Global brewers' expansion to boost African agriculture

Subject

Outlook for the brewery industry in sub-Saharan Africa.

Significance

Sub-Saharan Africa (SSA) is home to one of the fastest-growing beer markets in the world, albeit from a low base. Following the lead of SABMiller, which earned 14% of its global beverage profits from SSA in 2013 (excluding South Africa), large international brewers are implementing strategies to supply low-cost products tailored to local tastes and contexts.

Impacts

• Increased alcohol consumption could drive an upswing in lifestyle-related diseases, creating demand for specialist medical care.
• Efforts to reduce alcohol consumption in South Africa through strict licensing may result in lost income for slum-based home brewers.
• Rising demand for beer will vary geographically -- with increases concentrated in non-Muslim states and certain sub-national regions.