Hot Drinks in Algeria

Despite economic downturn, hot drinks records a positive performance in 2018

Hot drinks in Algeria continued to witness healthy growth in 2018 despite the challenge of falling disposable income levels resulting from rising inflation, driven by the drop in oil prices. Indeed, the progressive development of a modern retailing system, together with flourishing consumer foodservice, helped to sustain growth within hot drinks in 2018.

Challenged by maturity, hot drinks players rely on premiumisation

Coffee, the dominant category of hot drinks, has already reached maturity in Algeria and therefore saw only moderate retail volume growth in 2018 and over the review period. Thus, as Algerian consumers become more affluent and more sophisticated in their tastes, premium beverages are being increasingly preferred by middle- and high-income consumer groups.

Eurl Facto remains the leading player in a highly fragmented market

The competitive landscape in hot drinks remained very fragmented in Algeria in 2018. Eurl Facto continued to lead hot drinks in retail value terms in Algeria in 2018 due to its strong performance in fresh coffee.

New product launches limited by import restrictions

New products were launched in several hot drinks categories towards the end of the review period including tea bags, instant coffee, fresh ground coffee pods and chocolate-based flavoured powder drinks. This emphasises the growing demand for new drinking experiences among Algerians.

Further growth expected over the forecast period despite challenges

Hot drinks in Algeria looks set to continue growing over the forecast period. Trends observed over the review period should continue to bolster demand for hot drinks, including population growth, traditional consumption habits and the continuous development of modern retailing and consumer foodservice.

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