Soft Drinks - Zimbabwe

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

Customer preferences: One of the main reasons for this growth is the changing customer preferences in Zimbabwe. Consumers are increasingly looking for healthier beverage options, and this has led to a rise in demand for low-sugar and natural soft drinks. This trend is in line with the global shift towards healthier lifestyles and the growing awareness of the negative health effects of sugary drinks. As a result, soft drink companies in Zimbabwe have been introducing new products that cater to these changing preferences, such as natural fruit juices and low-calorie sodas.

Trends in the market: Another trend in the Soft Drinks market in Zimbabwe is the increasing popularity of local and regional brands. Zimbabwean consumers are showing a preference for locally produced soft drinks, as they are seen as more authentic and supportive of the local economy. This trend is not unique to Zimbabwe, as consumers worldwide are increasingly favoring local and artisanal products over global brands. Soft drink companies in Zimbabwe have capitalized on this trend by promoting their products as being made with locally sourced ingredients and supporting local farmers.

Local special circumstances: Zimbabwe has also experienced some unique circumstances that have influenced the Soft Drinks market. One of these is the country's economic challenges, which have resulted in a decline in purchasing power for many consumers. As a result, there has been a shift towards more affordable soft drink options, such as economy-sized bottles and cheaper brands. Soft drink companies have responded to this by offering more affordable products and packaging sizes to cater to the needs of the price-sensitive consumers.

Underlying macroeconomic factors: The Soft Drinks market in Zimbabwe has also been influenced by macroeconomic factors. The country has seen some improvements in its economic stability in recent years, which has led to an increase in consumer spending power. This has contributed to the growth of the Soft Drinks market, as consumers are now able to afford more discretionary purchases, including soft drinks. Additionally, the government has implemented policies to attract foreign investment and promote economic growth, which has created opportunities for soft drink companies to expand their operations in Zimbabwe. In conclusion, the Soft Drinks market in Zimbabwe is experiencing growth due to changing customer preferences, including a shift towards healthier options and a preference for local brands. Local special circumstances, such as economic challenges, have also influenced the market. Overall, the improving macroeconomic conditions in Zimbabwe have contributed to the growth of the Soft Drinks 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.