Hot drinks registered double-digit current value growth, though constant value growth was very low. The war in Ukraine led to an energy crisis, which in return led to high inflation.
With consumers feeling the financial pinch, players continue to innovate to ensure brand loyalty. New flavourings within tea, included Masala tea, with players highlighting its high antioxidant properties.
With tea being Kenya’s post popular hot drink, it is no surprise that Kenya Tea Packers Ltd (Ketepa) continued to dominate retail value sales of hot drinks in 2022. It also continued to innovate in order to ensure consumers remain loyal to its brands.
Over the review period, supermarkets have passed out small local grocers in terms of value sales and in 2022 accounted for nearly two-thirds of value sales, with small local grocers, accounting for just a third. This increased value share for supermarkets is due to more and more Kenyans moving to cities and also continued openings of supermarkets.
Retailers registered higher volume growth than foodservice in 2022, as with consumers having reduced purchasing power due to high inflation, they opted to purchase hot drinks through cheaper retail channels as much as possible. The retail channel also continued to be much more sizeable than foodservice, accounting for nearly nine-tenths of volume sales.
Hot drinks will register healthy constant value and volume growth over the forecast period. Population growth will support volume sales.
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Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Kenya with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
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