Moderate growth of hot drinks in 2025
The demand for hot drinks continues to benefit from Tanzania’s growing population, rising disposable incomes, and increasing urbanisation, all of which are reshaping household consumption habits. However, despite the country’s progress in exporting commodities such as tea, coffee, and cocoa, local processing capabilities remain limited. This leaves the market vulnerable to global supply chain disruptions. As a result, prices have continued to rise, impacting demand among price-sensitive consumers and leading to a slow but steady increase in hot drinks volume sales. In response to this trend, the government has launched new initiatives aimed at reducing reliance on imports. These efforts also seek to boost the local economy over the long term by strengthening production capacity and adding value across the supply chain.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Tanzania 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 Tanzania, 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 Tanzania 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 Tanzania?
- To what extent are health considerations impacting consumption of Hot Drinks in Tanzania?
- What are the traditional preferences in Hot Drinks in Tanzania? 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 Tanzania?
- Which are the leading brands in Hot Drinks in Tanzania?
- How are products distributed in Hot Drinks in Tanzania?
- 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 Tanzania
Moderate growth of hot drinks in 2025
KEY DATA FINDINGS
While popular in Tanzania, local consumption of hot drinks is nevertheless low
Coffee remains less popular than tea while other hot drinks is nascent
Affordability characterises demand for hot drinks and hampers innovation
Demand continues to be driven by affordability
Government is intensifying efforts to boost the supply chain
Rising wellness trend supports demand for niche categories
Afri Tea & Coffee Blenders (1963) Ltd leads hot drinks
Nestlé Equatorial Africa Region achieves rapid growth with Nescafé
Small local grocers dominates hot drinks while supermarkets make considerable progress
Rapid growth of retail e-commerce from a low base
COUNTRY REPORTS DISCLAIMER
Key data findings
2025 developments
Demand continues to rise in urban areas
Industry performance
A growing café culture stimulates coffee consumption
Fresh coffee gains significant appeal thanks to the marketing efforts of industry players
What’s next?
Demand continues benefiting from favourable socioeconomic conditions
Sustainability redefines the coffee landscape
Expansion of coffee across both retail and consumer foodservice widens consumer accessibility
Competitive landscape
Afri Tea & Coffee Blenders (1963) Ltd sustains its lead in coffee
Strong growth of Nestlé Equatorial Africa Region Ltd with its Nescafé brand
Channels
Small local grocers retains a strong lead in the distribution of coffee
Retail e-commerce achieves strong growth from a low base
Category data
Key data findings
2025 developments
Rising production costs affect demand for tea
Industry performance
Tea is widely consumed across demographics
Unpackaged tea appeals to households on a budget
What’s next?
Government efforts to boost local production strengthens the value chain
Demand for black tea slows as the category reaches maturity
Growth in café culture boosts sales of tea via foodservice
Competitive landscape
Afri Tea and Coffee Blenders (1963) maintains a strong lead in tea
Strong growth for the agile Chai Bora
Channels
Small local grocers sustains its dominance in tea sales
Strong growth of retail e-commerce as consumers embrace its convenience
Category data
Key data findings
2025 developments
Demand for other hot drinks continues to be influenced by global supply shocks
Industry performance
High unit prices limit the popularity of other hot drinks
Imported products characterise other hot drinks
What’s next?
Demand continues benefiting from evolving lifestyles
Expansion in local production boosts accessibility
Growth in the middle class, tourism and an increase in rural consumption promote sales of other hot drinks
Competitive landscape
Trufoods with its Choco Primo brand leads just ahead of Nestlé SA
Rapid growth of Excel Chemicals and Raha Cocoa
Channels
Small local grocers retains its outright lead in the distribution of other hot drinks
Rapid growth of forecourt retailers from a low base
Category data
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?
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- 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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