In the review period, the demand for soft drinks was partially affected by economic constraints, as rising inflation and unemployment left consumers with shrinking disposable incomes. Manufacturers also suffered as they learned they would be hit with an excise charge of KES1.
The review period saw Bidco Africa and Denmark’s Co-Ro embark on a joint venture named BIDCORO to launch a new juice variant in the market. The partnership is meant to leverage on Co-Ro’s heritage in the juice industry globally and on Bidco’s local knowledge and strong distribution network.
Coca-Cola East & Central Africa Division remained the leading player in the Kenyan soft drinks market in 2018. maintaining its retail value and volume shares from the previous year but seeing a slight decline in both.
The increased awareness of product content has led to rising demand for healthier beverage alternatives. Manufacturers are increasingly being required to clearly indicate the ingredients of their products on their bottles as well as give nutritional information.
Soft drinks in Kenya is expected to record strong volume growth in the forecast period as players in the market continue to innovate to meet changing consumer needs. Particularly, in the juice, carbonates and concentrates categories, manufacturers are set to use “reduced sugar content” as a major differentiator, to appeal to consumers seeking both value and healthier drinks.
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This industry report originates from Passport, our Soft Drinks market research database.