Ready-to-Drink (RTD) Tea - Kenya

The Ready-to-Drink (RTD) Tea market in Kenya has been experiencing significant growth in recent years. Customer preferences for convenient and healthy beverages, coupled with local special circumstances and underlying macroeconomic factors, have contributed to this development.

Customer preferences: Kenyan consumers have shown a growing preference for ready-to-drink beverages due to their convenience and on-the-go nature. RTD tea offers a refreshing and healthy alternative to carbonated soft drinks, which have been facing increasing scrutiny for their high sugar content. As health-consciousness rises among consumers, there is a growing demand for beverages that are perceived as natural and beneficial to one's well-being.

Trends in the market: One of the key trends in the RTD tea market in Kenya is the introduction of innovative flavors and blends. Manufacturers are constantly exploring new combinations of tea and fruit flavors to cater to the evolving taste preferences of consumers. Additionally, there is a growing demand for organic and herbal RTD teas, as consumers seek out products that are free from artificial additives and preservatives. Another trend in the market is the increasing availability of RTD tea products in various distribution channels. While traditional retail outlets such as supermarkets and convenience stores remain important, there has been a rise in online sales platforms and specialty tea shops. This allows consumers to easily access a wide range of RTD tea options and choose products that align with their preferences.

Local special circumstances: Kenya's tea industry is well-established, with the country being one of the largest tea exporters in the world. This provides a strong foundation for the development of the RTD tea market, as local tea producers have access to high-quality tea leaves. The availability of locally sourced tea allows manufacturers to create unique blends that resonate with Kenyan consumers. Furthermore, Kenya's warm climate makes it an ideal market for refreshing beverages like RTD tea. The hot weather encourages consumers to seek out chilled beverages to quench their thirst, making RTD tea a popular choice.

Underlying macroeconomic factors: Kenya's growing middle class and increasing disposable income have contributed to the growth of the RTD tea market. As consumers have more purchasing power, they are able to afford higher-priced products such as RTD teas. Additionally, urbanization and changing lifestyles have led to a shift in consumer preferences towards convenient and ready-to-consume beverages. In conclusion, the Ready-to-Drink (RTD) Tea market in Kenya is experiencing growth due to customer preferences for convenient and healthy beverages, the introduction of innovative flavors, the availability of RTD tea in various distribution channels, local special circumstances such as the country's tea industry and warm climate, and underlying macroeconomic factors such as a growing middle class and increasing disposable income.

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.