The rate of decline in off-trade current value sales of RTD tea accelerated during 2021. With restrictions on movement tightening during 2021, impulse purchases and on-the-go consumption were particularly hard hit, with forecourt retailers seeing a small, but significant, decline in retail value share.
In view of Malaysians’ growing emphasis on health and wellness, there is a shift in preference within RTD tea, from traditional sweetened tea flavours towards less sugary options or green tea variants. Green tea in particular is seeing strong growth in off-trade volume sales due to its strong health positioning, widening distribution and burgeoning number of flavour variants.
In May 2021, Nestlé launched a new brand of RTD tea called Lively, which is infused with extracts from rejuvenating plants that the company claims are known for their “recharging” effects on the body. Its three flavours – Orange Guarana, Raspberry Lemon Balm and Pear Schisandra – are positioned as aiding “focus,” “calm” and “energy,” respectively.
With pandemic restrictions likely to be eased, off-trade volume sales of RTD tea are set to rebound strongly during 2022 and post robust growth during the remainder of the forecast period. The deepening health and wellness trend will be the main driver of this growth, as a growing number of local consumers turn away from carbonates towards other types of soft drinks with a healthier positioning, such as RTD tea.
Although the importance of e-commerce as a distribution channel for RTD grew in 2020 and (to a lesser extent) in 2021, it remains of minor importance. E-commerce is not likely to become a major channel for RTD tea during the forecast period because consumption occasions for this category tend to revolve around on-the-go lifestyles, which will gradually return as COVID-19 restrictions are eased.
This category has been seeing a lot of new flavours, as well as newer brands entering. It is likely that this dynamic will continue during the forecast period, as RTD offerings are developed to mimic speciality teas and to offer sugar-free alternatives.
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Understand the latest market trends and future growth opportunities for the RTD Tea industry in Malaysia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the RTD Tea industry in Malaysia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This category includes all packaged products based on brewed tea or tea extract. May be sweetened or unsweetened, carbonated or still, with a wide variety of different flavourings. May contain juice.See All of Our Definitions
This report originates from Passport, our RTD Tea research and analysis database.
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