Consumers are expected to shift towards online shopping through e-commerce channels in 2020. Although e-commerce will remain a marginal channel in the category in 2020, the introduction of the partial lockdown and home seclusion rules intended to curb the spread of COVID-19 is expected to contribute to the growth of e-commerce.
The ban on social gatherings in Kenya as well as nationwide school closures are expected to contribute to the decline in foodservice sales of other hot drinks in 2020. The majority of consumers of other hot drinks such as chocolate-based flavoured powder drinks were mainly students and school children in Kenya.
Brand innovation in other hot drinks is expected to boost retail volume sales in 2020. Tru Foods ltd, for example, has recently launched a new line of small SKU three-in-one chocolate-based flavoured powder drinks containing creamer, chocolate and sugar.
Consumer awareness of health and wellness trends in Kenya is continuing to grow and will impact the shape of other hot drinks during the forecast period. Consumers are increasingly looking for healthier options in other hot drinks, which is expected to restrict sales in the category as many products in this category have high sugar levels.
As the country faces continued economic uncertainty and financial hardship following the upheaval of the COVID-19 crisis, consumers in Kenya could become more price sensitive and look to prioritise their spending. Brands are expected to respond to this economic upheaval by increasing their promotional activity.
Following the expansion of e-commerce services in 2020, distribution is expected to see a further shift towards e-commerce in the forecast period. The experience of the COVID-19 crisis has improved the visibility and reputation of e-commerce in Kenya as the channel is now perceived as a safe and convenient way of shopping.
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Understand the latest market trends and future growth opportunities for the Other Hot Drinks industry in Kenya with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Other Hot Drinks industry in Kenya, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Other Hot Drinks research and analysis database.
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