Home » South America RTD Tea and Coffee Market is anticipated to add USD 1.57 billion in market size from 2023–28
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South America RTD Tea and Coffee Market is anticipated to add USD 1.57 billion in market size from 2023–28

Tea and coffee has long been popular beverage in South America. The region is known for its coffee production and traditional tea customs like mate. 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. 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. Consumers can indulge in unique blends infused with regional ingredients, such as yerba mate, guayusa, cacao, and tropical fruits, offering a captivating sensory experience that reflects the cultural tapestry of the continent.

The region’s coffee-loving culture, coupled with evolving consumer preferences, urbanization, and a rising disposable income, has propelled this surge in demand. South America is renowned for its exceptional coffee beans, and the RTD Coffee market reflects the diversity of flavors and profiles available. From the bold and intense taste of Brazilian coffee to the delicate and fruity notes of Colombian beans, consumers can savor a wide array of coffee experiences, capturing the essence of the region’s coffee heritage. Conscious consumption is gaining prominence in South America, and consumers are increasingly gravitating towards RTD coffee brands that emphasize sustainability and support fair trade practices. Manufacturers are responding by showcasing their commitment to eco-friendly sourcing, promoting ethical practices, and supporting local coffee growers.

Coffee has a strong cultural presence in many South American countries, where it is often enjoyed as a daily ritual and considered a staple beverage. Countries like Brazil, Colombia, and Peru are renowned for their coffee production and consumption.  In countries like Argentina and Uruguay, for example, mate tea is widely consumed and holds cultural significance. Additionally, herbal teas and specialty teas have gained popularity among health-conscious consumers in recent years.

South American RTD coffee offerings strike a balance between traditional brewing methods and modern convenience. Local brands are introducing innovative combinations, such as cold brew infused with tropical fruits or traditional recipes with a contemporary twist, creating an exciting blend of flavors that captivate consumers’ taste buds. The convenience, portability, and refreshing nature of RTD coffee products are resonating with busy urban professionals, students, and those seeking a quick pick-me-up during their daily routines.

While coffee remains dominant in South America, the growing interest in alternative and healthier beverage options, including tea, has contributed to the emergence of the RTD Tea market in the region. This presents an opportunity for brands to tap into the evolving consumer preferences and offer RTD tea products that cater to the diverse tastes of South American consumers.

Source: Digital Journal