Ready-to-Drink (RTD) Tea - Egypt

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

Customer preferences: Egyptian consumers have shown a growing preference for healthier beverage options, which has contributed to the rise in popularity of RTD tea. With increasing health consciousness, consumers are seeking alternatives to sugary carbonated drinks and are turning to RTD tea as a healthier choice. The convenience of RTD tea, which can be consumed on-the-go, also appeals to busy urban consumers who are looking for quick and refreshing beverage options.

Trends in the market: One of the key trends in the RTD tea market in Egypt is the introduction of innovative flavors and blends. Manufacturers are constantly introducing new and unique flavors to cater to the diverse tastes of consumers. This trend is driven by the desire to differentiate products in a competitive market and to attract a wider consumer base. Additionally, there has been a growing trend towards natural and organic ingredients in RTD tea, as consumers are increasingly seeking products that are perceived to be healthier and more natural.

Local special circumstances: Egypt has a rich tea culture, with tea being a popular beverage among Egyptians. This cultural preference for tea has contributed to the growth of the RTD tea market in the country. Additionally, the hot climate in Egypt makes RTD tea a refreshing and popular choice among consumers, especially during the summer months.

Underlying macroeconomic factors: The growing middle class in Egypt, coupled with increasing disposable incomes, has played a significant role in the development of the RTD tea market. As consumers have more purchasing power, they are able to afford premium RTD tea products. Additionally, the urbanization and modernization of Egypt have led to changes in consumer lifestyles and preferences, with more consumers opting for convenience and ready-to-consume beverages like RTD tea. In conclusion, the Ready-to-Drink (RTD) Tea market in Egypt is experiencing growth due to changing customer preferences, the introduction of innovative flavors, local cultural preferences, and underlying macroeconomic factors such as the growing middle class and urbanization. As the market continues to evolve, it is expected that manufacturers will continue to innovate and introduce new products to cater to the diverse tastes and preferences of Egyptian consumers.

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.