Whilst the mandated closure of cafés, restaurants and other foodservice establishments led to a steep decline in on-trade volume sales of RTD tea in the United Arab Emirates in 2020, off-trade volume sales declined as a consequence of the rising health awareness. Due to the sugar content associated with RTD tea, consumers in the United Arab Emirates have been opting more and more for soft drinks that are perceived as healthier such as bottled water and 100% juice. The significant growth in…

Although off-trade volume sales of RTD tea saw increased, albeit marginal, growth in 2020, on-trade sales were negatively affected by the widespread foodservice closures during the COVID-19 pandemic, and although some on-trade volume growth was still recorded, it was nevertheless half that seen in the previous year of the review period. On-trade sales, however, account for only a small percentage of overall sales in RTD tea.

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In 2020, off-trade volume sales in off-trade RTD tea remained positive as retail channels remained open during lockdown and extended their operating hours to accommodate the influx of customers during curfew hours, normally from 0600-1400hrs or 0600-1500hrs. On-trade volume sales, however, declined sharply due to foodservice closures and the absence of the option of RTD Tea of brands on e-commerce platforms.

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While RTD coffee on-trade volume sales remained negligible in the United Arab Emirates in 2020, off-trade volume sales declined as a consequence of the growing tendency among consumers to opt for beverages that are naturally healthy such as bottled water and 100% juice. The significant increase in retail sales in current value terms is merely a result of excise tax of 50% on products with added sugar that was introduced at the beginning of 2020 which led to a significant increase in prices…