Ready-to-Drink (RTD) Tea - Brazil

The Ready-to-Drink (RTD) Tea market in Brazil has experienced significant growth in recent years.

Customer preferences: Brazilian consumers have shown a growing preference for healthier beverage options, which has contributed to the rise in popularity of RTD tea. With an increasing focus on health and wellness, consumers are actively seeking out beverages that offer functional benefits and natural ingredients. RTD tea appeals to this demand as it is often marketed as a refreshing and healthy alternative to carbonated soft drinks. Additionally, the convenience factor of RTD tea makes it an attractive option for on-the-go consumers who are looking for a quick and easy beverage option.

Trends in the market: One of the key trends in the RTD tea market in Brazil is the growing demand for flavored and functional teas. Consumers are looking for unique and innovative flavors, such as fruit-infused teas or teas with added botanical extracts. These flavors not only provide a refreshing taste but also offer additional health benefits. For example, teas infused with antioxidants or herbal extracts are popular among health-conscious consumers. Another trend in the market is the increasing availability of premium and organic RTD tea options. As consumers become more aware of the environmental and health impacts of their choices, they are willing to pay a premium for products that are sustainably sourced and free from artificial additives. This has led to the introduction of organic and fair-trade RTD tea brands in the market, catering to the demand for high-quality and ethically-produced beverages.

Local special circumstances: Brazil has a strong tea-drinking culture, with a variety of traditional teas consumed across the country. This cultural affinity for tea has laid a strong foundation for the growth of the RTD tea market. Additionally, Brazil's warm climate makes RTD tea a popular choice for refreshment, especially during the summer months. The availability of a wide range of tropical fruits in Brazil also contributes to the popularity of fruit-flavored RTD teas.

Underlying macroeconomic factors: The growing middle class in Brazil and increasing disposable incomes have played a significant role in the growth of the RTD tea market. As consumers have more purchasing power, they are able to spend on premium and healthier beverage options, such as RTD tea. Additionally, the urbanization and modernization of Brazil have led to changes in lifestyle and consumption patterns, with more consumers opting for convenient and ready-to-drink options. In conclusion, the Ready-to-Drink (RTD) Tea market in Brazil is experiencing growth due to the increasing preference for healthier beverage options, the demand for unique and innovative flavors, and the availability of premium and organic options. The cultural affinity for tea, Brazil's warm climate, and the growing middle class and disposable incomes are key factors driving the growth of the market.

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.