Europe is developing due to customer preferences for healthier beverage options, convenience, and unique flavors. The growing demand for premium and organic products, as well as the influence of local special circumstances and underlying macroeconomic factors, have also contributed to 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.