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Beverage Industry..
Beverage Industry..
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• There has been an ongoing
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• Cameroon faces high • COVID-19
S has a
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• Artificial intelligence
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• Safety standards have to be
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• Sustainability has become
conflict between Ambazonia inflation due to global significant influence on strengthens the supply followed by companies in central to the operations
and the Cameroonian value chain the market. There was a chain operations of the food and beverage of different industries.
government in the North disruptionscoming from restriction on social industries. Such industry and they are
West and South West COVID-19 pandemic and gathering that led to a technology facilitates required to produce quality • Companies now use
region of Cameroon. Ukraine-Russia war, change in the spending manufacturers to keep products that do not cause plastic bottles which add
affecting economic pattern o consumers as track of the changes harm to the consumer. In to the environmental
• Production and operational recovery and highlighting people spent less on the occurring in the market. addition, the companies degradation.
activities are forced to domestic structural beverages. have to mention the
dwindle due to the civil vulnerabilities. • The integration of robots ingredients and other • Even though recycling
unrest. Exports of beverages • The global industry is as part of the details about the product on has been adopted as a
and other major products • Foreign exchange constantly at odds with manufacturing and the packaging as a legal means to minimize the
dropped drastically. regulations have been public opinion and it is packaging process helps requirement. waste materials, the high
tightened; Obtaining likely to witness an companies to efficiently volume of bottles and
• Unemployment has soared currency transfer opposition of sales. This perform those activities. • The industries are regulated cans produced every year
following the unrest in the authorization has become is majorly coming from by the copyright laws in add to the litter.
country. So, people with no particularly complicated moral, health and • The e-commerce platform case of packaging as well
job can not afford to buy religious perspectives. has helped businesses to as the use of promotional • Greenhouse gas
beverages. • The significant enhance its market reach content. emissions are also a
transportation cost of raw • The Cameroon challenge being faced by
materials and finished participates in major • Employment laws are companies as the
products is hitting hard on sports events. This is a relevant in the industry and production and recycling
the industry. driver of growth for the company has to lead to emissions.
higher sales of different maintain compliance with
beverages. health and safety standards.
Global Beverage Market Outlook
• The beverage industry comprises of both hot and cold beverages that are consumed by people of varying ages across the
globe.
• The global beverage market was valued at $1.45 trillion in 2020, and is projected to grow at CAGR of 6.6% from 2021 to
2028, and this projection is due to an increase in the promotional and advertisement strategies by various manufacturers
operating in the market.
• The alcoholic beverage segment accounted for the largest share of the market in 2020 with beer being the most being the
most consumed alcohol beverage worldwide.
• The market is witnessing an upsurge in the demand for low alcohol by volume beverages, specifically among the millennial
and the baby boomer generations. The sales of low-alcohol beverages have been rising, with consumers’ growing interest in
health-consciousness and availability of a wider product portfolio with improved taste, aiding consumer to easily select
product as per their preference.
• The non-alcoholic beverages, including carbonated soft drinks, bottled water being the most consumed non-alcoholic
beverage.
Global Beverage Market Outlook
• The COVID-19 pandemic has had a significant inpact on the beverage industry with changes in consumer behvior and
supply chain distruptions leading to changes in slaes and distribution channels. However, The market grew exponentially
post the COVID-19 pandemic due to the opening of new bars, pubs, and restaurants and increased in-home consumption
• The industry is increasingly focused on sustainability with companies implementing initiatives to reduce their
environmental impact including reducing platic packaging, increasing the use of recycled materials and implementing
sustainable sourcing practices.
• The industry is expected to continue to grow with increasing demand for healthy and functional beverages as well as the
emergence of new trends and technologies.
• Major players in the industry include Coca-cola, PepsiCo, Anheuser-Busch IN Bev, Heineken and Nestele, among other
others
• Africa accounts for 16% of the world’s population and barely 5% of the world’s alcoholic beverage drinkers .
• Revenue in the alcoholic drinks market is expected to grow annually by 12.16% (CAGR 2022–2025).
• The Africa non-alcoholic beverages market size reached US$ 82.8 Billion in 2022. Looking forward, IMARC Group expects
the market to reach US$ 141.4 Billion by 2028, exhibiting a growth rate (CAGR) of 9% during 2023-2028.
• Africa has a minor share of the global beer market, consuming 147 million lcres compared to 632 million litres in Asia, 499
million litres in Europe, and 328 million and 259 million liters, respectively, in South and North America.
• In 2021, Cameroon ranked 95th in beverage imports, surpassed by Angola with imports of $65.1 million.
• Exports of alcoholic drinks from Cameroon are set to reach $6 million by 2026. This figure is a decrease of 3.8% annually
from the current level of $7.6 million in 2021.
• Since 2000, exports have decreased by an average of 5.3% per year while imports have increased by an average of 5.6%
per year.
• Imports of alcoholic drinks to Cameroon are projected to hit $74 million by 2026. This amount is an increase of 2.2%
annually over the current level of $65.1 million in 2021.
Source: ReportLinker
Alcoholic Beverage Market Outlook in Africa
• The Africa Alcoholic Beverage Market is expected to grow from 2020-2026 due to disposable income, lifestyle
improvements, occasional drinking acceptance, urbanization, and industry innovation. Premium products and premium
flavors are also expected to contribute to market growth.
• The market is expected to grow due to hypermarkets, branded alcoholic drinks preferences, and foreign investments in the
hospitality sector. Additionally, construction of restaurants and bars in South Africa and Kenya will further stimulate growth.
• The market has been accomplishing tremendous growth over the years. There are some of the latest developments in the
market which include the expansion of local breweries which meets the growing demand for locally brewed alcoholic
beverages.
• The changing consumer preferences compel many companies to introduce new product categories such as low-alcohol
beverages, craft beers, and flavoured spirits.
• With growing demand from international markets, alcoholic beverage companies in Africa are increasing their exports to
other countries as well. The craft beer market in Africa is growing, with many local and international brewers setting up
production facilities in the region.
• Africa Alcoholic Beverage Market is anticipated to gain momentum in the global alcoholic beverages market on the back of
the premiumization of the beverage industry, which is expected to find prosperity in the coming years.
Source: 6W Research
Non-Alcoholic Beverage Market Outlook in Africa
• The Africa non-alcoholic beverages market exhibited a moderate growth rate during 2015-2020 and it is expected to
continue its moderate growth during the next five years.
• The market is primarily driven by the growing preference for ready-to-drink beverages among the masses.
• With rapid urbanization, hectic lifestyles led by the people, and rising per capita income levels, sales of refreshing non-
alcoholic beverages have increased significantly.
• Non-alcoholic beverages are drinks that mostly consists of fruit juices, sports drink, energy drink, bottled water, carbonated
drinks and ready-to-drink beverages. These drinks are either alcohol-free or consist of less than 0.5 percent of liquor
volume.
PepsiCo Inc
Diageo Plc
Bargaining
Bargaining Competitive
Power of Sellers Rivalry Power of Buyers
•Health and wellness: Consumers are increasingly looking for healthier options, such as low-sugar, organic, and non-GMO beverages. This has led to a rise in popularity
of functional beverages, such as energy drinks, teas, and waters with added vitamins and minerals.
•Sustainable Packaging: Consumers are increasingly seeking eco-friendly packaging options, including glass bottles, aluminum cans, and biodegradable materials.
Companies are adopting recycling, biodegradable, light-weighting, reusable, and closed-loop recycling to reduce environmental impact, reduce carbon footprint, and
promote circular economy.
•Non-alcoholic alternatives: The non-alcoholic alternatives beverage industry is experiencing significant growth due to growing interest in moderation and health. Low-
alcohol and alcohol-free options, fermented beverages, functional beverages, plant-based alternatives like almond milk, ready-to-drink (RTD) options, zero-sugar and low-
sugar options, sparkling water, and artisanal flavors are among the most popular. These beverages offer a healthier alternative to soda. Additionally, the growth of artisanal
sodas, non-alcoholic cocktails, and mocktails is driven by consumers seeking unique and authentic experiences.
•Specialty and craft beverages: Consumers are always on a lookout for distinctive and authentic experiences and therefore are always eager to try something new. This in
turn is increasing the consumption of craft and specialty beverages, such as craft beer, hard seltzers, and artisanal sodas.
•Online Sales: The pandemic has led to a surge in online beverage sales, with companies investing in e-commerce platforms to reach customers more directly. These trends
include e-commerce platforms, personalized recommendations, social media and influencer marketing, mobile optimization, contactless delivery, and direct-to-consumer
(D2C) sales.
•Flavor: Consumers are becoming more adventurous in terms of their taste preferences and are looking for beverages with global flavors and ingredients. This has led to an
increased popularity of international beverages such as matcha, turmeric, and chai.