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A journey through the beverage industry in Africa
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Saturday, 27 May, 2023, 08 : 00 AM [IST]
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T Ranjani
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Market definition
The e-commerce market sector - The commercial (B2C) online sale of alcoholic, non-alcoholic, and hot beverages is referred to as beverage sales. For instance, this market sector includes the digital channel sales of tea, coffee, juices, soft drinks, beer, spirits, and wine. Internet retailers like Amazon.com and JD.com as well as specialty grocery and beverage retailers like Flaschenpost.de in Germany, FreshDirect.com in United States, tesco.com in UK, BigBasket.com in India, and Boxed.com in the United States are among the most well-known participants in the e-commerce beverage market. This market group does not include beverage sales related to consumption away from home. All monetary amounts are expressed in terms of the annual gross revenue and exclude shipping expenses.
Out-of-scope versus in-scope
In-Scope - Hot beverages (tea, coffee, cocoa), alcoholic beverages (beer, wine, spirits), and non-alcoholic beverages (soda, juices, mineral water) are all acceptable beverages.
The top 15 drinks in Africa for all religions
The continent of Africa is magnificent, and so are its beverages! We're going to examine the most well-liked, extraordinary African beverages. Beverages are an element of the continent's enticing social culture.
People meet up over a few drinks, whether they are alcoholic or not, which contributes to Africa's vibrant social culture. People will adore everything the continent has to offer from coffee to wine.
What beverage is most favoured in Africa?
Although there are numerous popular drinks in Africa, tea is arguably the most consumed beverage there. The beverage of choice across the continent is tea. Tea leaves, milk, sugar, and water are used to prepare them. For flavour, they may add spices like cardamom or ginger. In certain other places of Africa, such as South Africa and Ethiopia, coffee is also quite common. Alcoholic beverages, juices, and sodas are all very popular.
What is an African Traditional Drink?
Traditional African beverages come in a wide variety, each with a distinctive flavour and background. The most popular African beverages include, among others, Karkadé, Maas, and Palm wine.
However, while it's there as will indulge in some of the most well-liked African beverages listed below:
- Karkadé—This pleasant beverage, made from hibiscus blossoms, is well-liked in Sudan and other regions of North Africa.
- Munkoyo - Made from maize, this non-alcoholic beverage is well-liked in Zambia and other regions of Southern Africa.
- Mate - Made from the leaves of yerba mate, a South American native holly species, mate is a traditional infusion.
- Ghana- Wine makes up 30 % of alcohol consumption and beer makes up 9.7 %; 2.9% comes from spirits and 57.3 % comes from other types of alcohol.
- Boukha - A distilled spirit made from figs.
- Oshikundu - By soaking mahango overnight, fresh beer is made.
- Dawa - Made with vodka, honey, lime juice, and ice, the Dawa drink is a favourite in Kenya.
- Amasi - Made from cow's milk, culture, and enzymes, Amasi is a well-known fermented milk beverage in South Africa.
- Pinotage- Made from a grape variety that is indigenous to South Africa, Pinotage is a sort of red wine.
- Botswana is home to the beer brand Jabula-Jabula.
- Mazagran – This kind of coffee is well-liked in Algeria and Morocco.
- Rooibos Tea - Rooibos tea is a common beverage in Africa.
- Maghrebi Mint Tea: This herbal tea kind is well-liked in Morocco and Algeria.
- African coffee, often known as Ethiopian coffee, is a kind of coffee produced in Ethiopia and is highly well-liked all over the world.
- Palm Wine - Made from palm tree sap, this drink is well-liked throughout most of Africa. It generally tastes sweet and is consumed alone or with meals.
Impact of the Beverage Industry on Employment:
The growth of the beverage industry has had a significant impact on employment. The industry employs a large number of people, including farmers, suppliers, distributors, wholesalers, retailers, and transporters. The sector has also promoted entrepreneurship among Africans by providing opportunities for people to start their beverage companies, create employment and contribute to economic growth.
Moreover, the beverage industry in Africa has also promoted innovation and creativity among young Africans, particularly in the development of locally-produced and culturally relevant beverages such as palm wine, sorghum beer, and fruit juices.
Challenges Faced by Beverage Industry in Africa:
Despite the growth and development of the beverage industry in Africa, the sector faces several challenges. One of the main challenges is the lack of access to finance and credit facilities, which limits the ability of small beverage companies to expand and increase production. High production costs, poor infrastructure, and regulatory barriers have also slowed down the growth of the sector in some areas.
Exploring the Opportunities in the Beverage Industry in Africa
The beverage industry in Africa presents a wealth of opportunities that are yet to be fully explored. Africa is a vast continent with a diverse population of over 1.3 billion people, which represents a significant market for the beverage industry. The continent's GDP growth rate is projected to be above 4% annually, presenting an attractive investment opportunity for local and international players in the beverage industry.
One of the major opportunities in the African beverage industry is the growing demand for non-alcoholic beverages. The trend towards healthier lifestyles and the need to combat health issues such as obesity, diabetes, and hypertension has increased the demand for non-alcoholic beverages. Beverages such as fruit juices, smoothies, and functional drinks, which cater to this demand, are becoming very popular in Africa.
Another opportunity is the growing popularity of alcoholic beverages, especially beer. According to the World Health Organization (WHO), the per capita consumption of beer in Africa increased by 55.7% between 2000 and 2016. The region also has the fastest-growing young adult population in the world, presenting a significant market for alcoholic beverages targeting this demographic.
The beverage industry in Africa is also seeing increased government support and investment in infrastructure. Many African countries are improving their transport and logistics systems to facilitate the transportation of raw materials and finished products. This investment is making it easier for beverage companies to access new markets and expand their reach.
Furthermore, with the rise of e-commerce platforms in Africa, consumers are becoming increasingly connected and savvy, leading to a growth in online purchases. Beverage companies can leverage this trend to expand their reach and increase sales by strategically marketing their products on these platforms.
To capitalise on these opportunities, beverage companies need to be mindful of the unique challenges that face the African market. One of the key challenges is poor infrastructure, which can result in high transportation costs. Additionally, the price sensitivity of many African consumers means that beverage companies must carefully balance pricing with quality to remain competitive.
The beverage industry in Africa has played a significant role in the economic development of the continent. The sector has stimulated employment, promoted innovation, and contributed to the diversification of the African economy. Therefore, policymakers, investors, and stakeholders in the African economy need to collaborate and address the challenges facing the sector to ensure that the beverage industry continues to contribute to the growth and development of the continent.
In conclusion, the African beverage industry presents a wealth of opportunities for beverage companies. With the right strategies in place, companies can penetrate the market and take advantage of the growing demand for both non-alcoholic and alcoholic beverages. However, companies must remain mindful of the unique challenges that face the African market and develop effective strategies to navigate these challenges.
(The author is assistant professor, Department of Nutrition and Dietetics, K.S.R. College of Arts and Science for Women, Tamil Nadu. She can be reached at ranjanithirumaliaraaja20@gmail.com)
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