Ready-to-Drink (RTD) Tea - Iran

The Ready-to-Drink (RTD) Tea market in Iran is experiencing significant growth and development.

Customer preferences: Iranian consumers have shown a growing preference for healthier beverage options in recent years. As a result, there has been a shift towards ready-to-drink tea, which is perceived as a healthier alternative to carbonated soft drinks. The convenience of RTD tea, which can be consumed on-the-go, also appeals to busy urban consumers who are looking for quick and easy refreshment options.

Trends in the market: One of the key trends in the RTD tea market in Iran is the increasing demand for natural and organic products. Consumers are becoming more conscious about the ingredients used in their beverages and are seeking products that are free from artificial additives and preservatives. This has led to the introduction of a wide range of organic and natural RTD tea options in the market. Another trend in the market is the growing popularity of flavored RTD teas. Manufacturers are introducing innovative flavors such as lemon, peach, and mint to cater to the evolving taste preferences of consumers. These flavored teas offer a refreshing and unique taste experience, which has resonated well with Iranian consumers.

Local special circumstances: Iran has a rich tea-drinking culture, with tea being one of the most popular beverages in the country. However, traditionally, tea has been consumed in the form of hot brewed tea. The emergence of RTD tea as a convenient and refreshing alternative has disrupted this traditional consumption pattern. As a result, there has been a gradual shift towards the consumption of RTD tea, especially among the younger generation.

Underlying macroeconomic factors: The growing middle class in Iran, coupled with rising disposable incomes, has contributed to the increasing demand for RTD tea. As consumers have more purchasing power, they are able to afford premium and higher-priced RTD tea products. This has led to the introduction of a wider range of premium RTD tea options in the market. Additionally, the improving economic conditions in Iran have attracted foreign investments in the RTD tea sector. International brands have entered the market, bringing with them their expertise and resources to cater to the growing demand. This has further fueled the growth of the RTD tea market in Iran. In conclusion, the Ready-to-Drink (RTD) Tea market in Iran is witnessing significant growth and development driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for healthier and convenient beverage options, the introduction of natural and flavored RTD teas, the shift in traditional tea consumption patterns, the growing middle class and rising disposable incomes, and foreign investments in the sector are all contributing to the expansion of the RTD tea market in Iran.

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.