Soft Drinks - Zambia

The Soft Drinks market in Zambia has seen significant growth and development in recent years. Customer preferences have shifted towards healthier options, leading to an increase in demand for low-sugar and natural ingredient beverages. Additionally, the growing middle class and urbanization in Zambia have contributed to the expansion of the market.

Customer preferences: In line with global trends, Zambian consumers are increasingly seeking healthier beverage options. This shift in preferences can be attributed to a growing awareness of the negative health impacts of sugary drinks. As a result, there has been a rising demand for low-sugar and natural ingredient soft drinks, such as flavored water and fruit-based beverages. This trend is expected to continue as consumers become more health-conscious and prioritize their well-being.

Trends in the market: One notable trend in the Zambian soft drinks market is the increasing popularity of locally sourced and produced beverages. Consumers are showing a preference for products that are made using locally grown fruits and ingredients, as they perceive them to be fresher and more authentic. This trend presents an opportunity for local manufacturers to capitalize on the demand for unique and culturally relevant soft drinks. Another trend in the market is the growing popularity of carbonated water and flavored water. These beverages offer a healthier alternative to traditional carbonated soft drinks, as they contain fewer calories and artificial additives. The convenience of these products, combined with their refreshing taste, has made them a popular choice among consumers, especially in urban areas.

Local special circumstances: Zambia's growing middle class and urbanization have played a significant role in the development of the soft drinks market. As more people move to urban areas and experience an increase in disposable income, they have more purchasing power and are willing to spend on non-essential items such as soft drinks. This has created a favorable market environment for both local and international soft drink manufacturers, leading to increased competition and product innovation.

Underlying macroeconomic factors: The Zambian economy has experienced steady economic growth in recent years, which has positively impacted the soft drinks market. Rising incomes, coupled with a stable inflation rate, have increased consumer spending power and created a favorable environment for market growth. Additionally, the government's efforts to improve infrastructure and attract foreign investment have further contributed to the development of the market. In conclusion, the Soft Drinks market in Zambia has witnessed significant growth and development driven by changing customer preferences, increasing urbanization, and a growing middle class. The demand for healthier options and locally sourced beverages has led to the emergence of new trends in the market. Furthermore, favorable macroeconomic factors have created a conducive environment for market expansion. As the market continues to evolve, it is expected that manufacturers will continue to innovate and cater to the changing needs and preferences of Zambian consumers.

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.