Beer in Middle East and Africa

Delivery

This report comes in PPT.

Key findings

Beer recording healthy growth rates

For the third year in a row, beer recorded total volume sales growth of around 4% in 2019. While lager remains the main growth driver in the market, other beer types, such as stout or wheat beer, were also registering healthy sales increases. Even in countries with low or falling disposable incomes, consumers always have the option of buying cheaper products, such as economy lager, which helps maintain volume growth rates in the region.

Craft beer trend being seen across the region

Craft beer was a clear trend in a number of countries across the region in the latter part of the 2014-2019 period, helping add dynamism to the overall market with a number of new products. Drinkers bored with mainstream lagers or people completely new to the beer market are attracted by craft brewers’ ales, wheat beers, stouts etc. Craft beer addresses the demand for something different, also helping to make beer more premium and sophisticated, and offering players better margins than on the mainstream mid-priced lagers.

Flavoured/mixed lager boom in South Africa

Millennials’ changing preferences have been supporting the dynamic growth of flavoured/mixed lager in South Africa, with new product launches often positioned as unisex offerings. For example, the recently introduced Flying Fish Chill has lower levels of sugar and carbohydrates, making it appealing to anyone watching their weight, as well as those interested in general health issues. Hansa Golden Crisp, introduced towards the end of the historic period, was well received due to its light, easy-drinking nature and less bitter taste.

Economic impact of COVID-19

The pandemic has had a negative effect on beer sales in 2020, with its economic impact hitting consumers’ disposable incomes and on-trade closures decimating this channel’s sales. Growth will only return to positive territory from 2022.