Ready-to-Drink (RTD) Tea - Vietnam

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

Customer preferences: Vietnamese consumers have shown a growing preference for healthier beverage options, which has contributed to the rise in demand for RTD tea. With increasing awareness about the health benefits of tea, consumers are seeking convenient and ready-to-consume tea options that offer both refreshment and nutritional value. RTD tea provides a convenient way for consumers to enjoy the taste and benefits of tea without the need for steeping or brewing.

Trends in the market: One of the key trends in the RTD tea market in Vietnam is the introduction of innovative flavors and formulations. Manufacturers are continuously launching new products with unique and exotic flavors to cater to the evolving tastes of consumers. This trend is driven by the desire for variety and novelty among consumers, who are looking for new and exciting options beyond traditional tea flavors. Another trend in the market is the focus on natural and organic ingredients. Consumers in Vietnam are increasingly concerned about the quality and origin of the ingredients used in their food and beverages. This has led to a growing demand for RTD tea products that are made with natural and organic ingredients, as they are perceived to be healthier and more environmentally friendly.

Local special circumstances: Vietnam has a strong tea culture, with tea being a popular beverage choice among the Vietnamese population. This cultural preference for tea has created a favorable environment for the growth of the RTD tea market. Consumers in Vietnam are already familiar with the taste and benefits of tea, making them more receptive to RTD tea products. Furthermore, the hot and humid climate in Vietnam makes RTD tea a refreshing and thirst-quenching option for consumers. The convenience and portability of RTD tea also make it a popular choice for on-the-go consumption, which is particularly important in a fast-paced and urbanized country like Vietnam.

Underlying macroeconomic factors: The growing middle class and rising disposable incomes in Vietnam have also played a significant role in driving the growth of the RTD tea market. As consumers have more purchasing power, they are able to afford premium and higher-priced RTD tea products. This has led to an increase in the demand for premium and specialty RTD tea brands in the market. Additionally, the increasing urbanization and modernization of Vietnam have contributed to the growth of the RTD tea market. With more people living in cities and leading busy lifestyles, there is a greater demand for convenient and ready-to-consume beverage options. RTD tea provides a convenient and healthy alternative to sugary carbonated drinks and other less healthy beverage options. In conclusion, the Ready-to-Drink (RTD) Tea market in Vietnam has been growing due to the increasing preference for healthier beverage options, the introduction of innovative flavors and formulations, the strong tea culture in Vietnam, the hot and humid climate, the growing middle class and rising disposable incomes, as well as the increasing urbanization and modernization of the country.

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.