Demographic Trends Will Fuel Alcohol Market In Africa

The potential for growth in alcoholic drinks sales across many African countries is well known. Using BMI's demographic and macroeconomic forecasts, we highlight below some of the African countries that could experience the strongest growth in the alcoholic drinks market. In our view, there are three key trends that will affect the alcoholic drinks industry on the continent in the future: growth of the 18+ population, growth of the urban population and per capita income growth.

As is shown by the charts below, the African alcohol drinks industry has massive potential. Listed multinational alcoholic beverage firms SABMiller, Diageo and Heineken are the three best-established companies in the continent. These three, along with privately owned French firm Castel, operate in a number of African countries through subsidiaries. Together they have significant exposure to the continent; however, there remain countries with great prospects that are as yet untapped.

One such example is Niger. The country has not seen multinational interest from the major beer companies but is forecast to achieve phenomenal demographic growth. Just one major brewery exists in Niger: Société des Brasseries et Boissons Gazeuses du Niger, which has an annual production capacity of 78,000 hectolitres.

Significant Opportunity From Demographic Trends
Select African Countries - Forecast % Change In 18+ Population, 2013-2030 (LHS) & 2013-2050 (RHS)

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Related sectors of this article: Food & Drink
Geography: Africa, Global

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