Soft Drinks - Madagascar

The Soft Drinks market in Madagascar has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Madagascar have shifted towards healthier and more natural beverages, leading to an increased demand for soft drinks made from natural ingredients and with reduced sugar content. This trend is in line with global consumer preferences for healthier options and is driving the growth of categories such as bottled water, fruit juices, and herbal teas. In addition to healthier options, customers in Madagascar also value convenience and affordability. This has led to a growing demand for ready-to-drink beverages, such as canned and bottled soft drinks, which are easily accessible and affordable for a wide range of consumers. The convenience factor is particularly important in urban areas where busy lifestyles and limited time for meal preparation drive the demand for on-the-go beverages. Trends in the Soft Drinks market in Madagascar are also influenced by global and regional market developments. For example, the growing popularity of functional beverages, such as energy drinks and sports drinks, is also evident in Madagascar. This trend is driven by an increasing focus on health and wellness among consumers, as well as the influence of global brands and marketing campaigns. Local special circumstances, such as the availability of local ingredients and cultural preferences, also play a role in shaping the Soft Drinks market in Madagascar. The country is known for its rich biodiversity and unique flora, which provide opportunities for the development of innovative and locally sourced soft drink products. Additionally, cultural preferences for certain flavors and ingredients, such as tropical fruits and herbal infusions, contribute to the diversity of the market. Underlying macroeconomic factors, including population growth, urbanization, and rising disposable incomes, are driving the overall expansion of the Soft Drinks market in Madagascar. As the population continues to grow and more people move to urban areas, the demand for soft drinks is expected to increase further. Rising disposable incomes also enable consumers to spend more on non-essential items, including beverages, which further fuels market growth. In conclusion, the Soft Drinks market in Madagascar is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for healthier and more natural beverages, convenience, and affordability are driving customer preferences, while global and regional market trends influence product development. Local special circumstances, such as the availability of local ingredients and cultural preferences, contribute to the diversity of the market. Underlying macroeconomic factors, including population growth, urbanization, and rising disposable incomes, are fueling the overall expansion 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.