Refreshing hot drinks are one of the favourite beverages of people in Algeria. This is one of the main reasons why hot drinks in Algeria have seen sone significant growth in past few years, despite the increasing inflation. Algerian economy depends heavily on oil and with falling oil prices; the economy of Algeria is in turmoil. This has resulted in increase in inflation and downfall of disposable income. Despite all these factors, hot beverages in Algeria are seeing some significant growth in sales.
According to the market research report “Hot Drinks in Algeria“, the retailing in Algeria has seen quite a few developments in past few years, with modern stores and internet retailing gaining market share. With the improvement in retailing, supply of hot beverages has improved. Along with this, growing population, increase in number of working professionals, changing food habits, changing consumer lifestyle, increasing urbanisation and increase in commuting are few other factors, which have helped the hot beverages market grow in Algeria. More and more coffee shops are tea parlous are coming up in urban areas.
Hot beverages market is composed of coffee, tea and other hot drinks, but coffee and tea are the major components of this market. Coffee is leading the market at present, but the market for coffee has matured in Algeria and therefore, seeing very slow growth rates in past few years. Tea, on the other hand, is growing more rapidly and has seen some significant growth in its sales in past few years. As disposable income with Algerians is increasing, people that are more affluent are demanding better quality drinks. To satisfy this, coffee companies are coming up with luxury coffee shops and various expensive qualities of coffee.
The hot beverages market in Algeria is highly fragmented. Eurl Facto is leading the hot beverages market in Algeria because of it amazing performance in the hot coffee market. Eurl Facto offers various varieties of coffee, is widely available and is most affordable. Nestle SA is ranked second since it has performed strongly in fresh coffee and other hot beverages segment. Nestle is growing very rapidly and is expanding its product base by offering various products like hot chocolate, instant coffee and many more. Various brands are introducing new products in the market on regular basis to attract more customers. Since competition is intense, companies need to evolve themselves on regular basis to increase their market share.
Hot beverages market in Algeria is growing positively and is expected to show similar growth in coming years. However, there is one other side also. With depreciation of Algerian currency and increasing inflation, the unit price of coffee and tea is expected to rise, which can affect the sales negatively. In addition, with increase in exports of these products, availability might also be an issue in near future. Nevertheless, as of now, this market segment is performing well and is expected to earn good returns for the market players.
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Ankur Gupta, Head Marketing & Communications
ankur [@] kenresearch.com