Taxes on carbonates and energy drinks have caused a shift with consumers searching for substitutes that are perceived to be healthier. Consumers are increasingly looking at healthier variants and beverages that are hydration-centric and functional.
Steps towards sugar reduced variants in addition to different flavours have already been implemented, although manufacturers will need to innovate more in this space. Unlike some other markets, carbonated RTD tea will need developing in the United Arab Emirates.
Unilever Gulf FZE continued to lead RTD tea in the United Arab Emirates in 2018 in off-trade value terms. Unilever has increased its investment in the country in a bid to expand its regional customer base.
Pokka from National Trading & Development Est (NTDE) was ranked higher in off-trade volume terms in RTD tea in second position than its third ranking in off-trade value terms. Pokka has benefitted from an increase in distribution across all major retail chains, as well as in more traditional outlets and growing brand equity.
RTD tea flavours such as raspberry, peach and lemon remain popular; however, new flavours are being launched with an added element of functionality and catering to more health-centric consumption occasions. An increasing number of fruits has become available, with Arizona from AriZona Beverage Co LLC being the most innovative; it offers a number of innovative functional benefits.
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This industry report originates from Passport, our Soft Drinks market research database.