Ready-to-Drink (RTD) Coffee & Tea - Africa

Africa

Highlights

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Ready-to-Drink (RTD) Coffee & Tea market amounts to US$460.10m in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$30.25m in 2024.
Revenue, combined amounts to US$490.40m in 2024.
The revenue, at home is expected to grow annually by 12.13% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated Japan (US$32bn in 2024).
In relation to total population figures, the average revenue per capita, at home of US$0.35 are generated in 2024.
In the Ready-to-Drink (RTD) Coffee & Tea market, volume, at home is expected to amount to 222.70m L by 2024.
Volume, out-of-home is expected to amount to 7.26m L in 2024.
Volume, combined is expected to amount to 229.90m L in 2024.
The Ready-to-Drink (RTD) Coffee & Tea market is expected to show a volume growth, at home of 4.1% in 2025.0.
The average volume per person, at home in the Ready-to-Drink (RTD) Coffee & Tea market is expected to amount to 0.17L in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Ready-to-Drink (RTD) Coffee & Tea market in Africa is experiencing significant growth and development.

Customer preferences: A growing number of consumers in Africa are opting for convenience and on-the-go products, which has led to an increased demand for Ready-to-Drink (RTD) Coffee & Tea. These beverages offer a quick and easy solution for busy individuals who want to enjoy their favorite coffee or tea flavors without the need for brewing or preparation. Additionally, the younger generation in Africa is increasingly embracing Western lifestyles and habits, including the consumption of RTD beverages.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Africa is the introduction of innovative flavors and blends. Manufacturers are constantly experimenting with new flavors and ingredients to cater to the diverse taste preferences of African consumers. This includes unique combinations such as coffee with flavors like chocolate, caramel, and vanilla, as well as tea with fruity or floral notes. These innovative flavors are attracting new consumers and driving the growth of the market. Another trend in the market is the rising popularity of healthier options. With the increasing focus on health and wellness, consumers in Africa are seeking beverages that are low in sugar, calories, and artificial additives. As a result, manufacturers are launching RTD Coffee & Tea products that are made with natural ingredients, organic tea leaves, and sweeteners like stevia. These healthier options are resonating well with health-conscious consumers and driving the growth of this segment.

Local special circumstances: Africa is a diverse continent with different cultural preferences and consumption habits. In some countries, traditional tea is deeply rooted in the culture and is consumed on a daily basis. However, in other countries, coffee is more popular and is considered a social drink. These local preferences and habits influence the demand for RTD Coffee & Tea in different African countries. Furthermore, the availability and accessibility of RTD Coffee & Tea products vary across Africa. In urban areas, where there is a higher concentration of modern retail outlets and convenience stores, these products are more readily available. However, in rural areas, where traditional markets and informal vendors are more prevalent, the availability of RTD Coffee & Tea may be limited. This disparity in access to RTD beverages impacts the growth potential of the market in different regions of Africa.

Underlying macroeconomic factors: The economic growth and urbanization in Africa are driving the development of the RTD Coffee & Tea market. As more people move to urban areas and join the workforce, there is an increasing demand for convenient and on-the-go products. Additionally, the rising disposable incomes in Africa allow consumers to afford premium RTD Coffee & Tea products, contributing to the growth of the market. Furthermore, the expanding middle class in Africa is also a key driver of the RTD Coffee & Tea market. As more people enter the middle-income bracket, they have more discretionary income to spend on non-essential items, including beverages. This growing middle class is becoming more brand-conscious and is willing to pay a premium for high-quality RTD Coffee & Tea products. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Africa is witnessing significant growth and development. This can be attributed to changing customer preferences for convenience and on-the-go products, the introduction of innovative flavors and healthier options, as well as the underlying macroeconomic factors such as economic growth, urbanization, and the expanding middle class. However, it is important to consider the local special circumstances and diverse consumption habits across different African countries when analyzing the market trends and potential.

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.