Ready-to-Drink (RTD) Tea - Bhutan

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

Customer preferences: Bhutanese consumers have shown a growing preference for convenience and healthy beverage options, which has contributed to the rise in demand for RTD tea. With busy lifestyles and increasing health consciousness, consumers are seeking ready-to-consume beverages that are both refreshing and beneficial for their well-being. RTD tea offers a convenient and healthier alternative to carbonated soft drinks, which have been associated with negative health effects.

Trends in the market: One of the key trends in the RTD tea market in Bhutan is the increasing popularity of herbal and green tea variants. Bhutan is known for its rich biodiversity and traditional use of herbal remedies, and consumers are embracing the natural and therapeutic qualities of herbal and green teas. Manufacturers have responded to this trend by introducing a wide range of herbal and green tea flavors, catering to the diverse preferences of Bhutanese consumers. Another trend in the market is the emergence of locally produced RTD tea brands. Bhutan has a strong agricultural sector, and local entrepreneurs have capitalized on this by sourcing tea leaves from local tea gardens and creating their own RTD tea brands. These local brands often emphasize the use of organic and sustainably sourced ingredients, appealing to consumers who prioritize supporting local businesses and environmentally friendly practices.

Local special circumstances: Bhutan's unique cultural and environmental factors have also influenced the development of the RTD tea market. The country is known for its commitment to Gross National Happiness, a holistic development philosophy that prioritizes the well-being of its citizens. This emphasis on well-being and sustainability has resonated with consumers, who are increasingly seeking products that align with these values. RTD tea, with its natural ingredients and health benefits, fits well within this framework. Additionally, Bhutan's pristine environment and clean air have made it an ideal location for tea cultivation. The country's high-altitude tea gardens produce high-quality tea leaves that are sought after both domestically and internationally. This has created a sense of pride among Bhutanese consumers, who appreciate the local origin of their RTD tea and the positive impact it has on the country's economy.

Underlying macroeconomic factors: The growth of the RTD tea market in Bhutan is also influenced by broader macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending power. This has allowed consumers to prioritize their health and well-being, including their choice of beverages. Furthermore, Bhutan's strategic location between India and China has facilitated trade and investment in the RTD tea sector. The country benefits from the expertise and resources of its neighboring tea-producing giants, allowing for the import of high-quality tea leaves and the adoption of advanced processing techniques. This has contributed to the overall quality and variety of RTD tea products available in the market. In conclusion, the Ready-to-Drink (RTD) Tea market in Bhutan is growing due to shifting consumer preferences towards convenience and healthier beverage options. The market is characterized by the increasing popularity of herbal and green tea variants, the emergence of locally produced brands, and the influence of Bhutan's unique cultural and environmental factors. The growth is also supported by underlying macroeconomic factors such as economic growth and trade opportunities.

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.