South America RTD Tea & Coffee Market Outlook, 2028

The South American RTD tea and coffee market is a growing and dynamic industry that is influenced by the region's cultural preferences and consumption habits. The South American RTD tea and coffee market has experienced significant growth in recent years. Increasing urbanisation, changing consumer lifestyles, and a growing preference for convenient beverage options have contributed to the market's expansion. Tea and coffee have long been popular beverages in South America, with countries like Argentina, Brazil, and Colombia having strong coffee and tea cultures. In addition to traditional hot-brewed coffee, RTD coffee has gained popularity as a convenient and on-the-go option. Similarly, RTD tea appeals to consumers looking for refreshing and ready-to-drink alternatives. This region offers a wide range of flavours and varieties in the RTD tea and coffee markets. Local preferences often include traditional flavours and indigenous ingredients, such as mate (a traditional South American herbal tea) and various fruit-infused teas and coffees. Similar to global trends, there is an increasing demand for healthier and more functional RTD tea and coffee options in South America. Consumers are seeking products with natural ingredients, reduced sugar content, and added health benefits, such as antioxidants and vitamins. According to the research report "South America RTD Tea and Coffee Market Outlook, 2028," published by Bonafide Research, the market is anticipated to add USD 1.57 billion in market size from 2023–28. The speedy ways of life of South American shoppers drive their interest in helpful and compact refreshment choices. Tea and coffee that are ready-to-drink (RTD) products offer a time-saving and convenient option for modern life. As well, South America is witnessing rapid urbanisation, with a significant portion of the population residing in cities. Urban dwellers often seek quick and accessible beverage options, making RTD tea and coffee an appealing choice. Coffee and tea have deep-rooted cultural significance in South America. The region is known for its coffee production and traditional tea customs like mate. This cultural connection to coffee and tea drives the demand for RTD options that align with local preferences. Based on the types of segments, which include ready-to-drink tea and ready-to-drink coffee, in South America, ready-to-drink coffee holds the highest market share. Coffee is more than just a beverage in South America; it is a ritual and a social experience. In many South American countries, starting the day with a cup of coffee is a common practise. Family and friends often gather to enjoy coffee together, fostering social connections and conversation. South America is home to a diverse range of coffee varieties, each with its own unique characteristics and flavours. For example, Brazil is known for its smooth and nutty Arabica beans, while Colombia is renowned for its well-balanced and aromatic Arabica coffee. These different coffee varieties contribute to the richness and diversity of South American coffee culture. RTD coffee often appeals to younger consumers, who value convenience and seek innovative beverage options. The younger generation in South America is increasingly open to trying new flavours and embracing global beverage trends. Alongside traditional black coffee, RTD coffee options in South America now include a variety of flavours, such as mocha, latte, cappuccino, and iced coffee. This expansion of product offerings allows consumers to explore different coffee experiences and find their preferred flavours. In South America, cappuccino-flavoured RTD coffee, with its creamy texture and balanced combination of espresso and milk, is another popular choice. It offers a milder and smoother taste compared to black coffee. As well as the vanilla-flavoured RTD coffee, with its sweet and aromatic notes, which has gained popularity among consumers seeking a hint of sweetness in their coffee, these are the RTD coffees that are trending.

Based on the packaging types, the segment includes the pet bottle, canned, glass bottle, fountain/aseptic, and others (pouches, cartoons, and cups). In South America, pet bottles hold the highest market shares in the region. In the future, canned goods are expected to grow at the highest CAGR rate. Aluminium cans are widely used for packaging RTD tea and coffee. They are lightweight, durable, and provide excellent protection against light and oxygen, ensuring the quality and freshness of the beverages. Aluminium cans are also easily recyclable, which aligns with sustainability initiatives. Furthermore Nitro cans are specially designed cans equipped with a nitrogen widget. When opened, the widget releases nitrogen into the beverage, creating a smooth and creamy texture similar to nitro-infused coffee or tea. Nitro cans provide a unique and indulgent drinking experience. These types of canned goods are now generally used more in the South American region. Based on the pricing segment, there are the regular price ranges: regular ($0.50 to $2 per unit), popular priced ($2 to $4), premium ($4 to $8), fountain, and super premium. In South America, the regular price range segment holds the highest market shares in the region. Due to the regular price range, it caters to a broader consumer base and offers more affordable options. South America has diverse economic demographics, and the regular price range allows a larger portion of the population to access and enjoy RTD coffee without a significant financial burden. The regular price range segment often faces intense competition, which drives companies to offer competitive pricing and attract a larger consumer base. This competitive environment contributes to the dominance of the regular price range in the RTD coffee market in South America. Some of the South American government initiatives and policies regarding the RTD tea and coffee market, Governments in South America often establish regulations and standards to ensure the safety and quality of RTD tea and coffee products. This includes guidelines for ingredients, labelling requirements, manufacturing processes, and hygiene standards. Governments may have specific regulations governing the import and export of RTD tea and coffee products. This includes requirements for product labelling, certification, and compliance with health and safety standards. Governments may impose taxes and tariffs on RTD tea and coffee products as part of their fiscal policies. These taxes can impact pricing and profitability for manufacturers and importers. Some South American countries’ governments may implement policies to promote and support the production and consumption of locally sourced tea and coffee products. This can include providing incentives to local producers, promoting domestic brands, or creating marketing campaigns to raise awareness of locally made RTD beverages. Based on the distribution channels, which include the off-trade and on-trade channels, in South America, the off-trade sales channel is leading the market. Considered in this report

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Manmayi Raval

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• Geography: South America • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • South America Ready to Drink Tea & Coffee market with its value and forecast along with its segments • On-going trends and developments • Top profiled companies • Strategic recommendation

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Countries Covered in this report • Brazil • Argentina • Colombia By Type • Ready to Drink Tea • Ready to Drink Coffee By Packaging • Pet Bottle • Canned • Glass Bottle • Fountain/Aseptic • Others (Pouches, Cartoons and Cups) By Price • Regular ($0.50 to $2 per unit) • Popular Priced ($2 TO $4) • Premium ($4 to $8) • Super Premium (above $8) • Fountain By Distribution Channel • Off-trade • On-trade (Food Service and Vending) The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to ready to Drink Tea & Coffee industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.