Ready-to-Drink (RTD) Coffee & Tea - Uganda

The Ready-to-Drink (RTD) Coffee & Tea market in Uganda has been experiencing significant growth in recent years.

Customer preferences: Ugandan consumers have shown a growing preference for convenient and on-the-go beverage options, which has contributed to the increasing demand for RTD Coffee & Tea products. The busy lifestyles of urban consumers, coupled with the desire for a quick and refreshing drink, have made RTD Coffee & Tea an appealing choice. Additionally, the younger generation in Uganda, who are more open to trying new and innovative products, have also contributed to the rising popularity of RTD Coffee & Tea.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Uganda is the introduction of locally sourced and organic ingredients. Consumers are becoming more conscious about the origin and quality of the products they consume, and this has led to a growing demand for beverages made with natural and sustainable ingredients. As a result, local producers in Uganda are incorporating locally grown coffee and tea into their RTD products, catering to the preferences of the environmentally conscious consumers. Another trend in the market is the introduction of innovative flavors and packaging formats. To attract and retain customers, companies are constantly launching new flavors and variants of RTD Coffee & Tea. This not only provides consumers with a wider range of options but also creates excitement and novelty around the products. Additionally, companies are also experimenting with different packaging formats such as cans, bottles, and tetra packs to cater to the diverse consumer preferences and enhance the convenience factor.

Local special circumstances: Uganda, being one of the largest coffee producers in Africa, has a rich coffee culture. The availability of high-quality coffee beans locally has played a crucial role in the development of the RTD Coffee market. Ugandan consumers have a deep appreciation for coffee, and this has translated into a strong demand for RTD Coffee products. Additionally, the tea culture in Uganda is also well-established, with tea being a popular beverage choice among consumers. The combination of these factors has created a favorable environment for the growth of the RTD Coffee & Tea market in Uganda.

Underlying macroeconomic factors: The growing middle-class population in Uganda, coupled with increasing disposable incomes, has contributed to the growth of the RTD Coffee & Tea market. As consumers have more purchasing power, they are willing to spend on premium and convenient beverage options. Furthermore, the expanding urban population and the rise of modern retail channels have made RTD Coffee & Tea products more accessible to consumers across the country. These macroeconomic factors have created a conducive environment for the development and expansion of the RTD Coffee & Tea market in Uganda.

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.