Ready-to-Drink (RTD) Coffee & Tea - Colombia

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

Customer preferences: Colombian consumers have shown a strong preference for convenient and on-the-go beverage options, which has contributed to the rising popularity of RTD coffee and tea. The busy lifestyles of urban consumers, coupled with the increasing demand for products that provide quick energy boosts, have driven the demand for ready-to-drink beverages in the country. Additionally, there is a growing health consciousness among consumers, leading to a shift towards healthier alternatives like RTD green tea and low-sugar coffee options.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Colombia is the increasing availability and variety of products. Domestic and international beverage companies have recognized the potential of the market and have introduced a wide range of RTD coffee and tea options to cater to different consumer preferences. This has resulted in a highly competitive market, with companies constantly innovating and launching new flavors, packaging formats, and functional ingredients to attract consumers. Another trend in the market is the growing popularity of premium and specialty RTD coffee and tea products. Colombian consumers are willing to pay a premium for high-quality beverages that offer unique flavors and experiences. This has led to the emergence of artisanal and craft RTD coffee and tea brands that focus on sourcing high-quality ingredients and using traditional brewing methods. These premium products cater to the increasing demand for indulgent and sophisticated beverage options.

Local special circumstances: Colombia has a strong coffee culture, and this cultural preference for coffee has influenced the development of the RTD Coffee & Tea market in the country. While coffee remains the dominant category, there is also a growing interest in tea, particularly herbal and green tea variants. This blend of coffee and tea culture has created a unique market where both categories coexist and compete for consumer attention. Additionally, Colombia's geographic location and climate make it an ideal country for the production of coffee and tea. The country has a long history of coffee cultivation, and its high-altitude regions produce some of the finest coffee beans in the world. This local advantage has contributed to the availability of high-quality coffee and tea for RTD beverage production, further fueling the growth of the market.

Underlying macroeconomic factors: Colombia's improving economy and rising disposable incomes have played a crucial role in the development of the RTD Coffee & Tea market. As consumers have more purchasing power, they are able to afford premium and specialty beverages, driving the demand for higher-priced RTD coffee and tea products. Additionally, the growth of urbanization and the expansion of modern retail channels have made these beverages more accessible to a wider consumer base. Furthermore, the increasing health and wellness trend globally has influenced the RTD Coffee & Tea market in Colombia. Consumers are seeking healthier alternatives to sugary carbonated drinks, and RTD coffee and tea provide a convenient and nutritious option. The presence of antioxidants in tea and the potential health benefits of coffee have also contributed to the growing popularity of these beverages among health-conscious consumers. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Colombia is experiencing growth and development driven by customer preferences for convenience, health consciousness, and premium offerings. The availability of high-quality coffee and tea, Colombia's coffee culture, and the country's improving economy and rising disposable incomes have also contributed to the market's expansion.

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.