Transformation of RTD Tea Positioning in Key European Markets

Delivery

This report comes in PPT.

Key findings: RTD tea has successfully transformed its positioning

RTD tea upgrades its positioning

In Western Europe, RTD tea is a mature category with well-established brands. Its positioning changed over recent years. It has moved from a highly commoditised and refreshment positioning with a high private label share to a category that clearly aligns with current consumer trends and creates value by refining its positioning.

The sugar reduction trend drives growth in healthier RTD tea variants

The healthy living trend encompasses the reduction of sugar in consumers’ diets. This trend has been forcing the wider soft drinks space, including RTD tea, to reformulate or to innovate with reduced sugar variants.

Consumers ask for more natural and organic RTD tea

Consumers who are health- and eco-conscious have been actively purchasing RTD tea brands that have natural and/or organic credentials. As a result, new entrants and legacy brands have had to readjust their portfolios.

Companies use functionality to address consumer need states

Brands emphasise the functionality of RTD tea by positioning it to address different consumer needs. From natural energy, to botanicals and probiotics, functional RTD teas have been gaining popularity in Western Europe, which has helped in driving value.

Brands transform the taste and flavour profiles of RTD tea

RTD tea brands have changed their traditional taste and flavour profiles to more original combinations. Fuze Tea, by Coca-Cola, is a notable example, which has paved the way for a series of innovations from large and smaller brands.