Africa set to eclipse Asia in beer – research
While Asia will boast the highest consumption level for beer in the coming years, Africa is set to provide the strongest drivers for growth, according to recent research.
In its 'Global Beer Trends 2015' report, released late last year, Canadean has forecast that Africa will record an average growth rate of 5% from 2015 to 2020. This performance contrasts with the more mature markets in East and West Europe and North America, where 1% or even less is predicted from 2015 to 2020.
Asia, meanwhile, will grow at an average rate of 3% until 2020, reaching around 900,000 hectolitres.
Emerging Africa markets will drive growth
The Africa region is anticipated to see an incremental volume increase of over 37,000 hectolitres by 2020. Canadean analyst Piyumika Jayasena, said: "This notable growth will be fostered by the flourishing economic parameters such as increasing GDP growth rates, fast growing urbanisation and, above all, the rising population with a working age demographic set to surpass that of China and India."
Top 10 Africa Beer Markets and Ranking - 2020(F) versus 2015(F)
South Africa is by far the biggest volume contributor for the region, followed by Nigeria and Angola. In terms of per-capita beer consumption, Seychelles, Equatorial Guinea and Gabon will take the lead, with all three forecast to hit 100 litres each by 2020.
Zambia, meanwhile, is rapidly increasing its consumption volumes, and is expected to surpass Mozambique, Congo (Brazzaville), Ivory Coast, Zimbabwe and Burundi by 2020. Kenya and Ethiopia are also climbing the volume ladder.
"The consumption growth in these markets will be stimulated by the consumer migration from home-brewed to more commercially-brewed beers and subsequently towards premium brands," notes Jayasena. "It will further be backed by the booming population in these markets."
However, of concern on the continent will be the lack of infrastructure, political unrest in certain countries like Nigeria and Kenya, the outbreak of epidemics such as Ebola virus in 2014, and heavy excise duties. Despite this, Jayasena notes: "The region is set to exploit its untapped resources, both natural and human, to become the world's fastest-growing beer consumption region."
- Interview Berry Bros & Rudd CEO Dan Jago - Part II
- Interview Berry Bros & Rudd CEO Dan Jago - Part I
- The threat of excess choice in beer is over-stated
- Key trends for the spirits sector in 2017 - Focus
- Coca-Cola Amatil FY 2016 - results data
- Pernod Ricard's Method and Madness Irish whiskey
- Diageo faces US$68m payout after SAP court loss
- Wm Grant names Victor Jerez business director
- Bacardi takes stake in Ilegal Mezcal
- Premium to counter mainstream in gin - research
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Global gin insights - market forecasts, product innovation and consumer trends