Soft Drinks - Malawi

The Soft Drinks market in Malawi has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in Malawi have shifted towards healthier beverage options, including low-sugar and natural drinks. This trend is in line with global and regional market trends, as consumers become more health-conscious and seek out products that align with their wellness goals. As a result, there has been a growing demand for fruit juices, flavored water, and herbal teas in the country. Customers are also increasingly looking for convenience and portability in their beverage choices, leading to a rise in the consumption of ready-to-drink products. In addition to changing customer preferences, there are several local special circumstances that have contributed to the development of the Soft Drinks market in Malawi. One such circumstance is the hot and humid climate in the country, which creates a high demand for refreshing and hydrating beverages. Soft drinks, particularly carbonated beverages, are popular choices among consumers to quench their thirst and provide a cooling effect. Furthermore, the growing urbanization and increasing disposable income in Malawi have led to a rise in consumer spending on non-alcoholic beverages. The Soft Drinks market in Malawi is also influenced by underlying macroeconomic factors. Economic stability and steady GDP growth have contributed to an increase in consumer purchasing power, allowing more people to afford soft drinks. Furthermore, the government's efforts to improve infrastructure and expand access to electricity have boosted the availability and affordability of refrigeration, which has positively impacted the sales of chilled soft drinks. Additionally, the country's growing tourism industry has created opportunities for soft drink manufacturers to cater to the needs of both domestic and international tourists. In conclusion, the Soft Drinks market in Malawi is developing in response to changing customer preferences, local special circumstances, and underlying macroeconomic factors. As consumers in the country prioritize healthier and more convenient beverage options, there has been a growing demand for low-sugar and natural drinks. The hot climate, urbanization, and increasing disposable income further contribute to the development of the market. Economic stability, infrastructure development, and the growth of the tourism industry also play a significant role in driving the growth of the Soft Drinks 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.