Hot Drinks in Morocco
Euromonitor International's Hot Drinks in Morocco 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: 47 | Publication date: May 2006
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- 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
Executive summary
Hot drinks performed well over the review period.
Hot drinks continued to perform well over the review period with the value growth of 9.01% and volume growth of 6.2% over the previous year. Value growth exceeded volume growth which can be explained by high prices of coffee and other hot drinks brands, couple with the fact that Moroccan consumers are trading up to premium produncts. Also, the growth was driven by the desire for more convenient hot drinks, intensified by the improving standard of living and purchasing power of Moroccans.
Coffee leads value sales of hot drinks
Value sales of coffee continued to flourish over the review period with the total growth rate performance of 12.17% over the previous year. Coffee continues to enjoy popularity among Moroccan consumers as a traditional drink. Most Moroccans drink coffee twice a day; in the morning and in the evening times. Unbranded coffee sold at wholesalers is enjoying popularity compared with branded products. However, the increase in supermarkets/hypermarkets, the influence of the West and efforts made in marketing mean that branded products are snatching positive shares over the review period. In addition, players operating in the environment are stressing economy products, aiming to widen the area of sales.
Tea, a favourite drink in Morocco
Tea maintained a steady growth over the review period, recording the value growth rate of 0.77% and volume growth increase of 2.05% over the year 2004. Tea is the most desired hot drink and largely consumed by all Moroccans. By and large, tea is used to entertain guests and consumed three times a day by all Moroccans.
Green tea drives volume sales due to wide variety of marketed brands in the market. Traditionally, green tea was much more consumed by Moroccans. In 2005, green tea represented the total share of 99.68% of the total volume sales performed by tea. This success was the result of the effective distribution and affordable prices that green tea enjoyed over the review period.
Because of lack of popularity reinforced by high prices, black standard tea and back speciality tea are limited to high upper middle families in sales. This type of tea is still unwelcome as Moroccans attached to green tea.
While foreign players lead in coffee and other hot drinks, domestic companies are successful in tea
Domestic players continued to dominate tea with the total share of 54.2% thanks to the leading local player ONTS Company. The latter has benefited from its long establishment in Morocco, a fact that have made its brands of green tea widely popular among Moroccan consumers. In order to compete international players and to stimulate sales, the company stressed the importance of economy products and effective distribution. This strategy enables the company to continue leading tea. Moreover, the company was acting in the environment with the great number of brands, most of which are marketed with affordable prices, taking the advantage of effective advertising campaigns.
Regarding Nestlé Maroc SA, the company controlled the two sectors of coffee and other hot drinks with the overall respective shares of 63.6% and 5.3% in 2005. The company has benefited from the wide popularity of Nescafé and Nesquik brands among the Moroccan consumers. Nescafé brand topped the list of local brand name over the review period. In order to enlarge the scope of consumption, the company launched small sachets aiming to involve the lower income categories in consumption.
Independent food stores leads distribution
Independent food stores manipulated the distribution of hot drinks over the review period with the total share of 56.7%. This good percentage was traced back to the fact that these outlets are considered the most visited outlets by the consumers in shopping operations. Unlike supermarket/hypermarket channels, Independent food stores allow consumers to use credit card. What is more is that independent food stores outlets outnumbered those of hypermarkets which is considered the key factor contributed to the growth over the review period.
Positive outlook
Hot drinks are forecasted to continue increasing healthily over the forecast period with predicted value and volume CAGR of 6.08% and 5.28% respectively.
With the exception of tea, value growth is expected to continue outpacing the volume growth as Moroccan consumers are expected to continue trading up to premium products especially in instant standard coffee and decaffeinated coffee brands. These brands will continue attracting consumer as a result of the high good quality.
Green tea will continue accounting for the largest volume share over the forecast period. As a deeply rooted habit and a way of socialising, green tea is predicted to be kept consuming by all Moroccans over the forecast period. Against this good forecast, a minimum chances awaiting black tea because it is not part of Moroccan culture.
Regarding other hot drinks, it is forecasted to achieve a modest growth because of high prices and consumer’s unfamiliarity of these brands. Also, they are not promoted enough either by advertising or in retail outlets. Therefore, the demand is predicted to continue coming from children, limiting the value growth to 2.66% and volume growth to 0.95% by 2010.
Table of contents
HOT DRINKS IN MOROCCO : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. HOT DRINKS SALES
2.1 Market Performance
Table 1 Retail Sales of Hot Drinks by Sector: Volume 2000-2005
Table 2 Retail Sales of Hot Drinks by Sector: Value 2000-2005
Table 3 Retail Sales of Hot Drinks by Sector: % Volume Growth 2000-2005
Table 4 Retail Sales of Hot Drinks by Sector: % Value Growth 2000-2005
2.2 Competitive Environment
Table 5 Hot Drinks Company Shares by Retail Value 2001-2005
Table 6 Hot Drinks Brand Shares by Retail Value 2002-2005
2.3 Leading Company Profile – ONTS (Office National du Thé et Sucre)
Summary 1 ONTS Operational Indicators 2005
2.4 Leading Company Profile – Cafés Sahara
Summary 2 Cafés Sahara Operational Indicators 2005
2.5 Leading Company Profile – Cafés Dubois SA
Summary 3 Cafés Dubois Operational Indicators 2005
2.6 Retail Distribution
Table 7 Retail Sales of Hot Drinks by Distribution Format: % Analysis 2000/2005
Table 8 Retail Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2005
2.7 Retailer Activity and Private Label Trends
Table 9 Penetration of Private Label by Sector 2001- 2005
2.8 Forecast Market Performance
Table 10 Forecast Retail Sales of Hot Drinks by Sector: Volume 2005-2010
Table 11 Forecast Retail Sales of Hot Drinks by Sector: Value 2005-2010
Table 12 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2005-2010
Table 13 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2005-2010
3. COFFEE
3.1 Sector Performance
Table 14 Retail Sales of Coffee by Type: Volume 2000-2005
Table 15 Retail Sales of Coffee by Type: Value 2000-2005
Table 16 Retail Sales of Coffee by Type: % Volume Growth 2000-2005
Table 17 Retail Sales of Coffee by Type: % Value Growth 2000-2005
Table 18 Coffee Company Shares 2001-2005
Table 19 Coffee Brand Shares 2002-2005
Table 20 Forecast Retail Sales of Coffee by Type: Volume 2005-2010
Table 21 Forecast Retail Sales of Coffee by Type: Value 2005-2010
Table 22 Forecast Retail Sales of Coffee by Type: % Volume Growth 2005-2010
Table 23 Forecast Retail Sales of Coffee by Type: % Value Growth 2005-2010
3.2 Coffee Pods Performance
Table 24 Standard Vs Coffee Pods 2004/2005
4. TEA
4.1 Sector Performance
Table 25 Retail Sales of Tea by Subsector: Volume 2000-2005
Table 26 Retail Sales of Tea by Subsector: Value 2000-2005
Table 27 Retail Sales of Tea by Subsector: % Volume Growth 2000-2005
Table 28 Retail Sales of Tea by Subsector: % Value Growth 2000-2005
Table 29 Tea Company Shares 2001-2005
Table 30 Tea Brand Shares 2002-2005
Table 31 Forecast Retail Sales of Tea by Subsector: Volume 2005-2010
Table 32 Forecast Retail Sales of Tea by Subsector: Value 2005-2010
Table 33 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2005-2010
Table 34 Forecast Retail Sales of Tea by Subsector: % Value Growth 2005-2010
5. OTHER HOT DRINKS
5.1 Sector Performance
Table 35 Retail Sales of Other Hot Drinks by Subsector: Volume 2000-2005
Table 36 Retail Sales of Other Hot Drinks by Subsector: Value 2000-2005
Table 37 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2000-2005
Table 38 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2000-2005
Table 39 Other Hot Drinks Company Shares 2001-2005
Table 40 Other Hot Drinks Brand Shares 2002-2005
Table 41 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2005-2010
Table 42 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2005-2010
Table 43 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2005-2010
Table 44 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2005-2010
6. DEFINITIONS