Soft Drinks - Africa

The Soft Drinks market in Africa has seen significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in Africa have shifted towards healthier beverage options, with a growing demand for natural and low-sugar drinks. Consumers are becoming more health-conscious and are seeking out products that are perceived as better for their overall well-being. This has led to an increased demand for fruit juices, bottled water, and other non-carbonated beverages. Additionally, there is a growing trend towards premium and functional beverages, such as energy drinks and sports drinks, as consumers seek products that offer added benefits. Trends in the market reflect the diverse and dynamic nature of the African continent. In some countries, there is a strong preference for traditional beverages, such as herbal teas and fermented drinks, which are deeply rooted in local culture and traditions. These traditional beverages often have unique flavors and ingredients that appeal to consumers looking for authentic and nostalgic experiences. Local special circumstances also play a role in shaping the Soft Drinks market in Africa. Infrastructure challenges, such as limited access to clean water and electricity, can impact the availability and affordability of soft drinks in certain regions. This has led to the rise of innovative packaging solutions, such as single-serve sachets and smaller bottle sizes, which are more accessible to consumers in remote areas. Underlying macroeconomic factors, such as population growth, urbanization, and rising disposable incomes, have also contributed to the development of the Soft Drinks market in Africa. As more people move to cities and experience an increase in purchasing power, the demand for convenience and on-the-go beverages has grown. This has led to the expansion of distribution networks and the introduction of new product formats, such as ready-to-drink teas and coffees. In conclusion, the Soft Drinks market in Africa is evolving to meet the changing preferences and needs of consumers. Healthier options, premium and functional beverages, traditional drinks, and innovative packaging solutions are all contributing to the growth of the market. Local special circumstances, such as infrastructure challenges, and macroeconomic factors, such as population growth and rising disposable incomes, are also shaping the market. As the African continent continues to develop and urbanize, the Soft Drinks market is expected to further expand and diversify.

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.