Ready-to-Drink (RTD) Tea - Colombia

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

Customer preferences: Colombian consumers have shown a growing preference for healthier beverage options, which has contributed to the increasing popularity of RTD tea. As people become more health-conscious, they are seeking out beverages that offer both refreshment and nutritional benefits. RTD tea is seen as a healthier alternative to carbonated soft drinks, as it contains natural ingredients and is often low in calories. Additionally, the convenience factor of RTD tea appeals to busy consumers who are looking for on-the-go options.

Trends in the market: One of the key trends in the RTD tea market in Colombia is the introduction of innovative flavors and combinations. Manufacturers are constantly launching new and unique flavor profiles to cater to the diverse tastes of consumers. This trend is driven by the desire to stand out in a crowded market and attract new customers. Additionally, there has been a growing interest in herbal and organic RTD teas, as consumers seek out products that are perceived as more natural and sustainable. Another trend in the market is the increasing availability of RTD tea in different formats. While bottled RTD tea continues to dominate the market, there has been a rise in the popularity of canned and carton packaging. These alternative formats offer convenience and portability, making them appealing to consumers who are always on the move.

Local special circumstances: Colombia has a rich coffee culture, and tea consumption has traditionally been lower compared to other countries. However, there has been a shift in recent years, with more Colombians embracing tea as a beverage of choice. This change in consumer behavior can be attributed to various factors, including increased exposure to international trends and the growing influence of health-conscious lifestyles.

Underlying macroeconomic factors: The growing RTD tea market in Colombia is also influenced by macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income. As consumers have more spending power, they are willing to explore new beverage options, including RTD tea. Additionally, the expanding middle class in Colombia has contributed to the growth of the market, as this demographic segment is more likely to adopt new trends and try different products. In conclusion, the Ready-to-Drink (RTD) Tea market in Colombia is growing due to changing customer preferences, including a desire for healthier options and convenience. The market is characterized by innovative flavors and packaging formats, and there has been a shift in consumer behavior towards tea consumption. The growing economy and expanding middle class in Colombia are also contributing to the market's growth.

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.