Hot drinks in 2024: The big picture
Overall, hot drinks in Kenya registered healthy current value and volume growth in 2024, with a growing economy, as well as continuing growing population, supporting sales.
2024 key trends
While inflation eased in 2024, consumers continued to price sensitive after several years of price hikes. This led to a degree of trading down and also some growth in private label, though from a low base.
Competitive landscape
Kenya Tea Packers Ltd (Ketepa) remained the top company in Kenyan hot drinks in retail value sales terms by a substantial margin in 2024. This was due to its commanding lead in tea, specifically black tea, where its Fahari ya Kenya brand enjoys high levels of recognition and loyalty among local consumers.
Retailing developments
Supermarkets continue to dominate the retail landscape for hot drinks in Kenya, due to their vast product range and competitive pricing. That being said, small local grocers also play a crucial role, especially in rural areas, where they cater to lower-income consumers, with sachets in particular being very popular.
Foodservice vs retail split
In 2024, the retail sector continued to account for the majority of value sales of hot drinks in Kenya, although foodservice channels are gaining ground, particularly for coffee. Growth of foodservice sales is driven by urbanisation and the continuing expansion of coffee shops and tea houses.
What next for hot drinks?
There will be moderate constant value and volume growth over the forecast period. The economy will see further growth, though the high debt levels also bring a high degree of uncertainty.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Kenya with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks industry in Kenya, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in Kenya report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Hot Drinks in Kenya?
- To what extent are health considerations impacting consumption of Hot Drinks in Kenya?
- What are the traditional preferences in Hot Drinks in Kenya? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in Kenya?
- Which are the leading brands in Hot Drinks in Kenya?
- How are products distributed in Hot Drinks in Kenya?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in Kenya
Hot drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
Coffee in Kenya
KEY DATA FINDINGS
Healthy current value and volume growth
Competitive landscape is stable
Some growth of private label
Instant coffee continues to drive growth
Further penetration in rural areas
Increasing popularity of organic coffee
Tea in Kenya
KEY DATA FINDINGS
Other tea registers highest value growth
Tea bags continue to outperform loose tea
Ketepa launches premum offering, Chai Gold.
Sri Lankan firm Browns acquisition of Kenya’s Lipton Tea estates shakes up the competitive landscape
Sustainability increasingly important
Consumers remain price sensitive
Other Hot Drinks in Kenya
KEY DATA FINDINGS
Minimal volume growth in 2024
Competitive landscape remains consoldiated
Inflation also dampens volume growth
Continuing muted volume growth over forecast period
Brands with a heathier profile benefit
E-commerce sees some value growth.
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Hot Drinks research and analysis database.
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