Ready-to-Drink (RTD) Tea - Sweden

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

Customer preferences: Swedish consumers have shown a growing interest in healthier beverage options, which has contributed to the rise in popularity of RTD tea. With an increasing focus on health and wellness, consumers are seeking beverages that offer both taste and nutritional benefits. RTD tea provides a refreshing and convenient option for those looking for a healthier alternative to sugary soft drinks. Additionally, the trend towards natural and organic products has also influenced consumer preferences in the RTD tea market. Consumers are increasingly seeking out products that are made with natural ingredients and have minimal additives or preservatives.

Trends in the market: One of the key trends in the RTD tea market in Sweden is the growing demand for functional teas. Functional teas are those that offer specific health benefits, such as improved digestion or increased energy. These teas often contain ingredients like herbs, spices, or botanical extracts that are believed to have medicinal properties. The demand for functional teas is driven by consumers' desire to improve their overall well-being and address specific health concerns. Another trend in the market is the increasing availability of premium and specialty RTD teas. These teas are often made with high-quality ingredients and offer unique flavors and blends. The premium segment of the market is driven by consumers' willingness to pay a higher price for a superior product and their desire for a more indulgent tea-drinking experience.

Local special circumstances: Sweden has a strong coffee culture, with coffee being the beverage of choice for many Swedes. However, there is also a growing interest in tea, particularly among younger consumers. The popularity of tea has been boosted by the emergence of specialty tea shops and cafes, where consumers can explore a wide variety of teas from around the world. These establishments often offer RTD tea options, allowing consumers to enjoy their favorite teas on the go. Additionally, the increasing popularity of tea ceremonies and tea tastings has also contributed to the growth of the RTD tea market in Sweden.

Underlying macroeconomic factors: The growing RTD tea market in Sweden can be attributed to several macroeconomic factors. Firstly, the country's strong economy and high disposable income levels have allowed consumers to spend more on premium and specialty beverages. Additionally, the increasing focus on health and wellness has led consumers to prioritize healthier beverage options, such as RTD tea. Furthermore, the growing trend towards convenience and on-the-go consumption has also contributed to the rise in popularity of RTD tea. With busy lifestyles and a desire for convenience, consumers are seeking out beverages that can be easily consumed while on the move. The RTD tea market in Sweden is expected to continue to grow as these trends and factors continue to drive consumer demand.

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.