Ready-to-Drink (RTD) Tea - Japan

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

Customer preferences: Japanese consumers have shown a strong preference for healthy and natural beverages, which has contributed to the increasing popularity of RTD tea. With growing concerns about health and wellness, consumers are seeking out beverages that offer functional benefits and are perceived as better alternatives to sugary carbonated drinks. RTD tea, with its natural ingredients and various flavors, has emerged as a popular choice among health-conscious consumers in Japan.

Trends in the market: One of the key trends in the RTD tea market in Japan is the diversification of flavors and product offerings. Manufacturers are constantly introducing new and innovative flavors to cater to the evolving tastes of consumers. From traditional green tea and black tea to more unique flavors like matcha, jasmine, and fruit-infused teas, there is a wide variety of options available in the market. This trend is driven by the desire to attract new consumers and retain existing ones by offering a diverse range of choices. Another trend in the market is the increasing demand for premium and high-quality RTD tea products. Japanese consumers are willing to pay a premium for products that are perceived to be of superior quality. This has led to the emergence of premium RTD tea brands that focus on using high-quality tea leaves and natural ingredients. These brands often highlight the origin and production process of their teas, appealing to consumers who value authenticity and craftsmanship.

Local special circumstances: Japan has a strong tea culture, with a long history of tea consumption. This cultural background has played a significant role in shaping the RTD tea market in the country. The familiarity and appreciation for tea among Japanese consumers have made them more receptive to RTD tea products. Additionally, the availability of high-quality tea leaves locally has allowed manufacturers to produce RTD tea products that meet the taste preferences of Japanese consumers.

Underlying macroeconomic factors: The growing health and wellness trend, coupled with an aging population, has contributed to the growth of the RTD tea market in Japan. As consumers become more health-conscious, they are actively seeking out healthier beverage options, such as RTD tea. The aging population also plays a role, as older consumers are more likely to prioritize their health and opt for beverages that offer functional benefits. Furthermore, the convenience factor has also contributed to the growth of the RTD tea market. RTD tea offers a convenient and portable option for consumers who are always on the go. With busy lifestyles and limited time for preparation, RTD tea provides a quick and easy solution for consumers to enjoy their favorite beverage. In conclusion, the Ready-to-Drink (RTD) Tea market in Japan is experiencing growth due to customer preferences for healthy and natural beverages, the diversification of flavors and product offerings, the demand for premium and high-quality products, the strong tea culture in Japan, and underlying macroeconomic factors such as the health and wellness trend and the aging population.

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.