A new report by Canadean expects Asia to account for the highest consumption level of beer while Africa will show the fastest growth rates across the globe.
Asia continues to record the highest consumption level according to Canadean's latest Gobal Beer Trends report. Asia is set to grow at an average rate of 3% until 2020 reaching nearly 900 thousand hectolitres, while Africa is forecast to register an average growth rate of 5% from 2015 to 2020. This is in strong contrast to the more mature markets in East and West Europe and North America where 1% or even less is predicted from 2015 to 2020.
The Africa region is anticipated to see an incremental volume increase of over 37 thousand hectolitres by 2020. "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" says Piyumika Jayasena, analyst at Canadean.
South Africa is by far the biggest volume contributor for the region, followed by Nigeria and Angola, while in terms of the per capita consumption Seychelles, Equatorial Guinea and Gabon will take the lead with more than 100 litres by 2020 respectively.
However, as depicted in the following ranking table, it is evident that Zambia is rapidly increasing its consumption volume surpassing 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 consequently towards premium brands. It will further be backed by the booming population in these markets", adds Jayasena. It has been an interesting fact to note that brewers are increasingly engaged in producing more innovative non-malt based products to further enhance the consumer base of the regular beer.
On the other hand this lucrative market is challenged by lack of infrastructure, political unrest in certain countries like Nigeria and Kenya, the outbreak of epidemics such as Ebola virus in 2014, heavy excise duties and so forth. "Yet the region is set to linger its alluring untapped resources, both natural and human, in to becoming the fastest growing beer consumption region in the arena" adds Jayasena.
