Ready-to-Drink (RTD) Tea - Lesotho

The Ready-to-Drink (RTD) Tea market in Lesotho has been experiencing significant growth in recent years. Customer preferences have shifted towards healthier beverage options, leading to an increased demand for RTD tea products. Additionally, local special circumstances and underlying macroeconomic factors have contributed to the development of the market.

Customer preferences: In line with global trends, customers in Lesotho are becoming more health-conscious and are seeking out healthier beverage options. RTD tea provides a convenient and refreshing alternative to sugary carbonated drinks. The natural ingredients and perceived health benefits of tea have made it a popular choice among consumers. Furthermore, the variety of flavors and options available in the RTD tea market caters to different taste preferences, further driving its popularity.

Trends in the market: The RTD tea market in Lesotho has witnessed a surge in new product launches and innovations. Manufacturers are introducing unique flavors and blends to cater to the diverse preferences of consumers. Additionally, there has been a growing emphasis on natural and organic ingredients, as consumers are increasingly seeking products that are free from artificial additives and preservatives. This trend is aligned with the global shift towards clean label products.

Local special circumstances: Lesotho's unique geographical location, with its high altitude and cool climate, provides favorable conditions for tea cultivation. This has led to the establishment of local tea plantations, contributing to the availability of locally sourced tea for the RTD tea market. The use of locally sourced ingredients adds to the appeal of these products, as consumers are increasingly interested in supporting local businesses and reducing their carbon footprint.

Underlying macroeconomic factors: The growing middle class in Lesotho has led to an increase in disposable income, allowing consumers to spend more on premium and healthier beverage options. Additionally, urbanization and changing lifestyles have resulted in a shift towards convenience products, such as RTD tea. The increasing availability of RTD tea products in supermarkets and convenience stores has made it more accessible to consumers, further driving its demand. In conclusion, the Ready-to-Drink (RTD) Tea market in Lesotho is developing due to shifting customer preferences towards healthier beverage options, the introduction of new flavors and blends, the availability of locally sourced ingredients, and underlying macroeconomic factors such as the growing middle class and urbanization. These factors have contributed to the growth and popularity of RTD tea in Lesotho, making it a lucrative market for manufacturers and suppliers.

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.