Ready-to-Drink (RTD) Coffee - Kuwait

The Ready-to-Drink (RTD) Coffee market in Kuwait has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development.

Customer preferences: Kuwaiti consumers have shown a growing preference for convenience and on-the-go products, which has fueled the demand for RTD coffee. The fast-paced lifestyle and increasing urbanization in Kuwait have led to a higher demand for ready-to-consume beverages that can be easily consumed while commuting or at work. RTD coffee provides a convenient solution for busy individuals who want a quick caffeine fix without the need for brewing or preparation.

Trends in the market: The RTD coffee market in Kuwait has witnessed a surge in product innovation and variety. Manufacturers have introduced a wide range of flavors, including traditional coffee flavors as well as unique and exotic options. This has attracted a broader consumer base and contributed to the overall growth of the market. Additionally, there has been a shift towards healthier options in the RTD coffee segment, with the introduction of low-sugar and organic variants. This trend reflects the increasing health consciousness among consumers and their desire for healthier beverage choices.

Local special circumstances: Kuwait has a strong coffee culture, with coffee being an integral part of social gatherings and hospitality. The popularity of coffee shops and cafes in Kuwait has influenced the demand for RTD coffee. Consumers who enjoy the taste and experience of coffee in cafes are now seeking similar flavors and quality in RTD coffee products. This has prompted manufacturers to focus on creating products that replicate the taste and aroma of freshly brewed coffee.

Underlying macroeconomic factors: The growing disposable income and urbanization in Kuwait have played a significant role in driving the growth of the RTD coffee market. As more individuals have access to higher incomes, they are willing to spend on premium and convenient products like RTD coffee. The increasing number of working professionals and expatriates in Kuwait has also contributed to the rising demand for RTD coffee. These individuals often have busy schedules and rely on quick and convenient beverage options. In conclusion, the Ready-to-Drink (RTD) Coffee market in Kuwait has experienced growth due to customer preferences for convenience, product innovation, and healthier options. The local coffee culture and underlying macroeconomic factors such as disposable income and urbanization have also played a role in shaping the market. As the demand for on-the-go beverages continues to rise, the RTD coffee market in Kuwait is expected to further expand 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.