Soft Drinks - Kenya

The Soft Drinks market in Kenya has been experiencing significant growth in recent years, driven by changing consumer preferences and local special circumstances. Customer preferences in the Soft Drinks market in Kenya have shifted towards healthier options, with consumers increasingly seeking out low-sugar and natural ingredients. This trend is in line with global market developments, as consumers around the world are becoming more health-conscious and looking for alternatives to traditional sugary beverages. As a result, we have seen a rise in the demand for bottled water, fruit juices, and functional beverages in Kenya. Trends in the market also indicate a growing preference for locally produced soft drinks. Kenyan consumers are increasingly supporting local brands, as they value products that are made in their own country and contribute to the local economy. This trend is not unique to Kenya, as consumers worldwide are showing a preference for locally sourced and produced products. Local special circumstances in Kenya have also contributed to the growth of the Soft Drinks market. The country has a young and growing population, with a significant proportion of the population being under the age of 30. This demographic trend has created a large consumer base for soft drinks, as young people tend to be heavy consumers of beverages. Additionally, Kenya has a thriving tourism industry, attracting both domestic and international tourists. This has created a demand for soft drinks in hotels, restaurants, and other hospitality establishments. Underlying macroeconomic factors have also played a role in the development of the Soft Drinks market in Kenya. The country has experienced steady economic growth in recent years, leading to an increase in disposable incomes. As a result, consumers have more purchasing power and are able to afford soft drinks as part of their regular consumption. Furthermore, urbanization and the growth of the middle class have contributed to the expansion of the market, as more people have access to modern retail channels and a wider range of soft drink options. In conclusion, the Soft Drinks market in Kenya is experiencing growth due to changing customer preferences towards healthier options, a preference for locally produced products, local special circumstances such as a young population and a thriving tourism industry, as well as underlying macroeconomic factors such as economic growth and urbanization. These factors are driving the development of the market and shaping the trends in the Soft Drinks industry in Kenya.

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.