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

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

Customer preferences: Zambian consumers have shown a growing preference for convenient and on-the-go beverages, which has contributed to the increasing popularity of the RTD Coffee & Tea market. The busy lifestyles of urban consumers, coupled with the desire for a quick and refreshing beverage option, have driven the demand for ready-to-drink products.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Zambia is the rising popularity of iced coffee and tea beverages. The hot climate in the country makes these chilled drinks particularly appealing to consumers, especially during the summer months. The convenience of ready-to-drink options has made it easier for consumers to enjoy their favorite coffee and tea flavors without the need for brewing or steeping. Another trend in the market is the increasing demand for healthier and natural ingredients. Consumers in Zambia are becoming more health-conscious and are seeking products that are free from artificial additives and preservatives. This has led to the emergence of RTD Coffee & Tea products that are made with natural ingredients and have reduced sugar content.

Local special circumstances: Zambia's growing middle class has played a significant role in driving the demand for RTD Coffee & Tea products. As disposable incomes rise, consumers are willing to spend more on convenient and premium beverages. This has created opportunities for both local and international brands to enter the market and offer a wide range of RTD Coffee & Tea options.

Underlying macroeconomic factors: The growing economy of Zambia has contributed to the development of the RTD Coffee & Tea market. As the country's GDP continues to rise, consumers have more purchasing power to spend on non-essential items such as beverages. Additionally, the increasing urbanization and modernization of cities in Zambia have created a favorable environment for the growth of the RTD Coffee & Tea market. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Zambia is experiencing significant growth due to changing customer preferences, including a preference for convenient and on-the-go beverages. The market is also influenced by trends such as the popularity of iced coffee and tea beverages and the demand for healthier and natural ingredients. The growing middle class and the overall economic development of Zambia are key factors driving the growth of the market.

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.