Ready-to-Drink (RTD) Tea - South Korea

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

Customer preferences: South Korean consumers have shown a growing preference for healthier beverage options, which has contributed to the rising demand for RTD tea. With increasing awareness of the health benefits of tea, consumers are looking for convenient and ready-to-consume options that offer the same benefits as traditional tea. RTD tea provides a convenient solution for busy individuals who want to enjoy the refreshing taste of tea on the go.

Trends in the market: One of the key trends in the RTD tea market in South Korea is the introduction of innovative flavors and formulations. Manufacturers are constantly launching new and unique flavors to cater to the evolving taste preferences of consumers. This includes flavors such as green tea, black tea, fruit-infused tea, and herbal tea. In addition to flavors, companies are also focusing on developing healthier formulations with reduced sugar content and natural ingredients. Another trend in the market is the increasing popularity of functional RTD teas. These teas are fortified with vitamins, minerals, and other beneficial ingredients that offer specific health benefits. For example, there are RTD teas that are marketed for weight loss, detoxification, and immune support. This trend aligns with the growing health-consciousness among consumers and their desire for beverages that provide added nutritional value.

Local special circumstances: South Korea has a strong tea culture, with a long history of tea consumption. Traditional tea ceremonies and the practice of drinking tea for its health benefits have deep roots in Korean society. This cultural background has influenced the demand for RTD tea in the country. Consumers in South Korea appreciate the taste and health benefits of tea, and RTD tea provides a convenient way for them to enjoy these benefits in their busy lifestyles.

Underlying macroeconomic factors: The growing popularity of RTD tea in South Korea can also be attributed to favorable macroeconomic factors. The country has a high urbanization rate and a fast-paced lifestyle, which has led to an increased demand for convenient and on-the-go beverage options. RTD tea fits well with this lifestyle, offering a portable and refreshing beverage that can be consumed anytime, anywhere. Furthermore, South Korea has a strong economy and a rising middle class, which has led to increased disposable income among consumers. This has allowed them to spend more on premium and healthier beverage options, including RTD tea. The growing disposable income has also contributed to the expansion of the RTD tea market in terms of product variety and pricing. In conclusion, the Ready-to-Drink (RTD) Tea market in South Korea is experiencing growth due to changing customer preferences towards healthier beverages, the introduction of innovative flavors and formulations, the cultural background of tea consumption, and favorable macroeconomic factors such as urbanization and rising disposable income.

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.