Bottled Water - Zambia

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

Customer preferences: Zambian consumers have shown a growing preference for bottled water over other beverages. This can be attributed to several factors. Firstly, there is a rising awareness among consumers about the importance of staying hydrated and maintaining good health. Bottled water is seen as a convenient and safe option for meeting their daily hydration needs. Additionally, the increasing urbanization and busy lifestyles have led to a shift in consumer behavior, with more people opting for on-the-go and ready-to-drink products like bottled water.

Trends in the market: One of the key trends in the bottled water market in Zambia is the growing demand for flavored and functional waters. Consumers are seeking variety and are willing to explore different flavors and added benefits in their bottled water choices. This trend is in line with the global market, where flavored and functional waters have gained popularity in recent years. In response to this trend, manufacturers in Zambia are introducing new products with innovative flavors and added nutrients to cater to the evolving consumer preferences. Another trend in the market is the increasing focus on sustainability. Consumers are becoming more conscious of the environmental impact of single-use plastic bottles and are seeking alternatives. As a result, there is a growing demand for bottled water brands that use eco-friendly packaging materials and promote recycling. Some companies have started offering bottled water in biodegradable or recyclable containers, which has resonated well with environmentally-conscious consumers.

Local special circumstances: Zambia's bottled water market is unique due to its geographical location and climate. The country experiences hot and dry weather conditions for a significant part of the year, which increases the demand for bottled water. The need for hydration is particularly high during the summer months when temperatures can reach extreme levels. This local special circumstance has contributed to the steady growth of the bottled water market in Zambia.

Underlying macroeconomic factors: The growth of the bottled water market in Zambia can also be attributed to favorable macroeconomic factors. The country has witnessed a steady economic growth in recent years, which has resulted in an increase in disposable income levels. As a result, consumers have more purchasing power to spend on discretionary items like bottled water. Additionally, the improving infrastructure and expanding retail sector in Zambia have made bottled water more accessible to consumers across the country. In conclusion, the bottled water market in Zambia is developing due to changing customer preferences, including a growing awareness of health and convenience. The market is also influenced by global trends such as the demand for flavored and functional waters and the focus on sustainability. Local special circumstances, such as the hot and dry climate, further drive the demand for bottled water. Favorable macroeconomic factors, including economic growth and increasing disposable income levels, have also contributed to the market's development.

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.