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

The Ready-to-Drink (RTD) Coffee & Tea market in Ethiopia has been experiencing significant growth in recent years. Customer preferences for convenient and on-the-go beverage options have contributed to the increasing demand for RTD coffee and tea products. Additionally, the growing urbanization and changing lifestyles in Ethiopia have also played a role in the development of this market.

Customer preferences: Ethiopian consumers are increasingly seeking convenient and portable beverage options that can be consumed on-the-go. This is driven by the fast-paced urban lifestyle and the need for quick and easy refreshments. RTD coffee and tea products provide a convenient solution for consumers who want to enjoy their favorite beverages without the need for brewing or preparation.

Trends in the market: One of the key trends in the RTD coffee and tea market in Ethiopia is the introduction of innovative flavors and formulations. Manufacturers are constantly launching new products with unique flavor combinations to cater to the evolving taste preferences of consumers. This trend is driven by the desire to offer a wide variety of options and to differentiate products in a competitive market. Another trend in the market is the increasing availability of RTD coffee and tea products in various distribution channels. In addition to traditional retail outlets, these products can now be found in convenience stores, cafes, and even online platforms. This expansion of distribution channels has made RTD coffee and tea more accessible to a larger consumer base, further fueling market growth.

Local special circumstances: Ethiopia is known for its rich coffee culture and history. Coffee is deeply ingrained in the Ethiopian culture and is considered a significant part of social gatherings and ceremonies. This cultural affinity towards coffee has created a favorable environment for the growth of the RTD coffee market in the country. Consumers are open to trying new coffee-based products, including RTD options, as an extension of their coffee consumption habits.

Underlying macroeconomic factors: The economic growth and increasing disposable income in Ethiopia have also contributed to the development of the RTD coffee and tea market. As consumers have more purchasing power, they are willing to spend on convenient and premium beverage options. This has created a demand for higher-quality RTD coffee and tea products that offer a premium experience. Furthermore, the growing urbanization in Ethiopia has led to a shift in consumer preferences and lifestyles. Urban dwellers are more likely to adopt modern and convenient consumption habits, including the consumption of RTD coffee and tea products. The urban population is also more exposed to global trends and influences, which has further fueled the demand for these products. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Ethiopia is experiencing growth due to customer preferences for convenience, the introduction of innovative flavors, the expansion of distribution channels, the cultural affinity towards coffee, and the underlying macroeconomic factors of economic growth and urbanization. As these trends continue to shape the market, it is expected that the RTD coffee and tea market in Ethiopia will continue to grow in the coming years.

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.