As Uganda is a major exporter of tea and coffee, these are by far the most popular types of hot drinks in the country, especially tea. Demand for other hot drinks remains low and confined to the affluent urban middle class.
The positive performance recorded in hot drinks in Uganda during 2023 was largely due to a strong performance in the local economy as the impact of the COVID-19 pandemic receded towards vanishing point. In addition to rising levels of foreign direct investment and widespread optimism surrounding the country’s nascent oil exploration activities, economic growth is being supported by rising consumer spending.
2022 saw Uganda’s crucial travel and tourism industry recover robustly from the closure of the country’s borders to foreign visitors at the peak of the COVID-19 pandemic. The wider hospitality sector, including the entire consumer foodservice industry, relies on foreign visitors and inbound tourists remain an important source of revenues for on-trade establishments throughout the country, especially in large cities and well-known tourist resorts.
During 2022, on-trade sales of hot drinks continue to recover from the declines registered over the course of 2020 as the COVID-19 control measures imposed by the government substantially reduced the opportunities for consumers to access cafés, bars, restaurants and other consumer foodservice outlets. In particular, bars and other licensed 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.
Further positive growth is slated for hot drinks in Uganda over the forecast period, with economic development, population growth, urbanisation and the expansion of the affluent urban middle class all set to underpin a positive performance for the industry. In particular, well-paid young urban professionals are set to remain the crucial consumer group for sales of hot drinks generally, especially coffee.
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Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Uganda with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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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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