Ready-to-Drink (RTD) Coffee - Kenya

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

Customer preferences: Kenyan consumers are increasingly looking for convenient and on-the-go beverage options. The busy urban lifestyle and the rise of coffee culture have contributed to the growing demand for RTD coffee. Additionally, the younger generation, who are more open to trying new products, have shown a particular interest in RTD coffee.

Trends in the market: One of the key trends in the RTD coffee market in Kenya is the introduction of innovative flavors and formulations. Manufacturers are constantly experimenting with different ingredients and flavors to cater to the diverse taste preferences of consumers. This has led to the emergence of unique and exotic RTD coffee options in the market. Another trend is the growing popularity of cold brew coffee. Cold brew coffee is known for its smoother and less acidic taste compared to traditional hot brewed coffee. This trend aligns with the increasing health consciousness among consumers, as cold brew coffee is often perceived as a healthier alternative to sugary carbonated drinks.

Local special circumstances: Kenya is known for its high-quality coffee beans, which are exported to various countries around the world. This has created a sense of pride among Kenyan consumers, who are often willing to support local brands and products. As a result, there is a growing demand for locally produced RTD coffee in the market.

Underlying macroeconomic factors: The growing middle class in Kenya has contributed to the increasing demand for premium and convenience products, including RTD coffee. Rising disposable incomes and changing lifestyles have made RTD coffee more affordable and accessible to a larger consumer base. Furthermore, the expanding retail sector in Kenya, with the establishment of modern supermarkets and convenience stores, has provided a platform for RTD coffee brands to reach a wider audience. The availability of RTD coffee in these retail outlets has made it more convenient for consumers to purchase and consume on-the-go. In conclusion, the Ready-to-Drink (RTD) Coffee market in Kenya is witnessing significant growth due to changing consumer preferences, the introduction of innovative flavors, the popularity of cold brew coffee, and the support for local brands. These trends are driven by the growing middle class, rising disposable incomes, and the expanding retail sector in the country.

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.