Kenya Food and Drink Report Q3 2014

Kenya Food and Drink Report Q3 2014

Published: May 2014
Publisher: BMI Research
Product ref: 208301
Pages: 65
Format: PDF
Delivery: Immediate download

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The outlook for Kenya's food and drink industry continues to be positive, with strong growth expected over the short-to-medium term. The success of premium-chain coffee shops highlights the likelihood that premiumisation will play a major part in the growth of many segments of the Kenyan food and drink industry.

Despite this broadly positive outlook, we believe that optimism surrounding the African consumer story requires some nuance. Firstly, given the economic profile of most countries in the region, we believe that the consumer market will remain segmented. The bulk of demand will come from Africa's 'middle class', the definition of which captures consumers in lower income brackets more so than in more developed markets. This middle class will demand high-volume, low-margin goods rather than the discretionary goods that are often associated with consumption booms in the more developed markets. That is not to say that there will not be demand for higher-end goods from Africa's political and economic elite, but this pool of consumers is likely to remain small over the next decade.

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Related research categories

By sector: General drinks

By market: Kenya (in Africa)

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