Bottled Water - Tanzania

The Bottled Water market in Tanzania has been experiencing significant growth in recent years.

Customer preferences: Customers in Tanzania are increasingly choosing bottled water over tap water due to concerns about the quality and safety of the latter. Bottled water is seen as a convenient and reliable source of clean drinking water, especially in areas where access to clean water is limited. Additionally, the rising middle class in Tanzania has led to an increase in disposable income, allowing consumers to afford bottled water as a premium product.

Trends in the market: One of the key trends in the bottled water market in Tanzania is the growing demand for flavored and functional bottled water. Consumers are seeking more variety and unique flavors in their bottled water choices, and companies are responding by introducing new products to cater to these preferences. Additionally, there is a growing trend towards functional bottled water, such as vitamin-infused or electrolyte-enhanced water, which is seen as a healthier alternative to traditional bottled water. Another trend in the market is the increasing popularity of eco-friendly packaging. Consumers in Tanzania are becoming more conscious of the environmental impact of plastic bottles, and there is a growing demand for bottled water companies to use sustainable packaging materials. This trend is driven by both consumer preferences and government regulations aimed at reducing plastic waste.

Local special circumstances: Tanzania is a country with a high prevalence of waterborne diseases, such as cholera and typhoid. This has contributed to the increased demand for bottled water as a safer alternative to tap water. Additionally, the country has a large rural population with limited access to clean water sources, further driving the demand for bottled water.

Underlying macroeconomic factors: The economic growth in Tanzania has led to an increase in disposable income and a rising middle class. This has resulted in a higher demand for premium products, including bottled water. Additionally, rapid urbanization and population growth in the country have increased the demand for convenient and safe drinking water options, further driving the growth of the bottled water market. In conclusion, the Bottled Water market in Tanzania is experiencing significant growth due to customer preferences for safe and convenient drinking water, the introduction of flavored and functional bottled water, the increasing demand for eco-friendly packaging, and the country's high prevalence of waterborne diseases. These trends are driven by underlying macroeconomic factors such as economic growth, urbanization, and population growth.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

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 GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), 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 Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

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. The market is updated twice a year.