Even though many consumers had to re-think their many of their purchase decisions during the economic crisis, prioritising products they considered as essential, RTD tea continued to show steady growth in 2018. The category has seen increased penetration in off-trade outlets, thus consumers have greater access to this product, and better understand the benefits and purpose of these teas.
RTD tea has not yet defined a clear consumption occasion in consumers’ daily lives. While some prefer to replace carbonates with an RTD tea, others prefer to drink it in the afternoon or even accompanying a snack.
Leão Júnior continued to lead in terms off-trade volume share in 2018, through the Leão brand. It offers regular and low-calorie RTD tea in PET bottles of 300ml, 1.
Wow Indústria e Comércio Ltda ranks second in volume terms, with a significant lead over the third player, Cia Brasileira de Bebidas, but has been losing share in recent years, especially since 2016, when the category saw the arrival of many new small and regional players, and it lost Nestea brand. The company has been through several fiscal problems and even requested bankruptcy protection in 2017.
Craft producers have recently found a new field to explore: kombucha. Although it is still positioned as a niche product, with very low volume sales and unit prices of up to BRL60 – compared to a traditional RTD tea at BRL6/litre – many brands are already offering such products in the market.
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This industry report originates from Passport, our Soft Drinks market research database.