Ready-to-Drink (RTD) Tea - India

The Ready-to-Drink (RTD) Tea market in India has witnessed significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to the development of this market.

Customer preferences: In India, there has been a growing demand for healthier beverage options, which has led to an increased interest in RTD tea. Consumers are becoming more health-conscious and are seeking beverages that offer both refreshment and nutritional benefits. RTD tea provides a convenient and ready-to-consume option for those looking for a healthier alternative to carbonated drinks. Additionally, the popularity of traditional Indian tea culture has also influenced customer preferences, as many consumers are drawn to the familiar taste and aroma of tea.

Trends in the market: One of the key trends in the RTD tea market in India is the introduction of innovative flavors and blends. Manufacturers are constantly experimenting with new ingredients and flavors to cater to the diverse taste preferences of consumers. This trend has helped to expand the market and attract a wider consumer base. Additionally, there has been a rise in the availability of organic and natural RTD tea options, as consumers are increasingly seeking products that are free from artificial additives and preservatives.

Local special circumstances: India has a rich tea heritage, and this cultural significance has played a role in the development of the RTD tea market. The country is known for its tea plantations and production, and this has created a favorable environment for the growth of the RTD tea industry. Additionally, the hot climate in many parts of India has also contributed to the popularity of RTD tea as a refreshing and hydrating beverage option.

Underlying macroeconomic factors: India's growing middle class and rising disposable incomes have played a significant role in the development of the RTD tea market. As more consumers have the financial means to purchase convenience products, the demand for RTD tea has increased. Furthermore, the urbanization and changing lifestyles in India have also contributed to the growth of the market, as consumers are seeking convenient and on-the-go beverage options. In conclusion, the Ready-to-Drink (RTD) Tea market in India has experienced significant growth due to customer preferences for healthier beverage options, the introduction of innovative flavors, the cultural significance of tea, and underlying macroeconomic factors such as rising disposable incomes and changing lifestyles. This market is expected to continue to expand in the coming years as more consumers embrace the convenience and health benefits of RTD tea.

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.