Coffee dominates retail volume sales of hot drinks in Ethiopia. Coffee has a long history in the country and is regularly consumed by most adults.
Ethiopia has faced major setbacks because of political instability and the slow pace of economic reforms. Political instability remained high in 2023 owing to high levels of insecurity nationwide.
Hot drinks tend to be consumed both for breakfast and later in the morning. During periods of cold weather, hot drinks are also consumed in the evening.
In 2023, economic challenges characterised by high inflation and an increasing cost of living have made consumers highly price-sensitive. This sensitivity has noticeably affected the hot drinks market as consumers actively search for more affordable alternatives.
Transportation infrastructure continues to pose challenges to those distributing hot drinks, with only 0.1km of road per sq km in this predominantly rural country.
Hot drinks is expected to see only modest retail volume growth in the forecast period, with retail volume sales growth hindered by widespread poverty, a predominantly rural population and strong informal sales of unroasted coffee beans.
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Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
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