Ready-to-Drink (RTD) Tea - Singapore

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

Customer preferences: Singaporeans have shown a growing preference for healthier beverage options, and RTD tea fits this demand perfectly. With its natural ingredients and lower sugar content compared to carbonated drinks, RTD tea appeals to health-conscious consumers. Additionally, the convenience of ready-to-drink packaging aligns with the fast-paced lifestyle of Singaporeans, who often seek quick and easy beverage options.

Trends in the market: One of the key trends in the RTD tea market in Singapore is the increasing popularity of green tea. Green tea is known for its health benefits and has gained a strong following among health-conscious consumers. As a result, many companies have introduced green tea variants in their RTD tea product lines to cater to this growing demand. Another trend in the market is the emergence of innovative flavors. Companies are constantly introducing new and unique flavors to attract consumers and differentiate themselves from competitors. This includes flavors such as fruit-infused teas, floral teas, and herbal blends. The variety of flavors available in the market allows consumers to experiment and find their preferred taste profiles.

Local special circumstances: Singapore's multicultural society plays a significant role in shaping the RTD tea market. The diverse population brings a wide range of tastes and preferences, leading to a demand for a variety of tea flavors. Companies have recognized this and are catering to different cultural tastes by offering traditional tea flavors like jasmine tea, oolong tea, and herbal teas. Another local special circumstance is the hot climate in Singapore. With the year-round warm weather, there is a high demand for refreshing beverages. RTD tea, especially when served chilled or with ice, provides a refreshing and hydrating option for consumers.

Underlying macroeconomic factors: Singapore's strong economy and high disposable income levels contribute to the growth of the RTD tea market. Consumers are willing to spend more on premium and healthier beverage options, including RTD tea. The rising middle class in Singapore also plays a role in driving the market, as more people can afford to purchase these products on a regular basis. In conclusion, the Ready-to-Drink (RTD) Tea market in Singapore is experiencing growth due to customer preferences for healthier options, the popularity of green tea, the emergence of innovative flavors, the multicultural society, the hot climate, and the underlying macroeconomic factors such as a strong economy and high disposable income levels.

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.