Hot Drinks in Kenya
Euromonitor International's Hot Drinks in Kenya market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 59 | Publication date: Apr 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Tea Leads Hot Drinks Growth
Hot drinks continued to grow during 2008, albeit at a slower rate than in previous years, with tea sales increasing faster than those of coffee. Kenya exports almost all of its coffee production and it is estimated that there are ten times as many tea drinkers as coffee drinkers in the country. According to experts, increased domestic consumption could help to boost domestic manufacturing and employment and a number of coffee houses, such as Savannah Coffee House, are starting to appear throughout the country.
Political Instability Threatens Growth
The Food and Agriculture Organization (FAO) warned about the possibility of higher tea prices in 2008. Kenya is one of the world’s largest tea producers and political instability resulted in a 10% cut in production in 2008 which, it is feared, may result in a “tea price war” as demand outstrips supply.
Both Multinationals and Domestic Producers Prevalent within Hot Drinks
Coffee is dominated by multinationals which specialise in the production of the instant coffee brands which account for the majority of sales. However, domestic manufacturers lead sales within freshly ground coffee and coffee beans. Tea is dominated by domestic manufacturers, with KETEPA leading sales. As with coffee, other hot drinks sales are led by multinationals.
Off-Trade Outlets Continue to Dominate Sales
Whilst the majority of tea and other hot drinks sales are made off-trade, a small portion of coffee sales are made within on-trade establishments. Fresh ground coffee and coffee beans, are particularly dependent upon foodservice sales and have benefited from the increase in the number of coffee houses, such as Starbucks, in urban areas.
Supermarkets/hypermarkets such as Nakumatt and Uchumi accounted for the majority of distribution sales in 2008. Whilst larger retail outlets typically offer larger 50-200gm product formats, smaller outlets such as convenience stores and kiosks tend to offer smaller 5-50gm formats.
Increasing Diversification Fuelling Growth
FAO projections for the 2007-2017 period indicate that world black tea production will grow at an annual rate of 2% to reach 3.1 million tonnes while world green tea production is expected to grow at a considerably faster rate of 5% and reach 1.6 million tonnes. However, the situation in Kenya may be somewhat different due to the fact that low tea prices are forcing many farmers to return to subsistence farming.
A number of new players are expected to enter the segment during the forecast period and growth is likely to be fuelled by the introduction of new diverse products as opposed to increasing sales of existing products.
Table of contents
HOT DRINKS IN KENYA : MARKET INSIGHT
EXECUTIVE SUMMARY
Tea Leads Hot Drinks Growth
Political Instability Threatens Growth
Both Multinationals and Domestic Producers Prevalent within Hot Drinks
Off-Trade Outlets Continue to Dominate Sales
Increasing Diversification Fuelling Growth
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Hot Drinks Company Shares by Value 2004-2008
Table 12 Hot Drinks Brand Shares by Value 2005-2008
Table 13 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 14 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 15 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 17 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 19 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 21 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 23 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 24 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
COFFEE
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 25 Retail Sales of Coffee by Type: Volume 2003-2008
Table 26 Retail Sales of Coffee by Type: Value 2003-2008
Table 27 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 28 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 29 Coffee Company Shares 2004-2008
Table 30 Coffee Brand Shares 2005-2008
Table 31 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 32 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 33 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 34 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 35 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 36 Retail Sales of Tea by Subsector: Value 2003-2008
Table 37 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 38 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 39 Tea Company Shares 2004-2008
Table 40 Tea Brand Shares 2005-2008
Table 41 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 42 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 43 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 44 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 45 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 46 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 47 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 48 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 49 Other Hot Drinks Company Shares 2004-2008
Table 50 Other Hot Drinks Brand Shares 2005-2008
Table 51 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 52 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 53 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 54 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013
KENYA TEA PACKERS LTD (KETEPA)
Strategic Direction
Key Facts
Summary 2 Kenya Tea Packers Ltd: Key Facts
Company Background
Production
Competitive Positioning
Summary 3 [Kenya Tea Packers Ltd]: Competitive Position 2008
C DORMAN LTD
Strategic Direction
Key Facts
Summary 4 C Dorman Ltd: Key Facts
Company Background
Production
Competitive Positioning
Summary 5 C Dorman Ltd: Competitive Position 2008