Soft Drinks - Central Africa

The Soft Drinks market in Central Africa has been experiencing significant growth in recent years, driven by changing customer preferences and underlying macroeconomic factors. Customer preferences in the region have shifted towards healthier beverage options, with consumers becoming more conscious about the impact of sugary drinks on their health. This has led to an increased demand for low-sugar or sugar-free soft drinks, as well as natural and organic alternatives. Additionally, consumers are also looking for functional beverages that offer added health benefits, such as energy drinks or drinks with vitamins and minerals. Trends in the market reflect these changing preferences, with a rise in the availability and popularity of healthier soft drink options. Many major soft drink companies have introduced new product lines that cater to these trends, offering a wider range of low-sugar or sugar-free options. In addition, there has been an increase in the number of local and regional players entering the market, offering unique and innovative soft drink products that cater to specific customer preferences. Local special circumstances in Central Africa also play a role in the development of the soft drinks market. The region has a young and growing population, with a rising middle class and increasing urbanization. This has resulted in higher disposable incomes and a greater willingness to spend on non-essential items such as soft drinks. Additionally, the hot and humid climate in many parts of Central Africa makes soft drinks a popular choice for hydration and refreshment. Underlying macroeconomic factors further contribute to the growth of the soft drinks market in Central Africa. Economic stability and increasing GDP per capita have led to higher consumer spending power, allowing more people to afford soft drinks on a regular basis. Furthermore, improvements in infrastructure and distribution networks have made soft drinks more accessible to consumers in remote areas, driving market penetration. In conclusion, the Soft Drinks market in Central Africa is developing in response to changing customer preferences towards healthier options, as well as underlying macroeconomic factors such as rising disposable incomes and improved infrastructure. This has led to an increase in the availability and popularity of low-sugar or sugar-free soft drinks, as well as functional beverages. The region's young and growing population, along with its hot climate, also contribute to 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.