Ready-to-Drink (RTD) Tea - Canada

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

Customer preferences: One of the main reasons for the growth of the RTD Tea market in Canada is the increasing consumer demand for healthier beverage options. As consumers become more health-conscious, they are looking for alternatives to sugary carbonated drinks. RTD teas are seen as a healthier option, as they are often made with natural ingredients and contain less sugar than traditional soft drinks. Additionally, RTD teas are often marketed as being rich in antioxidants and other beneficial compounds, further appealing to health-conscious consumers.

Trends in the market: Another trend driving the growth of the RTD Tea market in Canada is the increasing popularity of flavored and functional teas. Consumers are not only looking for healthier options, but they also want variety and unique flavors. This has led to the introduction of a wide range of flavored RTD teas, including fruit-infused teas, herbal blends, and even exotic flavors from around the world. Additionally, functional teas that claim to offer specific health benefits, such as improved digestion or stress relief, have also gained popularity among consumers.

Local special circumstances: Canada's diverse population and multicultural society have also contributed to the growth of the RTD Tea market. With a large immigrant population, there is a demand for teas from different cultures, such as green tea from East Asia or chai tea from South Asia. This has led to the introduction of a variety of international tea brands in the Canadian market, catering to the preferences of different ethnic groups.

Underlying macroeconomic factors: The growing health and wellness trend, along with the increasing diversity of the Canadian population, are key macroeconomic factors driving the growth of the RTD Tea market in Canada. Additionally, the convenience factor of RTD teas, which can be consumed on-the-go, has also contributed to their popularity. As consumers lead increasingly busy lifestyles, they are looking for convenient and portable beverage options, making RTD teas a convenient choice. In conclusion, the Ready-to-Drink (RTD) Tea market in Canada is experiencing growth due to increasing consumer demand for healthier beverage options, the popularity of flavored and functional teas, the multicultural nature of the Canadian population, and the convenience factor of RTD teas. These trends, along with the underlying macroeconomic factors, are driving the development of the market in Canada.

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.