Alcohol demand will rise in East Africa

Significance

Several of Africa’s largest alcohol markets are in East Africa. Changing consumer tastes, economic growth and government policies are shaping the landscape of the sector. Many of the world’s largest players in the industry are active in the region. Africa and the Middle East could lead growth in the global beer market in the coming years.

Impacts

• Urbanisation and population growth will offer attractive markets for investment.
• However, reversals in economic growth among East African states would halt expansion in the sector.
• South Africa’s growing craft beer market could find other markets in the region.
• While Kenya’s beer market is attractive, the government’s tax policy will give investors pause.