Ready-to-Drink (RTD) Coffee - Malawi

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

Customer preferences: Consumers in Malawi have shown a growing preference for convenience and on-the-go products, which has contributed to the rise in demand for ready-to-drink coffee. The busy lifestyles of urban consumers, coupled with the increasing popularity of coffee as a beverage choice, have fueled the growth of this market segment.

Trends in the market: One of the key trends driving the growth of the RTD coffee market in Malawi is the increasing availability and variety of products. Local and international coffee companies have introduced a wide range of RTD coffee options, including different flavors, blends, and packaging sizes, to cater to the diverse preferences of consumers. This has not only expanded the choices available to consumers but has also created a competitive market environment. Another trend in the market is the growing popularity of coffee shops and cafes in urban areas. These establishments not only provide consumers with a place to enjoy freshly brewed coffee but also offer a range of RTD coffee options for those on the go. This trend has further contributed to the growth of the RTD coffee market as consumers seek convenience and quality in their coffee choices.

Local special circumstances: Malawi is known for its high-quality coffee beans, which are grown in the country's fertile soils and favorable climate. This has created a strong foundation for the development of the RTD coffee market, as consumers are more inclined to try locally sourced and produced products. The presence of local coffee companies that prioritize sustainability and fair trade practices has also resonated with consumers, further driving the demand for RTD coffee.

Underlying macroeconomic factors: The growth of the RTD coffee market in Malawi can also be attributed to favorable macroeconomic factors. The country has experienced stable economic growth in recent years, leading to an increase in disposable incomes. As a result, consumers have more purchasing power and are willing to spend on premium products such as RTD coffee. Additionally, the expanding middle class in Malawi has contributed to the growth of the market, as this segment of the population is more likely to embrace new food and beverage trends. In conclusion, the Ready-to-Drink (RTD) Coffee market in Malawi is experiencing significant growth due to changing customer preferences, the availability of a wide range of products, the growing popularity of coffee shops, and the country's favorable coffee-growing conditions. These factors, combined with favorable macroeconomic conditions, have created a conducive environment for the development of the RTD coffee market in Malawi.

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.