Uganda is a major exporter of tea and coffee and these are by far the most popular categories of hot drinks. Demand for other hot drinks is low and confined to affluent urban dwellers.
Uganda’s official response to the COVID-19 pandemic centred on imposition of quarantine lockdowns, with these still in effect at various points during the second half of 2021 due to the second wave of the pandemic which struck Uganda in June 2021. These quarantine lockdowns have interrupted commercial activity in key sectors of the economy, resulting in lower levels of disposable income for many consumers, prompting reduced spending on hot drinks.
The closure of Uganda’s borders to foreign visitors in response to the COVID-19 pandemic had a devastating impact on the country’s crucial travel and tourism industry. This also had a negative impact on the wider hospitality sector, including the entire consumer foodservice industry, with foreign visitors an important source of revenues for on-trade establishments throughout the country, but especially in large cities and well-known tourist resorts.
On-trade sales of hot drinks come under extreme pressure during the second half of 2020 as the control measures imposed by the Uganda government response to the COVID-19 pandemic substantially reduced the opportunities for consumers to access cafés, bars, restaurants and other consumer foodservice outlets. In particular, bars and other license venues were forced to close down temporarily during quarantine lockdowns.
Kampala Capital City Authority (KCCA) took the opportunity to undertake major maintenance projects for many major roads during the quarantine lockdowns that were implanted in response to the COVID-19 pandemic and this has improved the delivery of fmcg in urban and rural areas of the country. The roads covered by this maintenance programme include Park Lane Road, Sir Apollo Kaggwa Road and Queen’s Way Road in Kampala, as well as the city’s Gulu, Lira and Masaka neighbourhoods.
A strong recovery is expected for sales of hot drinks over the forecast period, with sales set to benefit from urbanisation, economic growth, rising disposable income levels and the expansion of the urban middle class, a crucial consumer group for sales of hot drinks generally, but especially coffee. Put simply, affluent urban dwellers are considerably more likely to buy packaged hot drinks than their less affluent, rural-dwelling counterparts, particularly tea.
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This is the aggregation of Coffee, Tea, and Other Hot Drinks.See All of Our Definitions
This report originates from Passport, our Hot Drinks research and analysis database.
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