Ready-to-Drink (RTD) Coffee - Sri Lanka

The Ready-to-Drink (RTD) Coffee market in Sri Lanka has been experiencing significant growth in recent years.

Customer preferences: One of the key reasons for the growth of the RTD Coffee market in Sri Lanka is the changing preferences of consumers. Sri Lankans are increasingly adopting a more fast-paced and on-the-go lifestyle, leading to a higher demand for convenient and ready-to-consume beverages. RTD Coffee offers a convenient solution for consumers who want to enjoy the taste of coffee without the need for brewing or preparing it themselves. Additionally, the younger generation in Sri Lanka, who are more open to trying new and innovative products, are driving the demand for RTD Coffee.

Trends in the market: One of the major trends in the RTD Coffee market in Sri Lanka is the introduction of new flavors and varieties. Manufacturers are constantly innovating and launching new products to cater to the evolving tastes and preferences of consumers. Flavors such as vanilla, mocha, and caramel are gaining popularity among Sri Lankan consumers. Moreover, there is a growing demand for healthier options in the RTD Coffee segment, leading to the introduction of low-sugar and plant-based alternatives.

Local special circumstances: Sri Lanka is known for its strong tea culture, with tea being the preferred hot beverage among locals. However, the increasing influence of Western culture, particularly among the urban population, has led to a rise in coffee consumption. While traditional coffee consumption is still prevalent, the convenience and portability of RTD Coffee make it an attractive option for busy Sri Lankans who want to enjoy coffee on the go.

Underlying macroeconomic factors: The growing middle-class population and increasing disposable income levels in Sri Lanka have also contributed to the growth of the RTD Coffee market. As more consumers have the financial means to spend on indulgent and convenient products, the demand for RTD Coffee is expected to continue rising. Additionally, the expanding urbanization and the rise of modern retail channels, such as supermarkets and convenience stores, have made RTD Coffee more accessible to a larger consumer base. In conclusion, the Ready-to-Drink (RTD) Coffee market in Sri Lanka is witnessing significant growth due to changing customer preferences, the introduction of new flavors and varieties, the influence of Western culture, and underlying macroeconomic factors such as the growing middle class and increasing disposable income levels. The convenience and portability of RTD Coffee make it an appealing option for Sri Lankans who lead busy lifestyles and want to enjoy coffee on the go.

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.