Kenya’s instant coffee market is projected to grow at a CAGR of 9.21%, from US$39.193 million in 2020 to US$72.607 million in 2027.
According to the statistics that have been provided in the Kenya Coffee Annual Report 2107 by the Global Agricultural Information Network of the USDA Foreign Agricultural Service under the Food and Agricultural Organization (FAO), the consumption of different types of coffee was lower in the country of Kenya. This is owing to the fact that the disposable income of a majority of individuals is not so high that they can purchase and consume premium beverages such as coffee. The beverage of preference for this chunk of the population is tea. However, only some of the individuals among the middle-income and high-income groups consume coffee in the region. Additionally, there are coffee shops present in the malls and a decent number of imported products that are available in the market to cater to consumers. However, a growing trend has been observed in which coffee, particularly instant coffee, is substituting the consumption of tea in the hot drinks sector, and thus, the market is anticipated to witness significant growth in the projected period.
Product Offerings by the market players in the Kenyan Instant Coffee Market
The offering of better and more advanced varieties of instant coffee with enhanced flavours and aromas, among others, by existing and new players in different markets is estimated to lead to increased adoption and propel the market growth further over the forecast period.
Dormans Coffee Ltd., which is considered to be the most famous brand of different types of coffee in Kenya, is based in Nairobi and is involved in the manufacture and sale of coffee products. It offers instant coffee products such as “Dormans Granulated Instant Coffee”, “Dormans Fine instant coffee”, and “Dormans Decaf Instant Coffee”. Granulated Instant Coffee is available in a coarser form in order to provide a thicker texture and bitterness to the coffee, which is preferred by some consumers. Fine Instant Coffee is the finer version of the product that is easier to dissolve in water and suitable to consume as a hot beverage, while Decaf Instant Coffee is for consumers who are not able to consume caffeine in their drinks. All of these products are available in tin cans of 100g and are also available as sticks.
Key Market Developments in the market:
COVID-19 Insights:
COVID-19 has a significant impact on the Kenya instant coffee market. During the pandemic, the prices of coffee became volatile. The deployment of complete lockdown led to the closure of the multiple institutions, corporations, food outlets, and many other public places, causing the sales to decline in these segments. Nevertheless, the domestic sales witnessed a surge in demand owing to its convenience and consumer stockpiling trend.
Segmentation