Hot Drinks in Morocco

COVID-19 impact on hot drinks

Total volume sales of hot drinks increased substantially in Morocco over the course of 2020 despite the influence of the COVID-19 pandemic. However, growth rates diverged between the on-trade and off-trade channels as strong declines were registered in the foodservice channel, while retail sales rose substantially.

COVID-19 country impact

It was first confirmed that the COVID-19 virus had spread to Morocco on 2 March 2020, when the first case COVID-19 case was confirmed in Casablanca. A lockdown was introduced in Morocco on 20 March, with only one person per family allowed to leave their home for a list of very limited purposes – buying groceries or medicine and medical visits.

Company response

As mentioned above, significant stockpiling was seen in Moroccan retail outlets during the early stages of the COVID-19 pandemic. Manufacturers were at first overwhelmed by the resultant sudden spike in demand for their products, which resulted in periodic shortages of some products on retail shelves.

Retailing shift

In terms of retail channels, the big winners from the COVID-19 situation during 2020 were supermarkets and hypermarkets. This was a reflection of the tendency for Moroccans to go shopping less often during the quarantine lockdown that was imposed at the peak of the COVID-19 pandemic and the period of social distancing and home seclusion which followed it.

Foodservice vs retail split

It is undeniable that Morocco’s consumer foodservice industry was very seriously impacted by the COVID-19 crisis over the course of 2020. The most important factor to take into consideration is that all consumer foodservice establishments in the country were required to remain closed for on-trade service for a period of three months at the peak of the COVID-19 pandemic, with delivery and takeaway orders their only sources of revenue.

What next for hot drinks?

A positive performance is expected to be seen across Morocco’s hot drinks industry during the forecast period. Retail sales are expected to continue rising, not having experienced any serious declines during 2020 as demand remained strong in the off-trade.

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