Hot Drinks in Kazakhstan

Hot drinks continues to grow in 2016

In 2016, hot drinks retail volume sales grew at a slightly faster rate than in 2015. The popularity of hot drinks in Kazakhstan continues to increase due to several factors. Firstly, tea in Kazakhstan is considered a traditional drink which is consumed several times throughout the day. In addition, demand for hot drinks is also boosted by cold autumn and winter periods in Kazakhstan, when consumers look to get warm. Furthermore, the gradual development of a coffee consumption culture is also helping to boost hot drinks sales. For example, several multinational coffee chains such as Starbucks and Costa Coffee entered Kazakhstan in 2016, thus fueling demand for, and interest in, coffee.

Consumers searching for competitively priced brands

Hot drinks performed well in Kazakhstan in 2016. However, consumers are increasingly searching for price offers, with demand for good quality and affordable products being strong. In addition, consumers are showing interest in promotional activities in stores, such as buy-one-get-one-free or buying large packaging for a lower price. As a result of the two recent devaluations of the national currency, the purchasing power of consumers has decreased. Therefore, the majority of consumers are still not ready to purchase expensive brands.

Strong competition between domestic and international players

In Kazakhstan, both local and international brands have strong sales shares in hot drinks, with domestic manufacturers mainly focusing on tea, which is the traditional drink in the country. Due to the fact that tea is a very large area in Kazakhstan, domestic brands therefore have significant sales share. International companies, on the other hand, are present in tea, coffee and other hot drinks, with strong marketing campaigns supporting the leading position of such players.

Product portfolios enhanced by new tastes, flavours and designs

Tea and coffee were the most active areas with regard to new product development in 2016. In order to increase sales and attract consumers, many manufacturers of tea and coffee are focusing on introducing new tastes, flavours and designs, with new product launches being seen both among economy and premium tea and coffee brands.

Consumption set to increase in all hot drinks areas

It is expected that sales will continue to increase within all hot drinks areas over the forecast period. The improving economic situation, increasing disposable incomes, population growth, rising health awareness, premiumisation, and growing demand for new product launches will all help to boost the development of tea, coffee and other hot drinks over the coming years.

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