Ready-to-Drink (RTD) Coffee - Bangladesh

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

Customer preferences: Bangladesh is a country with a rich tea-drinking culture, and traditionally, coffee has not been as popular among the local population. However, in recent years, there has been a shift in consumer preferences, with a growing interest in coffee, especially among the younger generation. This can be attributed to the influence of Western culture and the increasing exposure to international coffee brands through social media and travel.

Trends in the market: One of the key trends in the RTD Coffee market in Bangladesh is the increasing demand for convenience. Ready-to-Drink Coffee provides a quick and easy solution for consumers who are always on the go and do not have the time to prepare coffee at home or visit a coffee shop. This trend is particularly popular among urban dwellers and office workers who are looking for a convenient and refreshing beverage option during their busy days. Another trend in the market is the growing preference for flavored RTD Coffee. Consumers in Bangladesh are increasingly seeking variety and unique flavors in their beverages, and coffee companies have responded by introducing a wide range of flavored RTD Coffee options. These flavors range from traditional ones like vanilla and caramel to more exotic flavors like hazelnut and mocha. This trend reflects the evolving taste preferences of the local population and their willingness to explore new flavors.

Local special circumstances: Bangladesh is a densely populated country with a large young population. This demographic factor plays a significant role in the growth of the RTD Coffee market. The younger generation, in particular, is more open to trying new products and experimenting with different flavors. Additionally, the increasing number of cafes and coffee shops in urban areas has also contributed to the growing popularity of coffee among the local population.

Underlying macroeconomic factors: The growing middle class and increasing disposable income in Bangladesh have also played a crucial role in the development of the RTD Coffee market. As more people have the financial means to afford premium and convenience products, the demand for RTD Coffee has increased. Additionally, the rapid urbanization and changing lifestyle patterns have created a demand for on-the-go beverages, further fueling the growth of the market. In conclusion, the Ready-to-Drink Coffee market in Bangladesh is experiencing significant growth due to changing customer preferences, the increasing demand for convenience, and the influence of Western culture. The growing middle class and increasing disposable income in the country, along with the rapid urbanization, have also contributed to the development of the market. As the market continues to evolve, it is likely that we will see further innovation and expansion in the RTD Coffee segment in Bangladesh.

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.