Ready-to-Drink (RTD) Tea - Pakistan

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

Customer preferences: Pakistanis have traditionally been tea drinkers, with a strong preference for hot tea. However, as the country has become more urbanized and modernized, there has been a shift in consumer preferences towards convenience and ready-to-drink beverages. This has led to an increased demand for RTD tea products, which offer a convenient and refreshing alternative to hot tea.

Trends in the market: One of the key trends in the RTD tea market in Pakistan is the growing popularity of flavored and functional teas. Consumers are increasingly looking for innovative and unique flavors, as well as teas that offer health benefits such as antioxidants or stress relief. This has led to the introduction of a wide variety of flavored and functional RTD tea products in the market. Another trend in the market is the increasing availability of RTD tea products in different packaging formats. While bottles remain the most popular packaging option, there has been a rise in the availability of RTD tea in cans and tetra packs. This allows consumers to enjoy RTD tea on-the-go, making it a convenient choice for busy individuals.

Local special circumstances: Pakistan is a country with a hot climate, especially during the summer months. This makes RTD tea a popular choice among consumers as a refreshing and hydrating beverage. The convenience of RTD tea also makes it an attractive option for those who are on-the-go and do not have the time or resources to prepare hot tea.

Underlying macroeconomic factors: The growing middle class in Pakistan has contributed to the growth of the RTD tea market. As disposable incomes rise, consumers have more purchasing power and are willing to spend on convenient and premium products. This has created opportunities for both local and international RTD tea brands to enter the market and cater to the evolving needs and preferences of consumers. Additionally, the increasing urbanization and modernization of Pakistan has led to changes in lifestyle and consumption patterns. With more people living in cities and leading busy lives, there is a higher demand for convenient and ready-to-drink beverages. RTD tea fits well into this trend, offering a refreshing and convenient beverage option for consumers. In conclusion, the Ready-to-Drink (RTD) Tea market in Pakistan is experiencing growth due to changing customer preferences, including a shift towards convenience and a desire for innovative flavors and functional benefits. The local climate and lifestyle factors also contribute to the popularity of RTD tea in the country. With the growing middle class and increasing urbanization, the market is expected to continue to expand 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.