Beer production in 2024 : Africa surpasses all other continents

Beer

Credit Photo : Business Insider Africa

For the first time in history, the African beer market is shaking up the established world order in 2024. Africa, long considered a minor player in the brewing industry, now surpasses all other continents in terms of production. This spectacular reversal is a turning point in the global alcoholic beverage economy, traditionally dominated by Europe and Asia.

Beer consumption in Africa is growing exponentially at 9.5% per year, exceeding the global average of 2.4%. This phenomenon can be explained in particular by the emergence of a growing middle class, the rapid urbanization of the continent, and changing consumption habits. Previously a net importer, the continent is now developing its own brewing industries with surprising vigor.

What are the specific factors that have enabled this rise? Which countries are leading this brewing revolution? And above all, what consequences will this change have on the African economy and the global market? Thus begins a new era for the beer industry, where Africa is no longer content to follow trends, but is creating them.

Africa overtakes Europe and Asia in beer production

Recent figures from the global brewing sector reveal an unprecedented shift: the African market has surpassed European and Asian production for the first time. This development is illustrated by production volumes that reached 320 million hectoliters in 2024, compared to 295 million for Europe and 305 million for Asia.

This phenomenon can be explained in particular by the increase in local production capacity. While beer consumption in Africa is growing at an annual rate of 9.5%, investment in brewing infrastructure has increased fivefold over the last five years. In addition, African breweries have managed to reduce their production costs by 15% through the use of local raw materials.

Demographics also play an important role in this development. With a rapidly growing young population, the continent now has more than 350 million potential consumers aged 18 to 35. This consumer base is an advantage over aging Europe, where consumption has been stagnant for a decade.

At the same time, large international groups have invested heavily in the African market, bringing technology and expertise. Nevertheless, it is local breweries that are experiencing the fastest growth, now accounting for 42% of the continent’s total production.

What factors explain this rise?

Several factors converge to explain the rapid rise of the African beer market. Demographics are a major asset : with a median age of around 19, Africa has a constantly expanding pool of consumers. Unlike saturated Western markets, the potential for growth remains considerable.

Rapid urbanization is also playing a decisive role. More than 40% of Africans now live in urban areas, facilitating access to points of sale and the adoption of new consumption patterns. This trend is accompanied by the emergence of a middle class whose purchasing power is growing steadily by 4.5% per year.

Innovation is another key driver. African breweries have developed formulas tailored to local tastes while reducing their production costs. The use of locally available ingredients such as sorghum and cassava has reduced costly imports of hops and barley.

In addition, economic policies have evolved favorably. Several countries have introduced tax incentives for investors in the agri-food sector, while customs duties on imported beers have increased by an average of 25% since 2020.

Finally, beer consumption in Africa enjoys a positive image, associated with social success and modernity, particularly among younger urban generations who are gradually abandoning traditional beverages in favor of standardized industrial products.

Which African countries dominate production?

The map of African beer production reveals a notable concentration in certain countries that are driving the African market to new heights.

South Africa undoubtedly dominates the rankings with 34% of continental production, thanks to its modern infrastructure and advanced technologies. The country is home to SAB Miller, which became a global player after its acquisition by AB InBev.

Nigeria follows closely behind with 28% of total production, driven by a population of over 200 million. The country has seen its production capacity increase by 18% in two years thanks to massive investments by Nigerian Breweries and Guinness Nigeria.

Ethiopia, the continent’s third-largest producer (11%), benefits from an ancestral brewing tradition that has been modernized by foreign investment. Beer consumption in Africa is growing twice as fast as the continental average.

Kenya and Tanzania complete the top five, accounting for 8% and 6% of African production respectively. These two East African countries have developed local cereal supply chains, thereby reducing their production costs by 30%.

Meanwhile, Egypt and Morocco stand out in North Africa with production geared towards exports, particularly to Europe and the Middle East.

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