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

Kenya

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$6.62m in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$97.80k in 2024.
Revenue, combined amounts to US$6.71m in 2024.
The revenue, at home is expected to grow annually by 7.64% (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$0.12 are generated in 2024.
In the Ready-to-Drink (RTD) Coffee & Tea market, volume, at home is expected to amount to 2.53m L by 2024.
Volume, out-of-home is expected to amount to 16.66k L in 2024.
Volume, combined is expected to amount to 2.54m L in 2024.
The Ready-to-Drink (RTD) Coffee & Tea market is expected to show a volume growth, at home of 4.0% in 2025.0.
The average volume per person, at home in the Ready-to-Drink (RTD) Coffee & Tea market is expected to amount to 0.04L in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Kenyan consumers have shown a growing preference for convenient and on-the-go beverages, which has contributed to the rising demand for RTD coffee and tea products. The busy lifestyles of urban consumers, coupled with the increasing number of coffee shops and cafes, have created a need for portable and ready-to-consume options. Additionally, the popularity of coffee and tea as social and cultural beverages in Kenya has further fueled the demand for RTD products.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Kenya is the expansion of product offerings. Manufacturers are introducing a wide range of flavors and varieties to cater to the diverse tastes and preferences of consumers. This includes traditional flavors such as black tea and coffee, as well as innovative blends and combinations. Moreover, there is a growing trend towards healthier options, with the introduction of low-sugar and organic variants. Another trend in the market is the increasing availability of RTD coffee and tea products in various retail channels. While coffee shops and cafes remain popular, manufacturers are also targeting supermarkets, convenience stores, and online platforms to reach a wider consumer base. This expansion of distribution channels has made RTD coffee and tea more accessible to consumers across different regions of Kenya.

Local special circumstances: Kenya is known for its high-quality coffee and tea production, which gives the country a competitive advantage in the RTD market. The availability of locally sourced ingredients allows manufacturers to produce authentic and flavorful beverages. This has resonated well with consumers who appreciate the rich and aromatic taste of Kenyan coffee and tea. Furthermore, Kenya has a vibrant coffee culture, with coffee drinking being deeply ingrained in the social fabric of the country. This cultural preference for coffee has created a favorable environment for the growth of the RTD coffee market. Additionally, the popularity of tea ceremonies and the tradition of afternoon tea have contributed to the demand for RTD tea products.

Underlying macroeconomic factors: The growing middle class in Kenya has played a significant role in the development of the RTD Coffee & Tea market. As disposable incomes rise, consumers are willing to spend more on premium and convenience products. This has led to an increased demand for RTD coffee and tea, which are perceived as affordable luxuries. Moreover, the urbanization and modernization of Kenya have created a more fast-paced lifestyle, with consumers seeking convenient and time-saving solutions. RTD coffee and tea products provide a quick and easy way to enjoy their favorite beverages without the need for brewing or preparation. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Kenya is experiencing growth due to the preference for convenient and on-the-go beverages, the expansion of product offerings, the increasing availability of RTD products in various retail channels, the high-quality coffee and tea production in the country, the vibrant coffee culture, and the growing middle class and urbanization.

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.