Ready-to-Drink (RTD) Tea - Africa

The Ready-to-Drink (RTD) Tea market in Africa is experiencing significant growth and development.

Customer preferences: African consumers are increasingly seeking healthier beverage options, and ready-to-drink tea fits this trend perfectly. RTD tea is perceived as a healthier alternative to carbonated soft drinks and sugary fruit juices. The natural ingredients and antioxidants found in tea are appealing to health-conscious consumers who are looking for functional beverages that offer both refreshment and potential health benefits. Additionally, the convenience factor of RTD tea appeals to busy urban consumers who are always on the go.

Trends in the market: One of the key trends in the African RTD tea market is the growing popularity of flavored and herbal teas. Consumers are seeking unique and exotic flavors that provide a refreshing twist to traditional tea. This trend is driven by the desire for variety and experimentation among consumers. Additionally, there is a growing demand for organic and natural RTD tea products, as consumers become more conscious of the environmental and health impacts of their choices.

Local special circumstances: Africa is a diverse continent with a rich tea culture in countries such as Kenya, Tanzania, and Malawi. These countries have a long history of tea production and are known for their high-quality teas. This local expertise and heritage give African RTD tea brands a competitive advantage in terms of sourcing and producing high-quality tea-based beverages. Furthermore, the growing middle class in many African countries is driving demand for premium RTD tea products, creating opportunities for local brands to cater to this segment.

Underlying macroeconomic factors: The economic growth and urbanization in Africa are contributing to the development of the RTD tea market. As disposable incomes rise and lifestyles become more fast-paced, consumers are increasingly opting for convenient and ready-to-consume beverage options. The expanding middle class and changing consumer preferences are driving the growth of the RTD tea market in Africa. Additionally, the increasing availability of RTD tea products through modern retail channels, such as supermarkets and convenience stores, is also contributing to market growth. In conclusion, the Ready-to-Drink (RTD) Tea market in Africa is growing due to the rising demand for healthier and convenient beverage options. Customer preferences for natural and functional beverages, as well as unique flavors, are driving the trend towards flavored and herbal RTD teas. Local expertise in tea production and the expanding middle class in Africa are contributing to the development of the market. The underlying macroeconomic factors of economic growth and urbanization are also fueling the growth of the RTD tea market in Africa.

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.