The Beverages Industry in Ghana 2023

Introduction

This report focuses on Ghana’s beverage industry, which includes the manufacture of alcoholic and non-alcoholic drinks and the wholesale and retail beverages market. Traditional drinks remain a large part of Ghanaian culture, but consumers are gradually migrating to branded products. Demand is being driven by the rising urban population and large middle class. Alcoholic beverages revenues are expected to increase at 13% annually until 2026. Wine, cider, and spirits revenues have grown strongly, and bottled and sachet water, and carbonated drinks continue to grow. The continuous depreciation of the local currency, high debt-to-GDP and high inflation present operational challenges to the industry.

Opportunities

An increase in expatriate community. Consumers have become more accommodating of home-grown brands, and continue to migrate from informal home brews to branded beverages. Government incentive policies encourage investment in manufacturing. Growing demand for beverages has increased over the years. Growth of urban and a large middle class population. The African Continental Free Trade Area secretariat is based in the capital Accra, positioning Ghana a strategic partner to promote intra-African trade. The development of ecommerce channels.

Outlook

Guinness Ghana and Accra Brewery said they would continue to invest in their businesses, including their brand, people, and increasing capacity and marketing. Experts believe growth will be driven by consumers shifting from informal to branded beer and by industry players balancing production of premium and lower-priced products. Lower inflation will provide room for growth in the beer sector. Non-alcoholic drinks revenues are projected to grow at an average of 15% a year in the medium term. Increasing disposable income is expected to drive growth of the beverages sector, particularly beer. In anticipation of high demand, companies will continue to invest and innovate in plant and equipment to maintain and increase market share. Economic challenges will persist in 2023, and the Ghanaian cedi is expected to continue to devalue, resulting in high import bills on imported raw materials.

Report Coverage

This report focuses on Ghana’s beverage industry, which includes the manufacture of alcoholic and non-alcoholic drinks, and the wholesale and retail beverages market. It includes information on the state of the sector, traditional and branded beverages, trends, trade, economic and other influences, developments, and notable players. There are profiles of 21 companies, including Coca-Cola Bottling Company of Ghana, Accra Breweries, Guinness Ghana Breweries, Kasapreko, Twellium, GIHOC Distilleries and Voltic.

Strengths

Geographical position of Ghana makes it a gateway and trading hub to West Africa. Local brands have improved in product quality, packaging and marketing. The industry is continuously innovating and engaging in product development. The sector is a beneficiary of substantial investments from international beverage companies.

Threats

Ghana’s increasing debt-to-GDP ratio and inflation affecting its economic performance. Illegal trade in beverages threatens the survival of Ghanaian beverages industry. Potential exposure to commodity prices can affect revenues. Shortages of bottles, not enough returnable bottles coming back. The continuous weakening of the cedi.

Weaknesses

Distribution channels and infrastructure are inadequate. Electricity and water supply is unreliable resulting in low productivity. Most machinery, equipment and inputs are not locally available and have to be imported. Production costs are high. Shortage of qualified professionals with technical skills.