Retail sales of other hot drinks is expected to show significant growth in 2020 as consumers stockpiled staple items during the panic buying phase in the early stages of the lockdown. With schools closing, chocolate-based flavoured powder drinks drove sales in the product area in the first quarter of the year, being the preferred hot drink of choice at breakfast among school-aged children.
Tiger Brands strengthens its leadership in hot drinks in 2020, gaining further value share within a consolidated competitive landscape that only offers a marginal presence of smaller players. The company’s Matinal brand, present within flavoured powder drinks, specifically chocolate-based flavoured powder drinks, benefits from wide distribution networks and strong consumer loyalty, investing in marketing and advertising to retain Cameroonians’ attention.
The wide availability of raw materials in this product area in Cameroon supports the strength of domestic players, helping them to maintain some control over pricing in the category, particularly for the more affordable options of chocolate-based flavoured powder drinks and malt-based hot drinks. Both categories continue to benefit from a strong presence in retailers and the support of brands through strategic marketing activities, with any new product development mostly focusing on these products due to their widespread popularity, a trend that is unlikely to change over the forecast period.
As the country gradually comes out of lockdown and children return to school, it is anticipated that retail sales of other hot drinks will gradually return to before COVID-19 level. With the looming economic recession, income insecurity and a decline in disposable income, consumers are more likely to opt for economy priced other hot drinks.
Leader Tiger Brands is followed some way behind by multinationals AB Food & Beverages Ltd, which offers second-ranked Ovaltine, and Nestlé SA with Nesquik, which are both household names in the country and focus on offering family-size packaging. Both players also record strong performances in 2020, as they have the budgets to support their brands with innovative and attractive packaging, good availability in retailers and consumer loyalty as some Cameroonians hold foreign brands in high regard.
COVID-19 has led to a sentiment in Cameroon that local production of food and ingredients needs to be more invested in for the country to become less dependent on international trade and imports. The government of Cameroon has set the objective of encouraging local cacao production and processing.
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Understand the latest market trends and future growth opportunities for the Other Hot Drinks industry in Cameroon with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Other Hot Drinks research and analysis database.
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