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

The Ready-to-Drink (RTD) Coffee & Tea market in Eastern Africa has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the RTD Coffee & Tea market in Eastern Africa is the changing preferences of consumers. As people become busier and more time-constrained, there is a growing demand for convenient and on-the-go beverage options. RTD Coffee & Tea products offer a quick and easy solution for consumers who want to enjoy their favorite beverages without the hassle of brewing or preparing them at home. Additionally, the younger generation in Eastern Africa is increasingly embracing Western lifestyles and habits, including the consumption of RTD Coffee & Tea products.

Trends in the market: The RTD Coffee & Tea market in Eastern Africa is witnessing several key trends. Firstly, there is a growing preference for healthier and natural ingredients among consumers. As a result, there has been an increase in the demand for RTD Coffee & Tea products that are made with organic and natural ingredients. This trend is driven by the rising awareness of health and wellness, as well as the desire for products that are perceived to be more sustainable and environmentally friendly. Another trend in the market is the introduction of innovative flavors and packaging formats. Manufacturers are constantly launching new and unique flavors to cater to the diverse taste preferences of consumers. Additionally, they are also experimenting with different packaging formats, such as cans and bottles, to attract consumers and enhance the overall experience of consuming RTD Coffee & Tea products.

Local special circumstances: Eastern Africa has a rich coffee and tea culture, which has contributed to the growth of the RTD Coffee & Tea market in the region. Countries like Ethiopia and Kenya are known for their high-quality coffee beans, and consumers in the region have a strong affinity for coffee. This cultural preference for coffee has translated into a growing demand for RTD Coffee products in Eastern Africa. Furthermore, the increasing urbanization and rising disposable incomes in the region have also played a role in the growth of the RTD Coffee & Tea market. As more people move to cities and experience higher incomes, they are willing to spend more on convenience products like RTD Coffee & Tea.

Underlying macroeconomic factors: The growth of the RTD Coffee & Tea market in Eastern Africa can be attributed to several underlying macroeconomic factors. Firstly, the region has been experiencing steady economic growth, which has resulted in an expansion of the middle class. This has created a larger consumer base with higher purchasing power, driving the demand for RTD Coffee & Tea products. Additionally, the increasing urbanization and changing lifestyles in Eastern Africa have also contributed to the growth of the market. As more people move to cities and adopt fast-paced lifestyles, they are seeking convenient and on-the-go beverage options, which has fueled the demand for RTD Coffee & Tea products. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Eastern Africa is growing due to changing customer preferences, including the desire for convenience and on-the-go options. The market is also witnessing trends such as the demand for healthier and natural ingredients, as well as the introduction of innovative flavors and packaging formats. The region's rich coffee and tea culture, along with the increasing urbanization and rising disposable incomes, are driving the growth of the market. The underlying macroeconomic factors, including steady economic growth and changing lifestyles, are also contributing to the expansion of the RTD Coffee & Tea market in Eastern Africa.

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.