Soft Drinks - Tanzania

The Soft Drinks market in Tanzania is experiencing significant growth and development.

Customer preferences: Tanzanian consumers have shown a growing preference for soft drinks, particularly carbonated beverages and fruit juices. This can be attributed to changing lifestyles, increasing disposable incomes, and a desire for convenience. Soft drinks are seen as refreshing and convenient options for quenching thirst and providing a quick energy boost.

Trends in the market: One of the key trends in the Tanzanian soft drinks market is the increasing demand for healthier options. Consumers are becoming more health-conscious and are seeking beverages that are low in sugar, natural, and free from artificial additives. This trend is driving the growth of categories such as bottled water, herbal drinks, and natural fruit juices. Another trend in the market is the rising popularity of local and regional soft drink brands. Tanzanian consumers are showing a preference for products that are locally produced, as they believe it supports the local economy and ensures product freshness. This trend has created opportunities for local soft drink manufacturers to expand their market share and compete with international brands.

Local special circumstances: Tanzania's young and growing population is a key factor driving the growth of the soft drinks market. With a median age of 18. 7 years, the country has a large consumer base that is more inclined towards beverages that cater to their tastes and preferences. Additionally, the urbanization rate in Tanzania is increasing, leading to higher demand for convenience products such as soft drinks.

Underlying macroeconomic factors: The Tanzanian economy has been experiencing steady economic growth, which has positively impacted consumer spending power. Rising disposable incomes have allowed consumers to spend more on non-essential items such as soft drinks. Furthermore, the government's efforts to improve infrastructure and create a conducive business environment have attracted foreign investment in the soft drinks industry, leading to increased competition and product innovation. In conclusion, the Soft Drinks market in Tanzania is witnessing growth and development driven by changing consumer preferences, the demand for healthier options, the popularity of local brands, a young and growing population, and favorable macroeconomic factors.

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.