Market Trends of Ready-to-Drink Tea Industry
This section covers the major market trends shaping the South America RTD Tea Market according to our research experts:
Supermarket/ Hypermarket is the Most Preferred Sales Channel
The increase in demographics spending, ease, and convenience through supermarket purchases is expected to pave a strong pathway for RTD tea manufacturers to penetrate, particularly in the developing countries, where these stores are being set in large numbers. Consumers prefer purchasing the food & beverage products through supermarkets, as it serves as a platform with the availability of all the products in one place, which saves time and energy. The supermarket/hypermarket chains are searching for new ways to increase sales through their channels. Discount offers, lending new attractive look to the products and making brochures are some of the techniques being adopted to increase sales.
Brazil Dominates the Market
Despite the unstable economic scenario faced by the country in the last few years, still, RTD tea has shown resilience in volume growth terms. This performance has been achieved mainly through constant innovation, either in terms of new brands entering the market, new flavors being launched, or changes in pack size/type. Brazilian manufacturers are investing in specialist tea shops. One of the most important ones is TeaShop, a Spanish chain that already runs 34 stores in the country. Manufacturers are also focusing on expanding the product portfolio by introducing innovative products with new flavors. For instance, Suivie, for example, launched a version with jabuticaba fruit, apple, and ginger.
