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

The Ready-to-Drink (RTD) Tea market in Central America is experiencing significant growth and development.

Customer preferences: Consumers in Central America are increasingly seeking healthier beverage options, which has contributed to the growing demand for RTD tea. RTD tea is perceived as a healthier alternative to carbonated soft drinks, as it is often made from natural ingredients and contains fewer calories. Additionally, the convenience of RTD tea appeals to busy consumers who are looking for convenient and on-the-go options.

Trends in the market: One trend that is driving the growth of the RTD tea market in Central America is the increasing popularity of flavored and functional teas. Consumers are seeking unique and innovative flavors, as well as teas that offer specific health benefits, such as detoxification or relaxation. This has led to the introduction of a wide variety of flavored and functional RTD teas in the market. Another trend in the market is the rising demand for organic and natural RTD teas. Consumers are becoming more conscious about the ingredients in their beverages and are willing to pay a premium for products that are made from natural and organic ingredients. As a result, many companies are now offering organic and natural RTD teas to cater to this growing demand.

Local special circumstances: Central America has a rich tea culture, with countries like Guatemala and Costa Rica being known for their high-quality tea production. This has created a favorable environment for the growth of the RTD tea market, as consumers are already familiar with and appreciate tea as a beverage. Additionally, the tropical climate in Central America makes it an ideal region for tea cultivation, further supporting the local tea industry.

Underlying macroeconomic factors: The growing middle class in Central America has contributed to the increasing demand for RTD tea. As disposable incomes rise, consumers have more purchasing power and are willing to spend on premium and healthier beverage options. Additionally, the region's growing tourism industry has also played a role in driving the demand for RTD tea, as tourists are often looking for refreshing and convenient beverages while exploring the region. In conclusion, the Ready-to-Drink (RTD) Tea market in Central America is experiencing growth due to the increasing customer preference for healthier beverage options, the introduction of flavored and functional teas, the demand for organic and natural products, the local tea culture, and the region's growing middle class and tourism industry.

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.