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

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

Customer preferences: Tanzanian consumers have shown a growing preference for convenience and on-the-go products, which has contributed to the increasing popularity of RTD Coffee & Tea in the country. The busy lifestyles of urban consumers, coupled with the desire for quick and easy refreshment options, have driven the demand for ready-to-drink beverages. Additionally, the younger population in Tanzania, who are more open to trying new and innovative products, have also embraced RTD Coffee & Tea as a trendy and convenient beverage choice.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Tanzania is the growing demand for healthier options. Consumers are becoming more health-conscious and are seeking beverages that offer functional benefits, such as natural ingredients, low sugar content, and added vitamins or antioxidants. As a result, companies in the market are increasingly focusing on developing and promoting healthier RTD Coffee & Tea products to cater to this demand. Another trend observed in the market is the rise of local and artisanal brands. Tanzanian consumers are showing a preference for locally produced products, as they perceive them to be more authentic and of higher quality. This has created opportunities for local coffee and tea producers to enter the RTD market and offer unique flavors and blends that cater to the local taste preferences.

Local special circumstances: Tanzania is known for its rich coffee and tea production, making it a natural fit for the RTD Coffee & Tea market. The country has a long-standing tradition of coffee and tea consumption, and Tanzanian coffee and tea are highly regarded both domestically and internationally. This gives the RTD Coffee & Tea market in Tanzania a unique advantage, as consumers are already familiar with and have a preference for these beverages. Furthermore, Tanzania has a growing middle class and an expanding urban population, which provides a strong consumer base for RTD Coffee & Tea products. The urbanization trend has led to an increase in disposable incomes and a shift towards a more modern and convenience-oriented lifestyle, driving the demand for ready-to-drink beverages.

Underlying macroeconomic factors: The economic stability and positive GDP growth in Tanzania have played a significant role in the development of the RTD Coffee & Tea market. A stable economy provides consumers with more purchasing power and confidence to spend on non-essential items such as RTD beverages. Additionally, the government's efforts to improve infrastructure and promote investment in the country have contributed to the growth of the market by creating a more favorable business environment for companies operating in the RTD sector. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Tanzania is experiencing growth due to the preferences of Tanzanian consumers for convenience and on-the-go products, the rising demand for healthier options, the emergence of local and artisanal brands, the country's rich coffee and tea production, the growing middle class and urban population, and the stable macroeconomic factors in Tanzania.

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.