Ready-to-Drink (RTD) Tea - Iceland

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

Customer preferences: Icelandic consumers have shown a growing preference for healthier beverage options, which has contributed to the increasing demand for RTD tea. With rising health consciousness and a desire for natural and functional ingredients, many consumers are turning to RTD tea as a refreshing and nutritious alternative to sugary carbonated drinks. The convenience of ready-to-drink formats also appeals to busy individuals who are looking for on-the-go options.

Trends in the market: One of the key trends in the RTD tea market in Iceland is the growing popularity of herbal and fruit-infused teas. Consumers are gravitating towards unique and exotic flavors, such as hibiscus, chamomile, and green tea with lemon. These flavors not only provide a refreshing taste but also offer potential health benefits. Additionally, there is a rising demand for organic and natural ingredients in RTD tea, as consumers seek products that align with their values of sustainability and environmental consciousness. Another trend in the market is the emergence of functional RTD teas. These products are formulated with added ingredients such as vitamins, antioxidants, and botanical extracts to provide specific health benefits. Functional RTD teas targeting immune support, stress relief, and energy enhancement have gained traction among health-conscious consumers in Iceland.

Local special circumstances: Iceland's unique geographical location and climate present certain challenges for the RTD tea market. The country's cold climate and short growing season make it difficult to cultivate tea leaves locally. As a result, most of the RTD tea consumed in Iceland is imported. This reliance on imports can impact pricing and availability of certain products, as well as the overall market competitiveness.

Underlying macroeconomic factors: The growing RTD tea market in Iceland can be attributed to several macroeconomic factors. Firstly, the country's strong economy has led to increased disposable income among consumers, allowing them to spend more on premium and healthier beverage options like RTD tea. Secondly, the influence of global health and wellness trends has also played a role in shaping consumer preferences for healthier alternatives. As Icelandic consumers become more health-conscious, the demand for RTD tea is expected to continue growing. In conclusion, the Ready-to-Drink (RTD) Tea market in Iceland is experiencing growth due to the increasing preference for healthier beverage options, the emergence of unique flavors and functional ingredients, and the influence of global health and wellness trends. However, the market is also impacted by local special circumstances such as the country's reliance on imports and the challenges posed by its geographical location and climate. Overall, the macroeconomic factors of Iceland's strong economy and growing disposable income contribute to the growth of the RTD tea market in 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.