Ready-to-Drink (RTD) Coffee & Tea - Lesotho

The Ready-to-Drink (RTD) Coffee & Tea market in Lesotho has been experiencing significant growth in recent years.

Customer preferences: Lesotho, like many other countries in the region, has seen a shift in consumer preferences towards convenience and on-the-go products. This has led to an increased demand for ready-to-drink beverages such as coffee and tea. Consumers in Lesotho are increasingly looking for quick and easy options that can be consumed on-the-go, without the need for preparation or brewing.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Lesotho is the growing popularity of iced coffee and tea. The hot climate in the country has contributed to the rise in demand for refreshing and chilled beverages. Consumers are increasingly opting for iced coffee and tea as a way to cool down and stay hydrated. This trend is also driven by the influence of Western culture and the increasing exposure to international brands and products. Another trend in the market is the emergence of local and artisanal brands. While international brands still dominate the market, there is a growing demand for locally produced and authentic products. Consumers in Lesotho are becoming more conscious of the origin and quality of their beverages, and are willing to pay a premium for products that are made with local ingredients and traditional brewing methods.

Local special circumstances: Lesotho's small population and limited infrastructure pose challenges for the RTD Coffee & Tea market. The market is relatively small compared to other countries in the region, which limits the scale of operations for both local and international brands. Additionally, the lack of a well-developed distribution network in the country makes it difficult for companies to reach consumers in remote areas.

Underlying macroeconomic factors: Lesotho's growing middle class and increasing disposable income are key drivers of the RTD Coffee & Tea market. As more people enter the middle class, they have more purchasing power and are able to afford premium products. This has led to an increase in demand for higher quality and more expensive RTD coffee and tea options. Furthermore, the urbanization and modernization of Lesotho's cities have also contributed to the growth of the market. As more people move to urban areas, there is a greater demand for convenient and on-the-go products. The rise of coffee shops and cafes in urban centers has also helped to popularize RTD coffee and tea among consumers. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Lesotho is developing due to changing customer preferences towards convenience and on-the-go products, the growing popularity of iced coffee and tea, the emergence of local and artisanal brands, as well as the country's growing middle class and increasing disposable income. However, the market faces challenges due to the small population and limited infrastructure in Lesotho.

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.