Hot Drinks Market in Kenya

The Hot Drinks in Kenya market research report includes:

• Analysis of key supply-side and demand trends
• Detailed segmentation of international and local products
• Historic volumes and values, company and brand market shares
• Five year forecasts of market trends and market growth 
• Robust and transparent market research methodology, conducted in-country

Coffee Board of Kenya moves to increase local coffee consumption

Unlike neighbour Ethiopia, which has a well-entrenched coffee-drinking culture, Kenya is almost a net exporter of coffee and tea. Only 2% of the coffee produced in the country is consumed locally, while domestic tea consumption stands at around only 5% of production. Experts claim that around seven out of 10 Kenyans drink tea while one in 10 consumes coffee. The Coffee Board of Kenya, the Fair Trade Organization of Kenya and Progreso Network have entered into a public-private partnership aimed at stimulating domestic coffee consumption.

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Tea production declines in the midst of weather and infrastructure challenges

According to the Tea Board of Kenya, 2011 saw total production of 377 million kg compared to 399 million kg in 2010, equating to a 5% drop. However, earnings in 2011 were the best ever, at KES109 billion compared to KES97 billion in 2010. An average price of US$2.99 was recorded in 2011 compared to US$2.75 in 2010. Overall tea sales at the Mombasa Auction for the year stood at 247.3 million kg compared to 259 million kg in 2010.Total export volumes stood at 421 million kg, which marked a 5% decline from 441 million kg in 2010. Kenyan tea was exported to 54 countries in 2011 compared to 48 destinations in 2010.

Kenyan youths embracing the new urban coffee culture continue to fuel competition

Looked at from an export perspective, coffee remains a key product for Kenya. Even though local consumption remains a key challenge, the coffee board and other organisations are making a concerted effort to stimulate domestic consumption via various marketing events, such as competitions. 2011 continued to see an increased number of visits to coffee shops as consumers became more aware of coffee specialities such as latte, cappuccino and macchiato. Worth noting is the increasing number of younger people aged between 18 and 35 showing a greater interest in coffee.