Ready-to-Drink (RTD) Tea - Uruguay

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

Customer preferences: Uruguayans have shown a growing preference for healthier beverage options, which has contributed to the rise in demand for RTD tea. Consumers are increasingly looking for convenient and ready-to-consume beverages that offer health benefits. RTD tea fits these criteria, as it is often marketed as a natural and refreshing alternative to carbonated drinks. Additionally, the younger generation in Uruguay has shown a particular interest in RTD tea, as they are more health-conscious and willing to try new and innovative products.

Trends in the market: One of the key trends in the RTD tea market in Uruguay is the increasing variety of flavors and formulations available. Manufacturers are constantly introducing new and unique flavors to cater to different consumer preferences. Additionally, there has been a shift towards using natural ingredients and reducing the use of artificial additives and preservatives in RTD tea products. This trend is in line with the overall global movement towards healthier and more natural food and beverage options. Another trend in the market is the growing popularity of functional RTD teas. These are teas that are infused with additional ingredients, such as vitamins, minerals, or herbal extracts, to provide specific health benefits. Functional RTD teas are often marketed as energy-boosting, immune-boosting, or stress-relieving beverages. This trend is driven by the increasing consumer demand for products that not only taste good but also offer added health benefits.

Local special circumstances: Uruguay has a strong tea-drinking culture, with mate being the most popular traditional beverage in the country. Mate is a type of herbal tea made from the leaves of the yerba mate plant. This cultural affinity for tea has likely contributed to the growing popularity of RTD tea in Uruguay. Consumers are already familiar with tea as a beverage and are more likely to try RTD tea as a convenient alternative.

Underlying macroeconomic factors: The growing middle class in Uruguay has led to an increase in disposable income, allowing consumers to spend more on premium and healthier beverage options like RTD tea. Additionally, the improving economy and stable political environment in the country have attracted foreign investments in the food and beverage industry, leading to increased availability and accessibility of RTD tea products. In conclusion, the Ready-to-Drink (RTD) Tea market in Uruguay is experiencing growth due to customer preferences for healthier beverage options, the introduction of new flavors and formulations, and the cultural affinity for tea. The growing middle class and stable macroeconomic factors have also contributed to the development of the market.

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.