Soft Drinks - Ethiopia

The Soft Drinks market in Ethiopia has been experiencing significant growth in recent years. Customer preferences have shifted towards healthier beverage options, leading to increased demand for natural and low-sugar soft drinks. Additionally, the growing population and rising disposable incomes have contributed to the expansion of the market.

Customer preferences: Ethiopian consumers are increasingly seeking healthier beverage options, which has led to a shift in customer preferences within the Soft Drinks market. There is a growing demand for natural and low-sugar soft drinks, as consumers are becoming more health-conscious and are actively seeking beverages that align with their dietary preferences. This trend is in line with global consumer preferences, as people worldwide are becoming more conscious of the impact of their food and beverage choices on their health.

Trends in the market: One of the key trends in the Soft Drinks market in Ethiopia is the increasing popularity of locally produced beverages. Ethiopian consumers are showing a preference for domestic brands, as they are seen as more authentic and supportive of the local economy. This trend is driven by a sense of national pride and a desire to promote local entrepreneurship. As a result, local soft drink manufacturers have been able to gain a significant market share and compete effectively with international brands. Another trend in the market is the rising demand for carbonated soft drinks. Despite the growing preference for healthier options, carbonated soft drinks continue to be popular among Ethiopian consumers. This can be attributed to factors such as affordability, taste preferences, and cultural influences. Carbonated soft drinks are often consumed during social gatherings and celebrations, making them an integral part of the Ethiopian culture.

Local special circumstances: Ethiopia has a large and growing population, which provides a significant consumer base for the Soft Drinks market. The country's population is expected to continue growing in the coming years, which will further drive the demand for soft drinks. Additionally, the rising disposable incomes of Ethiopian consumers have made soft drinks more affordable and accessible to a larger segment of the population.

Underlying macroeconomic factors: The Soft Drinks market in Ethiopia is influenced by several macroeconomic factors. Economic growth and stability play a crucial role in driving consumer spending and overall market growth. As the Ethiopian economy continues to develop, with improvements in infrastructure and increased investment, the Soft Drinks market is expected to expand further. Furthermore, government policies and regulations also impact the Soft Drinks market. The Ethiopian government has been implementing measures to promote local manufacturing and reduce dependence on imports. This has created opportunities for local soft drink manufacturers to thrive and has contributed to the growth of the market. In conclusion, the Soft Drinks market in Ethiopia is experiencing growth due to changing customer preferences towards healthier options, the rising population and disposable incomes, and the preference for locally produced beverages. Despite the increasing demand for healthier options, carbonated soft drinks remain popular among Ethiopian consumers. The market is expected to continue growing in the coming years, driven by macroeconomic factors such as economic growth and government policies.

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.