beer

Africa Is the Fastest Growing Beer Market in the World

Growth is driven by a rising population, urbanization, and increased GDPs

It seems that in addition to fast food, the beer market in Africa is also on the rise, according to Canadean’s Global Beer Trends Report. Canadean predicts an average growth rate of five percent from 2015 to 2020, surpassing Asia, which is expected to grow at an average rate of three percent in comparison, reports Beverage Daily.

 

Piyumika Jayasena, an analyst at Canadean, says, “This notable growth will be fostered by the flourishing economic parameters such as increasing GDP growth rates, fast growing urbanization and above all the rising population with a working age demographic set to surpass that of China and India.”

Also notable is a shift away from traditional homebrews towards commercially brewed beers and subsequently towards premium brands, which are perceived to be more safe and reliable. Jayasena tells Beverage Daily, “Africa is known for local unregulated ‘homebrews’ and due to its associated health risks, major international brewers are now actively engaged in producing similar products that could compete with the unregulated alcohol market.”

Despite expected growth, challenges exist for the African beer market from lack of infrastructure, political unrest, epidemic outbreaks, and heavy excise duties. It is also important to note that though Africa is predicted to have the largest growth, Asia maintains its status as the highest consumer of beer by volume, with predictions of 900,000 hectoliters in 2020 in comparison to 164,000 hectoliters in Africa.

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