Ready-to-Drink (RTD) Tea - Indonesia

The Ready-to-Drink (RTD) Tea market in Indonesia has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Indonesian consumers have shown a growing preference for healthier beverage options, leading to an increased demand for RTD tea. This can be attributed to a rising awareness of the health benefits of tea, such as its antioxidant properties and potential to aid digestion. Additionally, the convenience factor of RTD tea appeals to busy urban consumers who are looking for on-the-go options.

Trends in the market: One of the key trends in the RTD tea market in Indonesia is the introduction of innovative flavors and blends. Manufacturers are constantly launching new and unique flavors to cater to the diverse taste preferences of Indonesian consumers. This includes flavors inspired by local ingredients and traditional Indonesian beverages, which resonate well with the local population. Another trend is the use of natural and organic ingredients in RTD tea products, as consumers are increasingly seeking products that are perceived as healthier and more sustainable.

Local special circumstances: Indonesia's large and growing population, combined with its rising middle class, presents a significant market opportunity for RTD tea manufacturers. The country's young and urban population is increasingly adopting a modern and fast-paced lifestyle, which has fueled the demand for convenient and ready-to-consume beverages like RTD tea. Additionally, the tropical climate of Indonesia makes it an ideal market for refreshing and thirst-quenching beverages like tea.

Underlying macroeconomic factors: Indonesia's positive economic growth and increasing disposable income are key macroeconomic factors driving the growth of the RTD tea market. As the country's middle class expands, more consumers have the purchasing power to afford premium and higher-priced RTD tea products. Furthermore, the growing urbanization and modernization of Indonesia's cities have led to changing lifestyles and consumption patterns, with consumers increasingly opting for convenient and on-the-go beverage options like RTD tea. In conclusion, the Ready-to-Drink (RTD) Tea market in Indonesia is experiencing significant growth due to changing customer preferences towards healthier beverage options, the introduction of innovative flavors, the country's large and growing population, and positive macroeconomic factors such as economic growth and increasing disposable income. The market is expected to continue expanding as manufacturers cater to the evolving needs and preferences of Indonesian consumers.

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.