Hot drinks in Kenya showed a solid performance in 2023, with growth in total volume sales surpassing that recorded in 2022. This improvement was primarily driven by buoyant demand in tea, by far the largest of the three main categories, though coffee and other hot drinks also saw off- and on-trade volume sales increase.
While the rising cost of living saw most Kenyans exercise greater caution in their discretionary spending habits in 2023, premiumisation remained visible across the hot drinks market. This trend was mainly evident at the retail level, though exposure to different types of beverages via on-trade establishments – most notably specialist coffee and tea shops – continued to play a key role in encouraging people to choose higher-end varieties for drinking at home.
Kenya Tea Packers Ltd (Ketepa) remained the top company in Kenyan hot drinks in retail value sales terms by a substantial margin in 2023. This was due to its commanding lead in tea, specifically black tea, where its Fahari ya Kenya brand enjoys high levels of recognition and loyalty among local consumers thanks to wide distribution, strong marketing support, frequent innovation and a longstanding reputation for offering good quality at a reasonable price.
Supermarkets remained by far the most important retail distribution channel for hot drinks in Kenya in volume terms in 2023, followed by small local grocers. Together, these two channels accounted for the bulk of total sales, with all others holding low single-digit volume shares.
Hot drinks consumption remained heavily concentrated in retail channels in Kenya in 2023. Nonetheless, foodservice volume sales continued to increase at a robust pace, with growth exceeding that witnessed over 2021-2022.
The outlook for hot drinks in Kenya over the forecast period is bright on the whole, with off- and on-trade volume sales projected to increase at faster rates than during the review period. Overall consumption will continue to be buoyed by population growth, urbanisation and gradual improvements in living standards.
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Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
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