Market Forecast By Product Type (Whole-Bean, Ground Coffee, Instant Coffee, Coffee Pods and Capsules), By Distribution Channel (On-Trade, Off-Trade) And Competitive Landscape
Product Code: ETC177489 | Publication Date: Jan 2022 | Updated Date: Aug 2024 | Product Type: Market Research Report | |
Publisher: 6Wresearch | No. of Pages: 70 | No. of Figures: 35 | No. of Tables: 5 | |
Kenya Coffee market currently, in 2023, has witnessed an HHI of 2256, Which has increased slightly as compared to the HHI of 2212 in 2017. The market is moving towards moderately competitive. Herfindahl index measures the competitiveness of exporting countries. The range lies from 0 to 10000, where a lower index number represents a larger number of players or exporting countries in the market while a large index number means fewer numbers of players or countries exporting in the market.
Report Name | Kenya Coffee Market |
Forecast period | 2024-2030 |
CAGR | 4.5% |
Growing Sector | Beverages |
Kenya Coffee Market report thoroughly covers the market by bean types, coffee types, distribution channel and applications. The market report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.
Kenya Coffee Market is experiencing significant growth and projected to attain more growth in the coming years due to its high-quality Arabica coffee, distinguished by its vibrant acidity and full-bodied flavour. Situated in the favourable altitudes of the Ethiopian Highlands, Kenyan coffee is often grown in regions such as Nyeri, Kericho, and Bungoma, where rich volcanic soil and optimal climatic conditions contribute to its unique profiles. The market is characterized by a combination of cooperative societies and private growers, which support smallholder farmers while promoting sustainable practices.
According to 6Wresearch, Kenya Coffee Market size is expected to grow at a CAGR of 4.5% during 2024-2030. Several factors are driving the growth of Kenya Coffee Market such as the global surge in demand for specialty coffee is propelling Kenyan producers to enhance their quality and diversify their offerings. Consumers are increasingly seeking unique Flavors and artisan coffee experiences, which align with the distinct profiles of Kenyan coffee. Apart from this, the growing emphasis on sustainable and ethical farming practices is attracting environmentally conscious consumers, encouraging more farmers to adopt organic methods and obtain certifications. Additionally, technological advancements in farming and processing techniques are improving productivity and quality, enabling smaller growers to compete effectively in both local and international markets.
However, Kenya Coffee Market faces few restraints such as the vulnerability to climate change, which poses risks such as altered rainfall patterns and increased temperatures, potentially affecting coffee yields and quality. Furthermore, the dependency on smallholder farmers means that issues like poverty and limited access to financing can hinder their ability to invest in better farming practices or technology. Additionally, fluctuations in global coffee prices can create economic uncertainty, making it difficult for producers to maintain stable income levels. Apart from this, competition from other coffee-producing countries with lower production costs may dilute Kenya's market share.
Key players include Kenya Coffee Board, Coffee Producers Association of Kenya, Neumann Kaffee, Dormans Coffee, Peaberry. These companies are known for their coffee production with high quality standards and facilitate industry research.
Kenya Coffee Market is growing and governmentβs regulation and policies are helping in extension of the market. One key initiative is the Coffee Sector Reform Programme, which seeks to improve the quality of coffee produced by investing in research and development, providing training for farmers, and promoting best agricultural practices. Additionally, the government has established the National Coffee Stakeholders Forum to facilitate dialogue among producers, processors, and exporters, ensuring that all voices are heard in the policy-making process. Furthermore, financial support schemes, such as access to low-interest loans for smallholder farmers, are being implemented to empower them to invest in modern farming techniques and equipment.
The future of Kenya Coffee Market looks promising due to increasing emphasis on sustainability, we can expect a higher adoption of eco-friendly farming methods among smallholder farmers, leading to more robust certifications that appeal to environmentally conscious consumers. Additionally, the rise of digital technologies will likely enhance the efficiency of coffee production and supply chain management, enabling producers to respond more rapidly to market demands. As specialty coffee continues to gain traction, innovative flavour profiles and unique processing techniques will become pivotal in differentiating Kenyan coffee in a competitive landscape. Furthermore, a stronger focus on building direct relationships between farmers, roasters, and consumers will enhance transparency.
According to Ravi Bhandari, Research Head, 6Wresearch, Arabica beans are expected to see sustained growth in coming years due to the global demand for specialty coffee continues to rise. Consumers' increasing inclination towards unique and high-quality coffee experiences positions Arabica as a frontrunner in market expansion.
Coffee pods and capsules are projected to attain more growth in coming years due to advancements in sustainable packaging and a broader shift towards convenience in coffee consumption. Ground coffee, however, remains staple, particularly in the home brewing sector.
Online channels are likely to experience the most significant growth in the coming years due to convenience of shopping from home, coupled with the increasing popularity of subscription models for specialty coffee, appeals to a tech-savvy consumer base seeking tailored experiences.
Ready-to-drink (RTD) coffee are projected to attain highest growth in coming years due to the increasing demand for convenience and on-the-go consumption. This segment appeals particularly to busy professionals and younger demographics who prefer ready-made solutions without sacrificing quality.
The report offers a comprehensive study of the subsequent market segments:
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 Kenya Coffee Market Overview |
3.1 Kenya Country Macro Economic Indicators |
3.2 Kenya Coffee Market Revenues & Volume, 2020 & 2030F |
3.3 Kenya Coffee Market - Industry Life Cycle |
3.4 Kenya Coffee Market - Porter's Five Forces |
3.5 Kenya Coffee Market Revenues & Volume Share, By Product Type, 2020 & 2030F |
3.6 Kenya Coffee Market Revenues & Volume Share, By Distribution Channel, 2020 & 2030F |
4 Kenya Coffee Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.3 Market Restraints |
5 Kenya Coffee Market Trends |
6 Kenya Coffee Market, By Types |
6.1 Kenya Coffee Market, By Product Type |
6.1.1 Overview and Analysis |
6.1.2 Kenya Coffee Market Revenues & Volume, By Product Type, 2020 - 2030F |
6.1.3 Kenya Coffee Market Revenues & Volume, By Whole-Bean, 2020 - 2030F |
6.1.4 Kenya Coffee Market Revenues & Volume, By Ground Coffee, 2020 - 2030F |
6.1.5 Kenya Coffee Market Revenues & Volume, By Instant Coffee, 2020 - 2030F |
6.1.6 Kenya Coffee Market Revenues & Volume, By Coffee Pods and Capsules, 2020 - 2030F |
6.2 Kenya Coffee Market, By Distribution Channel |
6.2.1 Overview and Analysis |
6.2.2 Kenya Coffee Market Revenues & Volume, By On-Trade, 2020 - 2030F |
6.2.3 Kenya Coffee Market Revenues & Volume, By Off-Trade, 2020 - 2030F |
7 Kenya Coffee Market Import-Export Trade Statistics |
7.1 Kenya Coffee Market Export to Major Countries |
7.2 Kenya Coffee Market Imports from Major Countries |
8 Kenya Coffee Market Key Performance Indicators |
9 Kenya Coffee Market - Opportunity Assessment |
9.1 Kenya Coffee Market Opportunity Assessment, By Product Type, 2020 & 2030F |
9.2 Kenya Coffee Market Opportunity Assessment, By Distribution Channel, 2020 & 2030F |
10 Kenya Coffee Market - Competitive Landscape |
10.1 Kenya Coffee Market Revenue Share, By Companies, 2023 |
10.2 Kenya Coffee Market Competitive Benchmarking, By Operating and Technical Parameters |
11 Company Profiles |
12 Recommendations |
13 Disclaimer |