Ready-to-Drink (RTD) Coffee - Zambia

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

Customer preferences: Zambian consumers have shown a growing preference for convenience and on-the-go products, which has contributed to the increasing popularity of RTD coffee. The busy lifestyles of urban consumers in particular have led to a greater demand for ready-to-drink beverages that can be easily consumed without the need for preparation or brewing. Additionally, the younger population in Zambia, who are more open to trying new and innovative products, have embraced RTD coffee as a trendy and convenient beverage option.

Trends in the market: One of the key trends in the RTD coffee market in Zambia is the introduction of new flavors and variants. Manufacturers have been quick to respond to the changing tastes and preferences of consumers by offering a wide range of flavors, including traditional coffee flavors as well as more unique and exotic options. This has helped to attract a larger consumer base and drive sales growth in the market. Another trend in the market is the increasing availability of RTD coffee in various retail channels. While initially limited to select supermarkets and convenience stores, RTD coffee can now be found in a wide range of outlets, including cafes, restaurants, and even vending machines. This increased accessibility has made it easier for consumers to purchase and enjoy RTD coffee, further fueling market growth.

Local special circumstances: Zambia's coffee culture is still developing, with traditional brewed coffee being more popular than RTD coffee. However, the convenience and portability of RTD coffee have made it an attractive option for consumers who are always on the go. Additionally, the relatively low price point of RTD coffee compared to specialty coffee beverages has made it more affordable and accessible to a wider range of consumers.

Underlying macroeconomic factors: Zambia's growing economy and rising disposable incomes have played a significant role in the development of the RTD coffee market. As consumers have more purchasing power, they are able to indulge in premium and convenience products like RTD coffee. Furthermore, the increasing urbanization and Westernization of Zambian society have also contributed to the growth of the RTD coffee market, as consumers are exposed to global trends and are more open to trying new products.

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.