Ready-to-Drink (RTD) Tea - Hong Kong

The Ready-to-Drink (RTD) Tea market in Hong Kong has seen significant growth in recent years, driven by changing consumer preferences and local special circumstances.

Customer preferences: Hong Kong consumers are increasingly seeking healthier beverage options, and RTD tea has emerged as a popular choice. With its natural ingredients and lower sugar content compared to carbonated soft drinks, RTD tea appeals to health-conscious individuals looking for a refreshing and guilt-free beverage. Additionally, the convenience factor of RTD tea, which can be consumed on-the-go, aligns with the fast-paced lifestyle of Hong Kong residents.

Trends in the market: One of the key trends in the RTD tea market in Hong Kong is the growing demand for premium and specialty teas. Consumers are becoming more discerning and are willing to pay a premium for high-quality teas that offer unique flavors and health benefits. This trend has led to the introduction of a wide variety of RTD tea options in the market, including herbal teas, green teas, and fruit-infused teas. Another trend in the market is the increasing popularity of RTD milk teas, which are a local favorite in Hong Kong. Milk tea, also known as "pantyhose tea," is a blend of black tea and evaporated milk, and is often sweetened with condensed milk. This unique flavor profile has gained a loyal following in Hong Kong, and RTD milk teas have become a staple in convenience stores and supermarkets.

Local special circumstances: Hong Kong's hot and humid climate provides a favorable environment for the consumption of RTD tea. The refreshing and hydrating properties of tea make it a popular choice for quenching thirst and providing relief from the heat. Additionally, the influence of Chinese culture and traditions in Hong Kong has contributed to the popularity of tea as a beverage of choice.

Underlying macroeconomic factors: The growing middle class in Hong Kong, coupled with rising disposable incomes, has contributed to the growth of the RTD tea market. As consumers become more affluent, they are willing to spend more on premium and healthier beverage options, driving the demand for RTD tea. Furthermore, the increasing awareness of health and wellness among consumers has led to a shift towards healthier beverage choices. RTD tea, with its natural ingredients and perceived health benefits, aligns with this trend and has gained traction among health-conscious individuals. In conclusion, the Ready-to-Drink (RTD) Tea market in Hong Kong is experiencing growth due to changing customer preferences, including a demand for healthier beverage options and a preference for premium and specialty teas. The local special circumstances, such as the hot and humid climate and the influence of Chinese culture, also contribute to the popularity of RTD tea. Additionally, underlying macroeconomic factors, such as the growing middle class and rising disposable incomes, have fueled the growth of the market. Overall, the RTD tea market in Hong Kong is poised for continued expansion in the coming years.

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.