Soft Drinks - Namibia

The Soft Drinks market in Namibia has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in Namibia have shifted towards healthier beverage options, with a growing demand for low-sugar and natural drinks. This trend is in line with global consumer preferences, as people become more health-conscious and seek out products that align with their wellness goals. As a result, there has been a surge in the consumption of bottled water, fruit juices, and herbal teas, which are perceived as healthier alternatives to traditional carbonated soft drinks. In addition to health considerations, customer preferences in Namibia are also influenced by cultural factors. Namibians have a strong preference for locally produced beverages, supporting domestic brands and products. This preference for local products extends to soft drinks, with Namibian consumers showing a preference for brands that are manufactured within the country. This has led to the growth of local soft drink companies, which have capitalized on this demand by offering a range of locally produced beverages that cater to the tastes and preferences of Namibian consumers. Trends in the Soft Drinks market in Namibia also reflect the local special circumstances of the country. Namibia is a hot and arid country, with high temperatures throughout the year. This climate creates a strong demand for refreshing and hydrating beverages, such as carbonated soft drinks and bottled water. The popularity of these beverages is driven by their ability to quench thirst and provide relief from the heat. Additionally, Namibia has a growing tourism industry, with visitors from around the world seeking out unique and authentic experiences. This has created an opportunity for soft drink companies to develop and market products that cater to the preferences of international tourists, such as exotic fruit flavors and locally inspired beverages. Underlying macroeconomic factors have also played a role in the development of the Soft Drinks market in Namibia. The country has experienced steady economic growth in recent years, resulting in an increase in disposable income and consumer spending. This has allowed Namibian consumers to allocate a larger portion of their budget towards non-essential items, including soft drinks. Furthermore, urbanization and population growth have led to an expansion of the middle class in Namibia, creating a larger consumer base for soft drink companies to target. In conclusion, the Soft Drinks market in Namibia is developing in response to changing customer preferences, local special circumstances, and underlying macroeconomic factors. Namibian consumers are increasingly seeking out healthier and locally produced beverages, while also demanding refreshing and hydrating options to combat the country's hot climate. The growth of the Soft Drinks market in Namibia is also supported by favorable macroeconomic conditions, including economic growth and an expanding middle class.

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.