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

The Ready-to-Drink (RTD) Coffee & Tea market in Malawi is experiencing significant growth due to changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: In recent years, there has been a shift in customer preferences towards convenient and on-the-go beverage options. Ready-to-Drink (RTD) Coffee & Tea products have gained popularity among consumers who are looking for a quick and easy way to enjoy their favorite beverages. The convenience factor of RTD products allows consumers to satisfy their coffee and tea cravings without the need for brewing or steeping. Additionally, the busy lifestyles of consumers in Malawi have contributed to the growing demand for RTD Coffee & Tea products.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Malawi is the increasing demand for healthier and natural ingredients. Consumers are becoming more health-conscious and are looking for beverages that are made with natural ingredients and have reduced sugar content. This has led to the introduction of RTD Coffee & Tea products that are sweetened with natural sweeteners such as stevia or honey, and are free from artificial additives or preservatives. Furthermore, there is a growing trend towards premium and specialty RTD Coffee & Tea products, which offer unique flavors and high-quality ingredients.

Local special circumstances: Malawi is known for its agricultural industry, particularly in the production of tea. The country has a favorable climate and rich soil, which allows for the cultivation of high-quality tea leaves. This local advantage has contributed to the availability of locally sourced tea for RTD products. The use of locally sourced ingredients not only supports the local economy but also provides consumers with a sense of authenticity and trust in the products they consume.

Underlying macroeconomic factors: The growing middle class in Malawi has played a significant role in the development of the RTD Coffee & Tea market. As disposable incomes increase, consumers have more purchasing power and are willing to spend on premium and convenient beverage options. Additionally, the urbanization of the country has led to a higher demand for on-the-go products, including RTD Coffee & Tea. The rise of cafes and coffee shops in urban areas has also contributed to the growing popularity of RTD products, as consumers seek to recreate the cafe experience at home or on the go. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Malawi is experiencing growth due to changing customer preferences, emerging trends, and local special circumstances. The demand for convenient and on-the-go beverage options, healthier ingredients, and premium products has driven the development of the market. Additionally, the availability of locally sourced tea and the growing middle class in Malawi have further fueled the growth of the RTD Coffee & Tea market.

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.