Ready-to-Drink (RTD) Tea - China

The Ready-to-Drink (RTD) Tea market in China has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development. Customer preferences in China have shifted towards healthier beverage options, leading to an increased demand for RTD tea. Consumers are becoming more health-conscious and are actively seeking out beverages that offer functional benefits. RTD tea, with its natural ingredients and perceived health benefits, has emerged as a popular choice among Chinese consumers. Additionally, the convenience of RTD tea appeals to busy urban dwellers who are looking for on-the-go refreshments. Trends in the market have also played a role in the growth of the RTD tea market in China. The rise of e-commerce platforms and online grocery shopping has made it easier for consumers to access and purchase RTD tea products. Online platforms provide a wide range of options and often offer discounts or promotions, making RTD tea more affordable and attractive to consumers. Furthermore, the increasing popularity of social media and influencer marketing has helped to create awareness and generate interest in RTD tea brands. Local special circumstances in China have further contributed to the development of the RTD tea market. Traditional tea culture has deep roots in Chinese society, and the popularity of RTD tea can be seen as an extension of this cultural preference. The availability of a wide variety of tea flavors and blends in the RTD format allows consumers to enjoy the convenience of a ready-to-drink beverage while still experiencing the familiar taste of traditional tea. Underlying macroeconomic factors have also played a role in the growth of the RTD tea market in China. The country's rapid urbanization and rising disposable income levels have resulted in a larger consumer base with increased purchasing power. As a result, more consumers are able to afford RTD tea products, driving demand and market growth. Additionally, the government's focus on promoting a healthy lifestyle and encouraging domestic consumption has further supported the growth of the RTD tea market. In conclusion, the Ready-to-Drink (RTD) Tea market in China is experiencing significant growth due to customer preferences for healthier beverage options, trends in the market such as e-commerce and influencer marketing, local special circumstances rooted in traditional tea culture, and underlying macroeconomic factors such as urbanization and rising disposable income levels. This growth is expected to continue as consumers increasingly seek out convenient and healthy beverage options.

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.