RTD Tea in Sweden

2020 IMPACT

On-trade growth declines as consumers avoid public locations, through fear of contracting COVID-19

Although on-trade establishments were not forced to close at any point during 2020, consumers visited out of home locations less, through fear of contracting the COVID-19 virus. As such, a double-digit decline in both off-trade volume and value growth is predicted for 2020, with both these areas having recorded double-digit growth in 2019.

Lack of on-the-go consumers leads to a decline in sales for convenience stores and forecourt retailers

As a response to the outbreak of COVID-19 in Sweden, travelling is not recommended, however, there is no ban. As such, some Swedes continued to travel around the country, however, most opted to remain at home, working from home if possible.

Sales of multipack offerings and private label increases, as price-sensitivity heightens

With consumers in 2020 aiming to reduce the time spent in stores, sales of impulse products, such as RTD tea, is suffering. However, consumers were more focused on stocking up, and as such, demand grew for larger and multipack packaging solutions.

RECOVERY AND OPPORTUNITIES

Positive results for the forecast period, as growth recovers from 2021

While on-trade volume sales are set to record a double-digit decline in 2020, by 2021, on-trade value and volume sales are both expected to record double-digit growth. This will be the outcome of consumers feeling more confident to socialise in public once more, visiting on-trade establishments that sell RTD tea.

New launches are set to support ongoing positive growth across the forecast period

With RTD tea having strong potential across the forecast period, new product launches are expected for the coming years. At the end of the review period, Heba Food and Beverages AB launched Hungarian Xixo, and Croatian Jana IceTea was also launched at CityGross.

Private label lines set to rise, as well as healthier, organic and more expensive offerings

The economic recession is expected to put pressure on some consumers across the early forecast period. This is set to lead to the continued support of private label sales in RTD tea, with ICA Iste and Freeway both recording heightened growth and sales in 2020, while Pfanner Ice Tea saw a decline in share.