Ready-to-Drink (RTD) Coffee & Tea - Sweden

The Ready-to-Drink (RTD) Coffee & Tea market in Sweden has seen significant growth in recent years, driven by changing consumer preferences and a growing demand for convenient and healthy beverages.

Customer preferences: In Sweden, there is a strong emphasis on health and wellness, with consumers increasingly seeking out products that are natural, organic, and low in sugar. This has led to a shift towards healthier beverage options, such as RTD coffee and tea that are made with natural ingredients and have reduced sugar content. Additionally, there is a growing interest in functional beverages that offer additional health benefits, such as those fortified with vitamins or antioxidants.

Trends in the market: One of the key trends in the RTD coffee and tea market in Sweden is the rise of premium and specialty products. Consumers are willing to pay a premium for high-quality, artisanal beverages that offer unique flavors and superior taste. This has led to the emergence of small, local brands that focus on producing small-batch, handcrafted drinks using specialty coffee beans and tea leaves. Another trend in the market is the increasing popularity of cold brew coffee. Cold brew coffee is made by steeping coffee grounds in cold water for an extended period of time, resulting in a smoother and less acidic beverage. This method of preparation has gained traction among Swedish consumers who appreciate the milder flavor profile and lower acidity of cold brew coffee.

Local special circumstances: Sweden has a strong coffee culture, with Swedes being among the highest consumers of coffee per capita in the world. This cultural affinity for coffee has translated into a growing interest in RTD coffee, as consumers seek out convenient options to enjoy their favorite beverage on-the-go. Additionally, the cold climate in Sweden makes hot beverages like coffee and tea particularly appealing, further driving the demand for RTD options.

Underlying macroeconomic factors: The Swedish economy has been performing well in recent years, with steady GDP growth and low unemployment rates. This has contributed to increased consumer spending power and a willingness to invest in premium and higher-priced products, including RTD coffee and tea. Additionally, the strong focus on health and wellness in Sweden has created a favorable environment for the growth of the RTD coffee and tea market, as consumers prioritize products that align with their health-conscious lifestyles. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Sweden is experiencing growth due to changing consumer preferences towards healthier and more convenient beverage options. The rise of premium and specialty products, the popularity of cold brew coffee, and the strong coffee culture in Sweden are all contributing to the development of this market. The underlying macroeconomic factors, such as the strong economy and focus on health and wellness, further support the growth of the RTD coffee and tea market in Sweden.

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.