Ready-to-Drink (RTD) Tea - Nigeria

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

Customer preferences: Nigerian consumers have shown a growing preference for convenient and healthy beverage options. Ready-to-Drink (RTD) Tea offers a convenient solution for on-the-go consumption, making it popular among busy urban dwellers who are looking for a refreshing and healthy alternative to carbonated soft drinks. The increasing health consciousness among consumers has also contributed to the demand for RTD Tea, as it is perceived as a healthier choice compared to sugary beverages.

Trends in the market: One of the key trends in the RTD Tea market in Nigeria is the introduction of local flavors and ingredients. Nigerian consumers have a strong affinity for their local culture and flavors, and manufacturers have capitalized on this by incorporating local ingredients such as hibiscus, ginger, and moringa into their RTD Tea products. This not only appeals to the local taste preferences but also adds a unique selling point to the products. Another trend in the market is the focus on natural and organic ingredients. Consumers are increasingly seeking products that are free from artificial additives and preservatives. As a result, manufacturers are introducing RTD Tea products that are made with natural and organic ingredients, catering to the growing demand for healthier and more natural beverage options.

Local special circumstances: The Nigerian market has its unique set of challenges and opportunities for the RTD Tea industry. One of the challenges is the lack of cold chain infrastructure, particularly in rural areas. This poses a logistical challenge for manufacturers to distribute their products and maintain the quality and freshness of RTD Tea. However, this challenge also presents an opportunity for innovation, as manufacturers can explore alternative packaging and distribution methods to overcome this obstacle.

Underlying macroeconomic factors: The growth of the RTD Tea market in Nigeria can be attributed to several macroeconomic factors. Firstly, the country's growing middle class and urbanization have led to an increase in disposable income and a shift towards more premium and convenient beverage options. Additionally, the rising health consciousness among consumers, driven by increasing awareness of the health risks associated with sugary drinks, has fueled the demand for RTD Tea as a healthier alternative. In conclusion, the Ready-to-Drink (RTD) Tea market in Nigeria is experiencing growth due to the preferences of consumers for convenient and healthy beverage options. The introduction of local flavors and ingredients, as well as the focus on natural and organic ingredients, are key trends in the market. The lack of cold chain infrastructure poses a challenge for manufacturers, but also presents opportunities for innovation. The growth of the RTD Tea market in Nigeria is driven by the country's growing middle class, urbanization, and rising health consciousness among 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.