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

The Ready-to-Drink (RTD) Coffee & Tea market in Ecuador has been experiencing significant growth in recent years. Customer preferences for convenient and on-the-go beverages, combined with local special circumstances and underlying macroeconomic factors, have contributed to the development of this market.

Customer preferences: In Ecuador, there has been a shift in customer preferences towards ready-to-drink beverages, including coffee and tea. Consumers are increasingly looking for convenient and portable options that can be consumed on-the-go. This trend is driven by busy lifestyles and the need for quick and easy refreshment options. Additionally, there is a growing demand for healthier beverage choices, which has led to an increase in the consumption of RTD coffee and tea products that are low in sugar and made with natural ingredients.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Ecuador is the introduction of innovative flavors and varieties. Manufacturers are constantly launching new products to cater to the evolving tastes and preferences of consumers. This includes unique coffee blends, such as those infused with local ingredients like cacao or exotic fruits. Similarly, there is a wide range of tea flavors available, including herbal and fruit-infused options. This diversity of flavors has attracted a broader consumer base and contributed to the growth of the market. Another trend in the market is the increasing availability of RTD coffee and tea products in various distribution channels. While traditional retail outlets like supermarkets and convenience stores remain popular, there has been a rise in e-commerce platforms and specialty coffee shops offering a wider selection of RTD beverages. This expansion of distribution channels has made it easier for consumers to access their favorite RTD coffee and tea products, further driving market growth.

Local special circumstances: Ecuador is known for its high-quality coffee and tea production. The country has a favorable climate and rich volcanic soil, which contribute to the cultivation of premium coffee beans and tea leaves. This local advantage has led to the availability of high-quality ingredients for RTD coffee and tea products, making them more appealing to consumers. Additionally, the cultural significance of coffee and tea in Ecuadorian society has created a strong demand for these beverages, both in their traditional forms and as RTD options.

Underlying macroeconomic factors: Ecuador's improving economy and rising disposable incomes have played a significant role in the development of the RTD Coffee & Tea market. As consumers have more purchasing power, they are able to afford premium and higher-priced RTD beverages. This has encouraged manufacturers to invest in the production of high-quality products to meet the growing demand. Additionally, the increasing urbanization and modernization of Ecuadorian cities have led to a shift in consumer lifestyles, with more people seeking convenient and on-the-go options for their daily beverage consumption. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Ecuador is developing due to customer preferences for convenient and on-the-go beverages, the introduction of innovative flavors and varieties, the increasing availability of RTD products in various distribution channels, the local advantage of high-quality coffee and tea production, and the underlying macroeconomic factors of an improving economy and rising disposable incomes.

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.