Beyond projections, Africa’s beverage industry is entering 2026 with confidence built on concrete growth in the continent. From Lagos to Nairobi, Casablanca to Cape Town, what people drink is changing, driven by health consciousness, premiumisation and innovation across both alcoholic and non-alcoholic segment.
Africa’s non-alcoholic beverages sector is projected to reach $124 billion in revenues in 2025, serving 83.86 billion litres across the continent, according to Statista. The alcoholic beverages market shows similar momentum: Africa’s beer market alone reached $44.08 billion in 2024 and is forecast to hit $74.65 billion by 2033, growing at 6.02% annually.
Regional variations are stark. West Africa’s alcoholic beverages market stands at $13.25 billion in 2025, expected to reach $22.21 billion by 2035. East Africa recorded $26.1 billion in alcoholic beverage sales in 2024, while South Africa holds the largest single-country market share at 24.7% of Africa’s beer consumption.
“Bottled water of all kinds is a large and growing category, as are juices, teas/herbal drinks, energy drinks and drinks with functional ingredients,” Iddah Asin, Executive Director, International Council of Beverages Associations (ICBA) Africa, notes.
Non-alcoholic beverages are claiming the main stage. The Middle East and Africa functional beverages market is valued at $7.21 billion in 2025, projected to reach $9.75 billion by 2030, with energy drinks commanding 43.22% of the segment. Nigeria leads growth with a projected 14.14% compound annual growth rate in energy drinks, having consumed 56.15% of the continent’s traditional energy drinks volume in 2023.
South Africa’s functional beverages industry generated $1.22 billion in 2022 and is forecast to reach $1.78 billion by 2027, growing at 7.9% annually.
The growth reflects that consumer prioritise health, convenience, and wellness-oriented hydration.
Alcoholic beverages remain formidable, but consumption patterns are evolving. Craft breweries represent the fastest-growing segment, expected to grow at 11.6% annually from 2025 to 2033. Macro breweries still control over 75% of licensed retail and wholesale markets, according to the African Beverage Industry Report, with AB InBev, Heineken, and SABMiller dominating through scale and distribution reach.
Premium trends are visible across categories. In Nigeria, where 70% of the population is under 30, branded beer sales rose 8% in 2024. Ghana’s craft scene has attracted investment, with disposable incomes rising 7% yearly in urban centres like Accra. Heineken and AB InBev have invested over $500 million in Nigeria alone over the past five years, signalling long-term commitment.
However, informal alcohol production remains a challenge, capturing 40-60% of market share in rural areas. In Nigeria, home-brews undercut branded prices by 30%, creating persistent competition for formal producers.
Health Policy Shaping Market
“The success of South Africa’s sugar tax demonstrates that well-designed policies can reshape consumption patterns without destroying markets, purchases dropped 29%, but the industry adapted through reformulation rather than collapse.”
Sugar taxation has arrived. South Africa introduced its Health Promotion Levy in 2018, applying a tax of 0.021 ZAR per gram of sugar on drinks exceeding 4g per 100ml. The impact has been measurable: purchases of carbonated drinks fell by 29% in urban areas, with sugar content in these purchases dropping 51% through both consumer behaviour change and product reformulation.
“The success of South Africa’s sugar tax demonstrates that well-designed policies can reshape consumption patterns without destroying markets, purchases dropped 29%, but the industry adapted through reformulation rather than collapse.”
According to a 2024 study, sub-Saharan Africa has 80% population coverage for sugar taxes, the second-highest globally after South Asia (98%) and Latin America and the Caribbean (81%). Yet implementation remains uneven. Nigeria’s 45% excise duty on alcoholic beverages contrasts with more targeted approaches elsewhere, reflecting diverse regulatory philosophies across the continent.
Beverage companies are responding. The International Council of Beverages Associations (ICBA) members have prioritized “reduced sugar content, low- and no-calorie beverage options” alongside packaging innovation focused on recycling and reduced plastic usage.
Innovation Rooted in Place
Perhaps the most compelling development is the rise of authentically African brands and ingredients. Soul Barrel Brewing’s “Wild African Soul”, a collaboration with Tolokazi Beer, won Best Beer in Africa at the 2025 African Beer Cup. The beer blends traditional sorghum umqombothi with modern farmhouse ale techniques, combining European barrel-ageing with African wild fermentation.
The African Beer Cup introduced a Speciality African Beer category in 2024 specifically for beers using traditional ingredients like sorghum, millet, and fonio rather than malted barley. Botswana’s Okavango Craft Brewery, which uses locally grown millet in all its beers, won the African Celebration Award sponsored by the Beer Association of South Africa.
In May 2024, Nigerian Breweries launched a limited-edition sorghum-based beer targeting health-conscious consumers. South Africa’s Score brand introduced an umhlonyane-flavoured energy drink in 2022, featuring African wormwood, a local herb known for immunity and digestive benefits.
These aren’t niche experiments but also African brewers using sorghum, millet, and indigenous botanicals are creating commercially viable products that win international awards while celebrating cultural heritage.”
Ghana’s Tale African Beer Craft has won multiple medals at both the African Beer Cup and Brussels Beer Challenge with beers incorporating fresh ginger, lemongrass, and lime leaves. These aren’t niche experiments—they’re commercially viable products resonating with consumers seeking cultural authenticity.
“These aren’t niche experiments but also African brewers using sorghum, millet, and indigenous botanicals are creating commercially viable products that win international awards while celebrating cultural heritage.”
Major Players Double Down Multinational confidence remains strong
Varun Beverages Limited recently acquired BevCo, the Pepsi bottler in South Africa. Bidco acquired Suntory Beverage and Food Kenya in 2024. In November 2023, South African Breweries expanded its Durban canning facility to meet growing demand for portable, sustainable packaging.
Carlsberg announced a joint venture with an Egyptian brewery in October 2024 to produce and distribute its flagship brand in Cairo and Alexandria, entering North Africa’s emerging premium segment. These moves reflect systematic investment in production capacity, distribution networks, and portfolio diversification.
South Africa hosts over 200 craft breweries, with the sector valued at $998.20 million in 2024 and forecast to reach $2.48 billion by 2033—a 9.52% annual growth rate. Craft breweries in Cape Town, Nairobi, and Marrakech are expanding beyond taprooms through collaborations with restaurants, bars, and e-commerce platforms.
The Challenges Beneath Growth
Growth narratives require context. Infrastructure remains inconsistent. In Zimbabwe and South Africa, unreliable energy forces producers to invest in costly renewable energy systems. Transportation challenges persist across rural distribution networks.
Regulatory complexity varies dramatically. Nigeria’s National Agency for Food and Drug Administration and Control (NAFDAC) requires extensive documentation and facility inspections that differ markedly from international standards, increasing costs and delaying product launches.
Affordability gaps persist. While urban professionals in Gauteng (which commands 30.28% of South Africa’s beverage market) trade up to premium products, rural consumers face different realities. The success of smaller pack sizes and low-cost PET bottle formats reflects deliberate strategies to lower affordability barriers.
What 2026 Actually Looks Like
Balance defines the current moment. Indulgence alongside wellness. Global brands alongside indigenous ingredients. Premium growth alongside value formats. Mass production alongside craft innovation.
For producers, agility matters more than scale alone. Coca-Cola Beverages South Africa is reportedly preparing manufacturing plant closures even as the broader market grows, reflecting the need to optimize operations amid shifting consumption patterns. Success requires reading local preferences accurately—understanding that palm wine and ginger beer dominate West Africa while hibiscus tea and mint tea lead in Egypt.
For consumers, choice has genuinely broadened. The days of limited options are receding. Whether seeking a millet-based beer in Gaborone, a vitamin-enriched water in Lagos, or a premium gin in Cape Town, African consumers increasingly find what they want.
The industry’s trajectory through 2026 suggests Africa is not merely a growth market to be exploited but an innovation hub where global trends meet local ingenuity. The continent’s young population—projected to add 200 million people by 2035 in West Africa alone—ensures demographic tailwinds. But demographics alone don’t explain product reformulation, craft brewing movements, or indigenous ingredient innovation.
What’s emerging is an industry confident enough to balance global best practices with distinctly African solutions. The future of Africa’s beverage industry won’t be written in boardrooms alone—it’s being crafted in breweries using sorghum, formulated in labs reducing sugar content, and chosen daily by consumers navigating health, taste, tradition, and modernity.
