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Africa Ready to Drink Coffee Market Size

The Africa Ready to Drink Coffee Market is experiencing significant growth, driven by the increasing demand for convenient beverage options among young and middle-aged professionals. This trend is particularly evident in the rising popularity of cold brew and iced coffee, which are attracting new consumers and fostering innovation with functional ingredients. The market's expansion is further supported by the growing middle class and a heightened appreciation for high-quality coffee, contributing to a notable increase in coffee consumption across the region. South Africa and Egypt are key players in this growth, with South Africa's urban coffee consumption transforming due to higher disposable incomes and a demand for specialty coffees, while Egypt leads in the rapid adoption of RTD coffee, particularly cold brews.

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Market Size of africa ready to drink coffee Industry

Africa Ready to Drink Coffee Market Summary
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svg icon Study Period 2018 - 2030
svg icon Market Size (2024) USD 5.88 Million
svg icon Market Size (2030) USD 9.03 Million
svg icon Largest Share by Soft Drink Type Iced coffee
svg icon CAGR (2024 - 2030) 7.40 %
svg icon Largest Share by Country Egypt

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Africa Ready to Drink Coffee Market Analysis

The Africa Ready to Drink Coffee Market size is estimated at 5.88 million USD in 2024, and is expected to reach 9.03 million USD by 2030, growing at a CAGR of 7.40% during the forecast period (2024-2030).

5.88 Million

Market Size in 2024 (USD)

9.03 Million

Market Size in 2030 (USD)

5.47 %

CAGR (2018-2023)

7.40 %

CAGR (2024-2030)

Largest Segment by Soft Drink Type

23.97 %

value share, Iced coffee, 2023

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Convenience and portability of RTD iced coffee, availability of wide range of flavours, and active lifestyles of millennial consumers promote the growth of RTD coffee.

Fastest-growing segment by Soft Drink Type

8.62 %

Projected CAGR, Cold Brew Coffee, 2024-2030

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Increase in the consumer focus on healthy lifestyle and benefits of RTD cold brew coffee in boosting the digestive system owing to its natural antioxidant content.

Leading Market Player

57.02 %

market share, Nestle S.A., 2022

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The company is evolveing in its product offerings and is investing in brand building, digitalization and sustainability initiatives to meet consumer needs and preferences.

Largest Segment by Country

85.67 %

value share, Egypt, 2023

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With the rise in middle-class income the demand for RTD coffee from melinnials increased, emphasis on premium and sustainabile RTD coffee has increased their consumption in Egypt

Fastest-growing segment by Country

17.73 %

Projected CAGR, Nigeria, 2024-2030

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Pre-packaged, grab-and-go such as RTD cold brew coffee with regular and permium products, flavours in iced coffee are gaining prominance in the fast-paced lives of consumers.

The developments in the cold coffee sector in the region are likely to propel market growth in the future

  • The RTD coffee segment is gaining popularity in Africa, driven by the rising demand for ready-to-drink beverages. This trend is fueled by the convenience it offers, especially appealing to the busy lifestyles of both young and middle-aged professionals. Coffee plays a crucial role in the livelihoods of over 12 million African households, particularly those in rural areas. In countries like Burundi (38%), Tanzania (23%), Uganda (22%), Côte d’Ivoire (17%), and Ethiopia (14%), a significant portion of the population relies on coffee farming for their income.
  • Cold brew coffee is poised to exhibit the highest growth rate, with a projected CAGR of 8.62% in value from 2024 to 2030. The cold coffee market is diversifying, attracting new consumers. Innovations in this space include infusing cold coffees with ingredients like mushrooms, CBD, and botanical extracts, offering functional benefits. This sector is also witnessing a surge in premiumization. As the demand for high-quality cold coffee rises, farmers stand to benefit from potential price premiums.
  • Young consumers in Africa have a preference for RTD iced coffee. The premium and specialty iced coffee segment is expanding, with a rising interest in artisanal, small-batch offerings. This growth is driven by the younger demographics, particularly millennials and Generation Z, who are more adventurous in exploring coffee varieties and flavors. Thus, the sales value of iced coffee in Africa saw a notable uptick of 19.90% between 2019 and 2023.
Africa Ready to Drink Coffee Market

Rising coffee culture among the youth and travelers drives the market

  • The demand for coffee in Africa is increasing due to the rising young middle class and a growing appreciation for the beverage among those travelers. In 2022, Africa saw a notable 2.6% surge in coffee consumption, accounting for 63.8% of the region's overall consumption. This shift in consumer behavior, marked by a preference for high-quality coffee profiles, is bolstering the growth of the ready-to-drink (RTD) coffee market. Projections indicate that the African RTD coffee market is expected to witness a CAGR of 40.11% by value during 2024-2030.
  • South Africa holds the second-largest market share. From 2020 to 2028, the South African RTD coffee market grew by 27.07% by value. Notably, coffee consumption patterns in South Africa, particularly in urban areas, are undergoing a transformation. The rise in disposable incomes among the middle class has contributed to this shift. Additionally, there is a rising demand for specialty and premium coffees, including those with specific origins. As major brands diversify their offerings, introducing zero-sugar alternatives to traditional soft drinks, RTD coffee and its variants are gaining traction as a more accessible option.
  • In 2022, Egypt's coffee consumption stood at approximately 70,000 tons, marking a significant 94.4% surge from 2017. Egypt is witnessing a surge in the popularity of specialty coffee, with many coffee shops now offering high-quality, single-origin beans for RTD coffee. Notably, the trend of cold brews is driving the RTD coffee market in Egypt. Cold brews, known for their longer shelf life and flexibility in storage, are finding favor among consumers. Egypt stands out as the fastest-growing market for RTD coffee, with projections indicating a robust CAGR of 10.33% by value during 2024-2030.

Africa Ready to Drink Coffee Industry Segmentation

Cold Brew Coffee, Iced coffee are covered as segments by Soft Drink Type. Aseptic packages, Glass Bottles, Metal Can, PET Bottles are covered as segments by Packaging Type. Off-trade, On-trade are covered as segments by Distribution Channel. Egypt, Nigeria, South Africa are covered as segments by Country.

  • The RTD coffee segment is gaining popularity in Africa, driven by the rising demand for ready-to-drink beverages. This trend is fueled by the convenience it offers, especially appealing to the busy lifestyles of both young and middle-aged professionals. Coffee plays a crucial role in the livelihoods of over 12 million African households, particularly those in rural areas. In countries like Burundi (38%), Tanzania (23%), Uganda (22%), Côte d’Ivoire (17%), and Ethiopia (14%), a significant portion of the population relies on coffee farming for their income.
  • Cold brew coffee is poised to exhibit the highest growth rate, with a projected CAGR of 8.62% in value from 2024 to 2030. The cold coffee market is diversifying, attracting new consumers. Innovations in this space include infusing cold coffees with ingredients like mushrooms, CBD, and botanical extracts, offering functional benefits. This sector is also witnessing a surge in premiumization. As the demand for high-quality cold coffee rises, farmers stand to benefit from potential price premiums.
  • Young consumers in Africa have a preference for RTD iced coffee. The premium and specialty iced coffee segment is expanding, with a rising interest in artisanal, small-batch offerings. This growth is driven by the younger demographics, particularly millennials and Generation Z, who are more adventurous in exploring coffee varieties and flavors. Thus, the sales value of iced coffee in Africa saw a notable uptick of 19.90% between 2019 and 2023.
Soft Drink Type
Cold Brew Coffee
Iced coffee
Other RTD Coffee
Packaging Type
Aseptic packages
Glass Bottles
Metal Can
PET Bottles
Distribution Channel
Off-trade
Convenience Stores
Online Retail
Specialty Stores
Supermarket/Hypermarket
Others
On-trade
Country
Egypt
Nigeria
South Africa
Rest of Africa
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Africa Ready to Drink Coffee Market Size Summary

The Africa Ready to Drink Coffee Market is experiencing significant growth, driven by the increasing demand for convenient beverage options among young and middle-aged professionals. This trend is particularly pronounced in urban areas, where rapid urbanization is contributing to a shift in consumer preferences towards ready-to-drink coffee products. The market is characterized by a diverse range of offerings, including cold brew coffee, which is gaining popularity due to its innovative infusions and premiumization. Young consumers, especially millennials and Generation Z, are exploring artisanal and specialty iced coffee varieties, further fueling market expansion. The growing middle class and a rising appreciation for high-quality coffee profiles are also contributing to the market's robust growth trajectory.

South Africa and Egypt are key markets within the region, with South Africa witnessing a transformation in coffee consumption patterns due to increased disposable incomes and a demand for specialty coffees. Egypt, on the other hand, is emerging as the fastest-growing market for ready-to-drink coffee, driven by the popularity of cold brews and single-origin beans. The market is fairly consolidated, with major players like Arla Foods, Keurig Dr Pepper, King Car Group, Nestle, and The Coca-Cola Company dominating the landscape. The introduction of new outlets and innovative products, such as cold brew coffee made from Kenyan Arabica beans, highlights the dynamic nature of the market and the ongoing efforts to cater to evolving consumer tastes and preferences.

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Africa Ready to Drink Coffee Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)

    1. 1.1 Soft Drink Type

      1. 1.1.1 Cold Brew Coffee

      2. 1.1.2 Iced coffee

      3. 1.1.3 Other RTD Coffee

    2. 1.2 Packaging Type

      1. 1.2.1 Aseptic packages

      2. 1.2.2 Glass Bottles

      3. 1.2.3 Metal Can

      4. 1.2.4 PET Bottles

    3. 1.3 Distribution Channel

      1. 1.3.1 Off-trade

        1. 1.3.1.1 Convenience Stores

        2. 1.3.1.2 Online Retail

        3. 1.3.1.3 Specialty Stores

        4. 1.3.1.4 Supermarket/Hypermarket

        5. 1.3.1.5 Others

      2. 1.3.2 On-trade

    4. 1.4 Country

      1. 1.4.1 Egypt

      2. 1.4.2 Nigeria

      3. 1.4.3 South Africa

      4. 1.4.4 Rest of Africa

Africa Ready to Drink Coffee Market Size FAQs

The Africa Ready to Drink Coffee Market size is expected to reach USD 5.88 million in 2024 and grow at a CAGR of 7.40% to reach USD 9.03 million by 2030.

In 2024, the Africa Ready to Drink Coffee Market size is expected to reach USD 5.88 million.

Africa RTD Coffee Market Report Snapshots

Africa Ready to Drink Coffee Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030