RTD coffee in Egypt is associated with the high-income consumers, who are more aware of, and receptive to the westernisation trend. The average Egyptian consumer associates coffee with the hot drink, either Turkish coffee which the majority of Egyptian consumers drink, or instant coffee which is popular among middle- and high-income classes.
RTD coffee declined in terms of volume in 2018, in both the off-trade and on-trade. This was a direct result of the double-digit inflation, which has had an impact on spending even among the higher income consumer classes.
Sales of RTD coffee are expected to continue to decline in off-trade volume terms in the short to medium term, driven mainly by continuation of the economic reform programme and the ending of subsidies. In the long term, however, growth is expected to return to positive figures.
Nestlé SA continues to lead the RTD coffee category through its brand Nescafé, which is widely distributed in those channels that offer RTD coffee. It is followed by Starbucks, from Starbucks Coffee Egypt Ltd, which is gaining popularity as the Starbucks chain expands across Egypt.
Distribution of RTD coffee is focused on chained supermarkets and hypermarkets, which have adequate shelf space to accommodate such niche products. Moreover, distribution tends to be confined to hypermarkets and chained supermarkets that serve areas where high-income consumers reside, as they are the target consumers.
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This industry report originates from Passport, our Soft Drinks market research database.