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

The Ready-to-Drink (RTD) Coffee & Tea market in Botswana has seen significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Botswana has experienced a shift in consumer preferences towards convenience and on-the-go consumption, which has fueled the demand for ready-to-drink coffee and tea. Busy lifestyles and the need for quick and easy refreshments have led consumers to opt for these products as a convenient alternative to traditional hot beverages. The younger generation, in particular, has shown a preference for ready-to-drink options due to their convenience and trendy image.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Botswana is the increasing popularity of flavored and functional beverages. Consumers are seeking unique and innovative flavors, such as caramel, vanilla, and matcha, which provide a more exciting and indulgent drinking experience. Additionally, there is a growing demand for functional beverages that offer health benefits, such as energy-boosting properties or stress relief. Manufacturers are responding to these trends by introducing new and innovative products that cater to these preferences. Another trend in the market is the rising demand for premium and artisanal products. Consumers are willing to pay a premium for high-quality and authentic beverages that are made with natural ingredients and traditional brewing methods. This trend is driven by the desire for a more sophisticated and elevated drinking experience, as well as the growing awareness of the health benefits associated with natural and organic products.

Local special circumstances: Botswana's growing urbanization and increasing disposable income levels have contributed to the growth of the RTD Coffee & Tea market. As more people move to cities and adopt a fast-paced lifestyle, the demand for convenient and ready-to-drink beverages has surged. Additionally, the rising middle class in Botswana has more disposable income to spend on indulgent and premium products, further driving the growth of the market.

Underlying macroeconomic factors: The economic stability and steady GDP growth in Botswana have created a favorable environment for the RTD Coffee & Tea market to thrive. The country's stable political climate, well-developed infrastructure, and growing tourism industry have attracted foreign investment and supported the expansion of the market. Furthermore, Botswana's membership in regional trade agreements, such as the Southern African Development Community (SADC), has facilitated the importation of raw materials and ingredients, allowing manufacturers to produce a wider range of products to meet consumer demand. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Botswana is experiencing growth due to changing customer preferences towards convenience and on-the-go consumption. The demand for flavored and functional beverages, as well as premium and artisanal products, is driving innovation in the market. Local special circumstances, such as urbanization and increasing disposable income levels, are also contributing to the growth. The country's economic stability and favorable business environment further support the expansion of the market.

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.