Ready-to-Drink (RTD) Tea - Malaysia

The Ready-to-Drink (RTD) Tea market in Malaysia has been experiencing significant growth in recent years. This can be attributed to several factors, including changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: One of the main reasons for the growth of the RTD Tea market in Malaysia is the changing preferences of customers. As consumers become more health-conscious, they are increasingly opting for beverages that are perceived as healthier alternatives to carbonated drinks. RTD Tea, with its natural ingredients and lower sugar content, has gained popularity among health-conscious consumers. Additionally, the convenience factor of ready-to-drink beverages appeals to busy urban consumers who are looking for on-the-go options.

Trends in the market: The RTD Tea market in Malaysia is also being driven by several emerging trends. One of these trends is the increasing demand for natural and organic products. Consumers are becoming more aware of the potential health benefits of natural ingredients and are willing to pay a premium for products that are perceived as healthier and more sustainable. This trend has led to the introduction of RTD Tea products that are made with natural and organic ingredients, catering to the growing demand for healthier options. Another trend in the market is the rise of innovative flavors and blends. Manufacturers are constantly introducing new and unique flavors to attract consumers and differentiate their products from competitors. This trend has led to a wide variety of RTD Tea flavors available in the market, ranging from traditional flavors like green tea and black tea to more exotic options like fruit-infused teas and floral blends.

Local special circumstances: The Malaysian market also has its own unique set of circumstances that contribute to the growth of the RTD Tea market. Malaysia has a tropical climate, with hot and humid weather throughout the year. This climate creates a natural demand for refreshing and hydrating beverages, making RTD Tea a popular choice among consumers. Additionally, Malaysia has a diverse population with a mix of different ethnicities and cultures. This diversity has led to the introduction of unique flavors and blends that cater to the preferences of different consumer groups.

Underlying macroeconomic factors: The growth of the RTD Tea market in Malaysia is also influenced by underlying macroeconomic factors. Malaysia has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. This has resulted in a higher demand for convenience products like RTD Tea. Additionally, the urbanization and modernization of Malaysian cities have created a fast-paced lifestyle, where consumers are looking for convenient and on-the-go options. RTD Tea caters to this demand, providing a refreshing and convenient beverage choice for busy urban consumers. In conclusion, the Ready-to-Drink (RTD) Tea market in Malaysia is growing due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The increasing demand for healthier and more convenient beverages, the introduction of innovative flavors and blends, the tropical climate and diverse population of Malaysia, and the country's steady economic growth and urbanization all contribute to the growth of the RTD Tea market in Malaysia.

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.