Middle East Ready to Drink Tea - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)
The Middle East Ready to Drink Tea Market size is estimated at 192.6 million USD in 2024, and is expected to reach 321.6 million USD by 2030, growing at a CAGR of 8.92% during the forecast period (2024-2030).
Herbal tea is expected to gain traction over 2024-2030 due to the medicinal benefits associated with it
Drinking tea has become an integral part of the culture of Middle Eastern countries. In 2023, the sales value of ready-to-drink (RTD) tea in the region surged by 15.64% from 2021. This growth is primarily fueled by consumers' increasing preference for healthier beverages and the convenience of RTD tea, which can be consumed on the go without any brewing or preparation.
By type, iced tea accounted for a significant share in 2023 across the region. Harsh climatic conditions, especially during the hot summer months in Middle Eastern countries, make RTD iced tea popular as a refreshing alternative to hot tea. Lemon and peach are the most popular flavored ice teas in the region. With the growing health-conscious and diabetic population, companies are expected to use healthier sugar substitutes, such as stevia, coconut sugar, organic honey, etc., to add sweetness to the iced teas.
RTD herbal is expected to gain more prominence in the future. These teas boast essential nutrients like calcium, magnesium, potassium, and vitamin C, along with immunity-boosting antioxidants. The demand for immunity-boosting products has seen a notable uptick, especially in the post-COVID-19 era.
When it comes to distribution, off-trade channels dominate the landscape. Among these, supermarkets/hypermarkets hold over 50% of the market share. Their wide product variety and influence on consumer decisions make them a preferred choice. Notable supermarket chains in the region include Carrefour, Lulu, Spar, West Zone, and Al Madina.
Growing consumer demand for convenience-friendly RTD beverages is fueling the market growth
The RTD tea market in the Middle East is witnessing robust growth, propelled by factors such as shifting consumer preferences, urbanization, rising disposable incomes, and a burgeoning young population. Thus, the sales value of RTD tea in the region surged by 16.50% in 2023 compared to 2021.
Saudi Arabia dominates the regional landscape, boasting the highest consumption of RTD tea. In 2023, the sales value of RTD tea in Saudi Arabia surged by 22.6% from 2020. The Saudi market for RTD tea is diversifying, offering a broad spectrum of flavors, ranging from traditional black and green teas to herbal blends and fruit-infused options. This market is gaining momentum, driven by the rising demand for on-the-go, convenience-oriented beverages catering to the fast-paced lives of consumers.
Among the Middle Eastern nations, the United Arab Emirates (UAE) stands out as the fastest-growing market, and it is projected to witness a CAGR of 10.09% in value from 2023 to 2030. The UAE's RTD tea market is expanding, fueled by a growing consumer emphasis on adopting healthier lifestyles, bolstered by heightened awareness of the health benefits associated with RTD tea. Some RTD teas in the UAE are fortified with functional ingredients like antioxidants, vitamins, minerals, and adaptogens, further enhancing their health appeal. Thus, local manufacturers are actively introducing new flavors in response to evolving consumer preferences.
Middle East Ready to Drink Tea Market Trends
Key product attributes shaping the market include flavor varieties, packaging formats, sweetness levels and functional ingredients
A significant growth in the RTD tea products consumption has been witnessed in the recent years due to changing consumer preferences, urbanization, increased working population. Green tea and organic tea are high in demand in the region.
Owing to the popularity of the RTD tea which driven largely by the products’ overall functional property-enhancing qualities more specifically those associated with boosting of consumers’ body immunity. The countries like UAE in middle east region, is experiencing a trend where consumers prefer green tea partly because of they have found new flavours in the product.
While, in UAE the average consumer spending on RTD tea has reached USD 3.7 in 2023 higher than USD 2.7 in 2020, as the tourist population is increasing. The spending on foods is high due to high disposable income in the countries like Saudi Arabia, Bahrain, UAE.
Consumers dealing with diabetes consider RTD tea for its health benefits and other benefits(functional benefits). In contrast, the obese population across this region are significantly changing their diety habits in order to maintain better health
Middle East Ready to Drink Tea Industry Overview
The Middle East Ready to Drink Tea Market is fairly consolidated, with the top five companies occupying 81.43%. The major players in this market are Keurig Dr Pepper, Inc., PepsiCo, Inc., Rauch Fruchtsдfte GmbH & Co OG, Sapporo Holdings Limited and The Coca-Cola Company (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Herbal tea is expected to gain traction over 2024-2030 due to the medicinal benefits associated with it
Drinking tea has become an integral part of the culture of Middle Eastern countries. In 2023, the sales value of ready-to-drink (RTD) tea in the region surged by 15.64% from 2021. This growth is primarily fueled by consumers' increasing preference for healthier beverages and the convenience of RTD tea, which can be consumed on the go without any brewing or preparation.
By type, iced tea accounted for a significant share in 2023 across the region. Harsh climatic conditions, especially during the hot summer months in Middle Eastern countries, make RTD iced tea popular as a refreshing alternative to hot tea. Lemon and peach are the most popular flavored ice teas in the region. With the growing health-conscious and diabetic population, companies are expected to use healthier sugar substitutes, such as stevia, coconut sugar, organic honey, etc., to add sweetness to the iced teas.
RTD herbal is expected to gain more prominence in the future. These teas boast essential nutrients like calcium, magnesium, potassium, and vitamin C, along with immunity-boosting antioxidants. The demand for immunity-boosting products has seen a notable uptick, especially in the post-COVID-19 era.
When it comes to distribution, off-trade channels dominate the landscape. Among these, supermarkets/hypermarkets hold over 50% of the market share. Their wide product variety and influence on consumer decisions make them a preferred choice. Notable supermarket chains in the region include Carrefour, Lulu, Spar, West Zone, and Al Madina.
Growing consumer demand for convenience-friendly RTD beverages is fueling the market growth
The RTD tea market in the Middle East is witnessing robust growth, propelled by factors such as shifting consumer preferences, urbanization, rising disposable incomes, and a burgeoning young population. Thus, the sales value of RTD tea in the region surged by 16.50% in 2023 compared to 2021.
Saudi Arabia dominates the regional landscape, boasting the highest consumption of RTD tea. In 2023, the sales value of RTD tea in Saudi Arabia surged by 22.6% from 2020. The Saudi market for RTD tea is diversifying, offering a broad spectrum of flavors, ranging from traditional black and green teas to herbal blends and fruit-infused options. This market is gaining momentum, driven by the rising demand for on-the-go, convenience-oriented beverages catering to the fast-paced lives of consumers.
Among the Middle Eastern nations, the United Arab Emirates (UAE) stands out as the fastest-growing market, and it is projected to witness a CAGR of 10.09% in value from 2023 to 2030. The UAE's RTD tea market is expanding, fueled by a growing consumer emphasis on adopting healthier lifestyles, bolstered by heightened awareness of the health benefits associated with RTD tea. Some RTD teas in the UAE are fortified with functional ingredients like antioxidants, vitamins, minerals, and adaptogens, further enhancing their health appeal. Thus, local manufacturers are actively introducing new flavors in response to evolving consumer preferences.
Middle East Ready to Drink Tea Market Trends
Key product attributes shaping the market include flavor varieties, packaging formats, sweetness levels and functional ingredients
A significant growth in the RTD tea products consumption has been witnessed in the recent years due to changing consumer preferences, urbanization, increased working population. Green tea and organic tea are high in demand in the region.
Owing to the popularity of the RTD tea which driven largely by the products’ overall functional property-enhancing qualities more specifically those associated with boosting of consumers’ body immunity. The countries like UAE in middle east region, is experiencing a trend where consumers prefer green tea partly because of they have found new flavours in the product.
While, in UAE the average consumer spending on RTD tea has reached USD 3.7 in 2023 higher than USD 2.7 in 2020, as the tourist population is increasing. The spending on foods is high due to high disposable income in the countries like Saudi Arabia, Bahrain, UAE.
Consumers dealing with diabetes consider RTD tea for its health benefits and other benefits(functional benefits). In contrast, the obese population across this region are significantly changing their diety habits in order to maintain better health
Middle East Ready to Drink Tea Industry Overview
The Middle East Ready to Drink Tea Market is fairly consolidated, with the top five companies occupying 81.43%. The major players in this market are Keurig Dr Pepper, Inc., PepsiCo, Inc., Rauch Fruchtsдfte GmbH & Co OG, Sapporo Holdings Limited and The Coca-Cola Company (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 EXECUTIVE SUMMARY & KEY FINDINGS
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Consumer Buying Behaviour
4.2 Innovations
4.3 Brand Share Analysis
4.4 Regulatory Framework
5 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VALUE IN USD AND VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Soft Drink Type
5.1.1 Green Tea
5.1.2 Herbal Tea
5.1.3 Iced Tea
5.1.4 Other RTD Tea
5.2 Packaging Type
5.2.1 Aseptic packages
5.2.2 Glass Bottles
5.2.3 Metal Can
5.2.4 PET Bottles
5.3 Distribution Channel
5.3.1 Off-trade
5.3.1.1 Convenience Stores
5.3.1.2 Online Retail
5.3.1.3 Supermarket/Hypermarket
5.3.1.4 Others
5.3.2 On-trade
5.4 Country
5.4.1 Qatar
5.4.2 Saudi Arabia
5.4.3 United Arab Emirates
5.4.4 Rest of Middle East
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Barakat Group of Companies
6.4.2 Keurig Dr Pepper, Inc.
6.4.3 Nai Arabia Food Company
6.4.4 Nestle S.A.
6.4.5 PepsiCo, Inc.
6.4.6 Rauch Fruchtsдfte GmbH & Co OG
6.4.7 Sapporo Holdings Limited
6.4.8 The Coca-Cola Company
6.4.9 The Savola Group
7 KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Consumer Buying Behaviour
4.2 Innovations
4.3 Brand Share Analysis
4.4 Regulatory Framework
5 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VALUE IN USD AND VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Soft Drink Type
5.1.1 Green Tea
5.1.2 Herbal Tea
5.1.3 Iced Tea
5.1.4 Other RTD Tea
5.2 Packaging Type
5.2.1 Aseptic packages
5.2.2 Glass Bottles
5.2.3 Metal Can
5.2.4 PET Bottles
5.3 Distribution Channel
5.3.1 Off-trade
5.3.1.1 Convenience Stores
5.3.1.2 Online Retail
5.3.1.3 Supermarket/Hypermarket
5.3.1.4 Others
5.3.2 On-trade
5.4 Country
5.4.1 Qatar
5.4.2 Saudi Arabia
5.4.3 United Arab Emirates
5.4.4 Rest of Middle East
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Barakat Group of Companies
6.4.2 Keurig Dr Pepper, Inc.
6.4.3 Nai Arabia Food Company
6.4.4 Nestle S.A.
6.4.5 PepsiCo, Inc.
6.4.6 Rauch Fruchtsдfte GmbH & Co OG
6.4.7 Sapporo Holdings Limited
6.4.8 The Coca-Cola Company
6.4.9 The Savola Group
7 KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
