Tea - Mongolia

The Tea market in Mongolia has been experiencing significant growth in recent years.

Customer preferences: Mongolian consumers have traditionally been avid tea drinkers, with tea being an integral part of their daily lives. The preference for tea over other beverages can be attributed to cultural factors, as well as the perceived health benefits of tea. Mongolians tend to prefer strong and robust flavors, and they often consume tea with milk or butter. In recent years, there has been a growing interest in specialty teas, such as green tea and herbal infusions, as consumers become more health-conscious and seek out unique flavors.

Trends in the market: One of the key trends in the Mongolian tea market is the increasing demand for premium and organic teas. As consumers become more discerning and willing to pay a premium for high-quality products, there has been a rise in the popularity of specialty teas that are sourced from specific regions and produced using traditional methods. This trend is driven by a desire for authenticity and a more personalized tea-drinking experience. Another trend in the Mongolian tea market is the growing popularity of tea as a social beverage. Tea houses and cafes have become popular gathering places for friends and family to relax and socialize. This trend has led to an increase in the consumption of tea outside of the home, as well as the emergence of new tea-based beverages and snacks.

Local special circumstances: Mongolia's unique climate and geography present challenges and opportunities for the tea market. The cold and dry climate makes it difficult to cultivate tea locally, leading to a reliance on imports. However, this also creates an opportunity for tea companies to differentiate themselves by offering a wide variety of imported teas from different regions around the world.

Underlying macroeconomic factors: The growing middle class in Mongolia, coupled with increasing disposable incomes, has contributed to the growth of the tea market. As consumers have more purchasing power, they are able to afford higher-quality teas and are willing to pay a premium for specialty and organic products. Additionally, the influence of Western culture and the rise of urbanization have also played a role in shaping consumer preferences and driving the demand for tea. In conclusion, the Tea market in Mongolia is experiencing growth due to changing consumer preferences, such as the demand for premium and organic teas, as well as the increasing popularity of tea as a social beverage. The unique climate and geography of Mongolia present challenges and opportunities for the tea market, while underlying macroeconomic factors, such as the growing middle class and increasing disposable incomes, are also contributing to its development.

Data coverage:
The data encompasses B2C enterprises. Figures are based on private Household spendings on Hot Drinks. At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments.
In the out-of-home market, the price always refers to the price per kilogram of the beverage consumed, regardless of other components in the finished beverage.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as production data, region, and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Hot Drinks market with a projected steady growth.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.