Ready-to-Drink (RTD) Tea - Russia

The Ready-to-Drink (RTD) Tea market in Russia has been experiencing significant growth in recent years. Customer preferences for healthier beverage options, convenience, and the increasing popularity of tea culture have contributed to this trend.

Customer preferences: Russian consumers have been increasingly seeking healthier alternatives to traditional sugary soft drinks. Ready-to-Drink (RTD) Tea offers a refreshing and flavorful option that is perceived as a healthier choice. This trend is in line with global consumer preferences for beverages that are low in sugar and calories. Additionally, the convenience factor of RTD Tea appeals to busy consumers who are looking for on-the-go options.

Trends in the market: The RTD Tea market in Russia has seen a surge in product innovation and diversification. Manufacturers have been introducing new flavors and ingredients to cater to the evolving tastes and preferences of consumers. For example, there has been a growing demand for herbal and fruit-infused RTD teas, as well as teas with added functional benefits such as antioxidants or probiotics. This trend reflects the increasing interest in wellness and the desire for beverages that offer additional health benefits. Another notable trend in the RTD Tea market in Russia is the growing popularity of premium and artisanal tea brands. Consumers are willing to pay a premium for higher-quality teas that are sourced from specific regions and have unique flavor profiles. This trend is driven by the increasing appreciation for tea as a sophisticated beverage and the desire to explore different tea varieties and blends.

Local special circumstances: Tea has a long-standing cultural significance in Russia, and it has been traditionally consumed as a hot beverage. However, the growing popularity of RTD Tea indicates a shift in consumer behavior towards cold tea consumption. This change can be attributed to the changing lifestyle patterns, where consumers are seeking refreshing and convenient alternatives to traditional hot tea. Additionally, the rise of coffee culture in Russia has also influenced the demand for RTD Tea, as consumers are looking for alternative beverages to coffee.

Underlying macroeconomic factors: The growing middle class in Russia has contributed to the increasing demand for RTD Tea. As disposable incomes rise, consumers have more purchasing power to spend on premium and healthier beverage options. Additionally, the urbanization trend in Russia has led to a faster pace of life, with consumers seeking convenient and on-the-go options. RTD Tea fits well into this lifestyle, as it offers a refreshing and portable beverage option. In conclusion, the RTD Tea market in Russia is experiencing growth due to customer preferences for healthier options, convenience, and the increasing popularity of tea culture. Product innovation, premiumization, and the cultural significance of tea in Russia are driving this trend. The growing middle class and urbanization are also contributing factors to the market's development.

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.