Ready-to-Drink (RTD) Tea - Malawi

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

Customer preferences: Customers in Malawi are increasingly seeking convenient and healthy beverage options, which has led to a growing demand for RTD tea. RTD tea offers a ready-to-consume solution for consumers who are looking for a refreshing and nutritious alternative to carbonated soft drinks. Additionally, the popularity of RTD tea is also driven by its availability in various flavors and formulations, catering to different taste preferences.

Trends in the market: One of the key trends in the RTD tea market in Malawi is the increasing focus on natural and organic ingredients. Consumers are becoming more conscious about the ingredients used in their beverages and are opting for products that are free from artificial additives and preservatives. As a result, manufacturers are introducing RTD tea products that are made from natural tea leaves and sweetened with natural sweeteners like stevia or honey. Another trend in the market is the rising popularity of functional RTD teas. These products are infused with additional ingredients such as herbs, vitamins, and minerals, which offer health benefits beyond traditional tea. Functional RTD teas are gaining traction among health-conscious consumers who are looking for beverages that can support their overall well-being.

Local special circumstances: Malawi has a strong tea culture, with tea being one of the most consumed beverages in the country. This cultural preference for tea has created a favorable environment for the growth of the RTD tea market. Additionally, the country's favorable climate and fertile soil make it an ideal location for tea cultivation, ensuring a steady supply of high-quality tea leaves for the production of RTD tea.

Underlying macroeconomic factors: The growing middle-class population and increasing disposable incomes in Malawi have contributed to the growth of the RTD tea market. As consumers have more purchasing power, they are willing to spend on premium and convenience products like RTD tea. Furthermore, urbanization and changing lifestyles have led to a shift in consumer preferences towards on-the-go beverage options, further driving the demand for RTD tea. In conclusion, the Ready-to-Drink (RTD) Tea market in Malawi is experiencing growth due to changing customer preferences towards convenient and healthy beverages, local special circumstances such as the country's strong tea culture, and underlying macroeconomic factors such as a growing middle-class population and increasing disposable incomes. The market is witnessing trends such as the focus on natural and organic ingredients and the popularity of functional RTD teas. These factors are expected to continue driving the growth of the RTD tea market in Malawi in the coming years.

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.