Ready-to-Drink (RTD) Coffee & Tea - Central America

The Ready-to-Drink (RTD) Coffee & Tea market in Central America has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the RTD Coffee & Tea market in Central America is the changing preferences of consumers. With a growing middle class and increasing urbanization, consumers are seeking convenient and on-the-go beverage options. Ready-to-drink coffee and tea products provide a convenient solution for busy individuals who want to enjoy their favorite beverages without the hassle of brewing or steeping.

Trends in the market: In Central America, there is a growing trend towards healthier lifestyles and wellness. As a result, consumers are increasingly looking for beverages that not only taste good but also offer health benefits. This has led to a rise in demand for RTD coffee and tea products that are low in sugar and calories, and that contain natural ingredients. Manufacturers are responding to this trend by launching new products that cater to these preferences, such as organic and plant-based options. Another trend in the RTD Coffee & Tea market in Central America is the increasing popularity of premium and specialty products. Consumers are willing to pay a premium for high-quality and unique beverages that offer a superior taste experience. This has led to the introduction of gourmet coffee and tea flavors, as well as innovative packaging designs that enhance the overall product experience.

Local special circumstances: Central America is known for its rich coffee and tea culture, with countries like Costa Rica and Guatemala being renowned for their high-quality coffee beans. This local specialty has contributed to the growth of the RTD Coffee & Tea market in the region, as consumers are eager to explore different flavors and varieties of coffee and tea. Furthermore, Central America has a warm climate, which makes chilled beverages more appealing to consumers. Ready-to-drink coffee and tea products offer a refreshing and convenient option for consumers to quench their thirst and enjoy a caffeine boost at the same time.

Underlying macroeconomic factors: The economic growth and stability in Central America have also played a role in the development of the RTD Coffee & Tea market. As disposable incomes rise and the standard of living improves, consumers have more purchasing power to spend on premium and convenience products. This has created a favorable market environment for RTD coffee and tea manufacturers to expand their presence and introduce new products to meet the growing demand. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Central America is experiencing growth due to changing customer preferences, including the demand for convenient and healthier beverage options. The market is also influenced by local factors such as the region's coffee and tea culture and the warm climate. Additionally, the region's economic growth and stability have created a favorable market environment for the expansion of the RTD Coffee & Tea 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.