By: Muralidhar Padmanaban -- Senior Research Analyst, Rigid Packaging
14 March, 2018
The African beer market accounts for about 7–8 percent of global beer consumption and is expected to grow at a rate of 5–6 percent CAGR from about 164,000 hectoliters in 2016 to about 201,000 hectoliters in 2021.
Glass has been predominantly used in packaging beer; this has been primarily due to its availability and the need to access mass-market segments by utilizing the available distribution networks in Africa. However, over the last four to five years the popularity of beverage cans has been increasing in growing beer markets such as South Africa, Nigeria, Kenya, Angola, etc. One key reason driving this is the changing consumption patterns of younger consumers and the growing middle class population. In addition, beer cans have helped improve penetration rates in the market and support this growing demand.
The African market for beverage cans is forecasted to have strong growth of about 4– 5 percent CAGR (2016–2021) as opposed to glass, which is expected to have a growth of about 2.5–3.5 percent CAGR during the same period. This increase in demand is expected to cause supply constraints in Africa, as the current installed capacities are only about 4–5 billion cans, as opposed to a demand of 7–8 billion cans expected in 2021.
This whitepaper analyzes the developments in the beverage can market in Africa to identify if the existing supply base is equipped to meet the forecasted heavy demand. The study also examines alternative solutions to cater to the African beverage can demand over the next five to ten years.
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