Soft Drinks - Rwanda

The Soft Drinks market in Rwanda has been experiencing significant growth in recent years.

Customer preferences: Rwandan consumers have shown a growing preference for soft drinks, particularly carbonated beverages and fruit-based drinks. This can be attributed to the increasing urbanization and westernization of the country, which has led to a shift in consumer preferences towards more modern and convenient beverage options. Additionally, the hot climate in Rwanda makes soft drinks a popular choice among consumers as a refreshing and thirst-quenching beverage.

Trends in the market: One of the key trends in the Soft Drinks market in Rwanda is the increasing demand for healthier and natural beverages. As consumers become more health-conscious, there is a growing preference for beverages that are low in sugar and free from artificial additives. This has led to the introduction of a wide range of natural and organic soft drinks in the market, including fruit-infused waters and herbal teas. Another trend in the Soft Drinks market in Rwanda is the rising popularity of ready-to-drink (RTD) beverages. These pre-packaged drinks offer convenience to consumers who are constantly on the go and do not have the time to prepare their own beverages. RTD soft drinks are available in various flavors and sizes, catering to the diverse preferences of consumers.

Local special circumstances: Rwanda's growing middle class and increasing disposable income have contributed to the growth of the Soft Drinks market. As more Rwandans have the means to afford soft drinks, the demand for these beverages has risen. Additionally, the government's efforts to promote tourism and attract foreign investment have also played a role in the growth of the Soft Drinks market, as tourists and expatriates contribute to the demand for soft drinks in the country.

Underlying macroeconomic factors: The economic stability and steady GDP growth in Rwanda have created a favorable environment for the Soft Drinks market to thrive. The country's strong economic performance has attracted foreign investors, leading to increased competition and innovation in the market. Furthermore, the government's investment in infrastructure development, such as road networks and electricity supply, has improved the distribution and availability of soft drinks across the country. In conclusion, the Soft Drinks market in Rwanda is experiencing significant growth due to changing customer preferences, including a preference for healthier and natural beverages, as well as the increasing demand for ready-to-drink options. The growing middle class and rising disposable income, along with the government's efforts to promote tourism and attract foreign investment, have also contributed to the expansion of the market. The economic stability and infrastructure development in Rwanda have created a favorable environment for the Soft Drinks market to flourish.

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.