Soft Drinks - Lesotho

The Soft Drinks market in Lesotho has been experiencing significant growth in recent years. Customer preferences have shifted towards healthier beverage options, leading to an increase in demand for low-sugar and natural drinks. Additionally, the rising disposable incomes and changing lifestyles of consumers have contributed to the growth of the market.

Customer preferences: In Lesotho, customers are increasingly opting for healthier beverage options. With growing awareness about the negative health effects of excessive sugar consumption, consumers are seeking low-sugar and natural soft drinks. This has led to a rise in the demand for products that are made with natural ingredients and do not contain artificial sweeteners or additives. Furthermore, consumers are also showing a preference for drinks that provide functional benefits, such as energy-boosting or hydrating properties.

Trends in the market: One of the key trends in the Soft Drinks market in Lesotho is the increasing popularity of bottled water. As consumers become more health-conscious, they are choosing to replace sugary carbonated drinks with bottled water. This trend is driven by the perception that bottled water is a healthier alternative and can help in maintaining hydration levels. As a result, both domestic and international brands are introducing bottled water products in the market to cater to this growing demand. Another trend in the market is the rise of functional beverages. Consumers are seeking soft drinks that offer additional benefits beyond quenching thirst. Functional beverages, such as energy drinks or sports drinks, are gaining popularity among consumers who are looking for a boost of energy or enhanced performance. This trend is driven by the increasing participation in sports and fitness activities, as well as the desire for convenience in a fast-paced lifestyle.

Local special circumstances: Lesotho is a landlocked country with a small population, which presents unique challenges and opportunities for the Soft Drinks market. The limited size of the market means that companies need to carefully tailor their products to meet the specific needs and preferences of the local consumers. Additionally, the geographical location of Lesotho makes it more expensive to import products, which can affect pricing and availability.

Underlying macroeconomic factors: The growth of the Soft Drinks market in Lesotho is also influenced by underlying macroeconomic factors. The rising disposable incomes of consumers have allowed them to spend more on non-essential items, such as soft drinks. As the economy continues to grow, consumers have more purchasing power, which is driving the demand for soft drinks. Furthermore, changing lifestyles and urbanization are also contributing to the growth of the market. As more people move to urban areas, there is an increased demand for convenience products, including soft drinks. The fast-paced lifestyle of urban dwellers often leads to a higher consumption of on-the-go beverages, which is driving the growth of the market. In conclusion, the Soft Drinks market in Lesotho is experiencing growth due to changing customer preferences, including a shift towards healthier options and functional beverages. The rise in disposable incomes and changing lifestyles of consumers, along with underlying macroeconomic factors, are also contributing to the growth of the 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.