Bottled Water - Kenya

The Bottled Water market in Kenya has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Customers in Kenya are increasingly opting for bottled water as their preferred choice of beverage. This can be attributed to several factors, including concerns about water safety and quality, convenience, and the perception that bottled water is a healthier alternative to other beverages. Additionally, the rising middle class in Kenya has led to an increase in disposable income, allowing consumers to afford bottled water as a regular part of their daily lives.

Trends in the market: One of the key trends in the bottled water market in Kenya is the growing demand for premium and flavored water. As consumers become more health-conscious, they are willing to pay a premium for bottled water that offers additional benefits such as added vitamins, minerals, or natural flavors. This trend is also driven by the influence of Western culture and the desire to emulate the lifestyles of more affluent countries. Another trend in the market is the increasing popularity of eco-friendly packaging. With growing concerns about plastic pollution and environmental sustainability, consumers are actively seeking out bottled water brands that use recyclable or biodegradable packaging materials. This trend is also influenced by the global movement towards reducing single-use plastic waste.

Local special circumstances: Kenya's bottled water market is unique due to the country's geography and climate. The country experiences periodic droughts, which can lead to water scarcity and contamination. As a result, many consumers rely on bottled water as a safe and reliable source of drinking water. Additionally, the tourism industry in Kenya is a major driver of the bottled water market, as visitors often prefer to drink bottled water to avoid potential health risks associated with tap water.

Underlying macroeconomic factors: The growth of the bottled water market in Kenya can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending power. This has allowed more Kenyans to afford bottled water as a regular part of their daily lives. Secondly, the government has implemented policies and regulations to improve the quality and safety of drinking water in Kenya. However, the implementation and enforcement of these regulations are often inadequate, leading to a lack of trust in tap water and an increased demand for bottled water. In conclusion, the Bottled Water market in Kenya has experienced significant growth in recent years due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The demand for premium and flavored water, as well as eco-friendly packaging, has driven innovation in the market. Additionally, the country's geography and climate, as well as concerns about water safety, have contributed to the increased reliance on bottled water.

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.