The demand for reduced sugar beverages in Australia has steadily risen over recent years, experiencing a notable surge during and since the pandemic, as consumers have increasingly prioritised health-conscious choices. This drive towards sugar reduction has substantially expanded the range of reduced sugar variants available across the spectrum of soft drinks, spanning from tonic water to energy drinks.
Following a prolonged period of rapid double-digit off-trade volume expansion, carbonated RTD tea and kombucha is entering a more mature phase, marked by slower growth, brand exits, and heightened competition from other soft drinks categories. Kombucha greatly benefited from the escalating demand for reduced sugar beverages in the Australian market, driven by a growing consumer inclination towards sugar-free options.
Kombucha has played a pivotal role in driving growth within RTD tea for a number of years. However, even as this category matures and its growth rates level off, there remains ample room for further development and innovation within the broader RTD tea category.
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RTD Tea
This category includes all packaged products based on brewed tea or tea extract. May be sweetened or unsweetened, carbonated or still, with a wide variety of different flavourings. May contain juice.
See All of Our DefinitionsThis report originates from Passport, our RTD Tea research and analysis database.
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