Ready-to-Drink (RTD) Tea - Bangladesh

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

Customer preferences: Bangladesh is a country with a rich tea culture, and tea is one of the most popular beverages consumed by the population. Traditionally, tea is consumed in the form of hot, brewed tea. However, in recent years, there has been a shift in consumer preferences towards Ready-to-Drink (RTD) Tea. This can be attributed to several factors, including convenience, changing lifestyles, and the desire for new and innovative flavors.

Trends in the market: One of the key trends in the Ready-to-Drink (RTD) Tea market in Bangladesh is the increasing demand for healthier and natural options. Consumers are becoming more health-conscious and are seeking beverages that are low in sugar and artificial additives. As a result, there has been a rise in the availability of RTD teas that are made with natural ingredients and have reduced sugar content. Additionally, there is a growing trend towards functional RTD teas that offer various health benefits, such as improved digestion or enhanced energy levels. Another trend in the market is the introduction of innovative flavors and packaging. Manufacturers are constantly launching new flavors and packaging designs to attract consumers and differentiate their products from competitors. This includes flavors such as fruit-infused teas, herbal blends, and unique combinations that cater to the diverse taste preferences of consumers.

Local special circumstances: Bangladesh has a large population of young consumers who are increasingly driving the demand for RTD tea. This demographic group is more open to trying new and innovative products and is willing to spend on premium offerings. Additionally, the growing urbanization and increasing disposable income levels in the country have contributed to the rise in demand for RTD tea.

Underlying macroeconomic factors: The economic growth in Bangladesh has played a significant role in the development of the RTD tea market. As the country's economy continues to expand, there has been an increase in the purchasing power of consumers, leading to higher spending on beverages such as RTD tea. Furthermore, the growing middle class in Bangladesh has also contributed to the growth of the market, as this segment of the population is more likely to consume RTD tea as a convenient and affordable option. In conclusion, the Ready-to-Drink (RTD) Tea market in Bangladesh is experiencing growth due to changing customer preferences, including a shift towards healthier options and a desire for innovative flavors. The market is also influenced by local special circumstances, such as a large population of young consumers and increasing disposable income levels. The underlying macroeconomic factors, such as economic growth and the expanding middle class, are also contributing to the development 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.