Executive Summary

Jul 2019
PROSPECTS
Domestic economy lager is expected to register the strongest growth

Domestic economy lager is expected to see the strongest volume growth within beer in the forecast period, with Senator Keg set to drive sales. East African Breweries’s newly constructed Senator Keg factory is set to boost volume and value sales, as the company aims to increase keg production capacity by one million hectolitres per year.

International brands to diversify their offerings as demand for premium lager rises

International brands are set to expand their market presence through local subsidiaries and distributors, with the rising population of millennials with varying tastes and preferences expected to push demand for international brands. In 2018, United Dutch Breweries launched the Royal Dutch Posthorn, Atlas and Trio Stout brands through a local distributor, with a pricing strategy aimed at aligning and positioning the brands alongside local brands.

Aggressive marketing is set to boost growth

Beer manufacturers are set to boost their revenue through marketing and promotional campaigns across multi-media platforms. Local players such as East African Breweries and Keroche Breweries are set to adopt a more aggressive strategy both in terms of in-bar and outdoor advertisements, to create awareness amongst potential consumers whilst retaining their existing customers.

COMPETITIVE LANDSCAPE
Local brands dominate beer

Local players dominated beer in total volume terms in 2018, with East African Breweries maintaining its strong lead in the category. Local players have strived to create a strong brand image and well-organised distribution through local distributors across the country.

Heightened marketing activities enhance product awareness

Players in beer run various advertising campaigns throughout the year to retain consumers and gain a competitive advantage. Campaigns such as Summit’s buy-three-get-one-free promotion aimed to retain customers and attract potential consumers, whilst Tusker’s Masaa ya Mbili Mbili promotion encouraged consumers to buy two bottles at a discounted price.

The higher excise duty on alcoholic drinks causes unit price increases

The increase in the tax levy on alcoholic drinks increased the average unit price of beer, with some consumers responding to higher prices by reducing their consumption. The Finance Bill 2018, which imposes a tax of KES100 per litre of beer, which is subject to annual inflation adjustment, translated into higher retail prices, and manufacturers adjusted their prices upwards.

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Beer in Kenya

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Overview

Discover the latest market trends and uncover sources of future market growth for the Beer industry in Kenya with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Beer industry in Kenya, our research will save you time and money while empowering you to make informed, profitable decisions.

The Beer in Kenya market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market volume shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Beer in Kenya?
  • What are the major brands in Kenya?
  • How has premium lager performed in the wake of the global recession, has it lost out to economy lager as consumers traded down?
  • What are the most popular flavours within non-alcoholic beer?
  • What are the market opportunities for ‘healthier’ beers like low calorie and/or low abv beers?
  • Has the implementation of a stricter drink driving law benefited sales of low/non-alcohol beer?
  • Has the recession benefited domestic lager over imported lager?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Alcoholic Drinks market research database.

Beer in Kenya - Category analysis

HEADLINES

PROSPECTS

Domestic economy lager is expected to register the strongest growth
International brands to diversify their offerings as demand for premium lager rises
Aggressive marketing is set to boost growth

COMPETITIVE LANDSCAPE

Local brands dominate beer
Heightened marketing activities enhance product awareness
The higher excise duty on alcoholic drinks causes unit price increases

CATEGORY BACKGROUND

Summary 1 Lager by Price Band 2018
Table 1 Number of Breweries 2013-2018

CATEGORY DATA

Table 2 Sales of Beer by Category: Total Volume 2013-2018
Table 3 Sales of Beer by Category: Total Value 2013-2018
Table 4 Sales of Beer by Category: % Total Volume Growth 2013-2018
Table 5 Sales of Beer by Category: % Total Value Growth 2013-2018
Table 6 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018
Table 7 Sales of Beer by Off-trade vs On-trade: Value 2013-2018
Table 8 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 9 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018
Table 10 GBO Company Shares of Beer: % Total Volume 2014-2018
Table 11 NBO Company Shares of Beer: % Total Volume 2014-2018
Table 12 LBN Brand Shares of Beer: % Total Volume 2015-2018
Table 13 Forecast Sales of Beer by Category: Total Volume 2018-2023
Table 14 Forecast Sales of Beer by Category: Total Value 2018-2023
Table 15 Forecast Sales of Beer by Category: % Total Volume Growth 2018-2023
Table 16 Forecast Sales of Beer by Category: % Total Value Growth 2018-2023

Alcoholic Drinks in Kenya - Industry Overview

EXECUTIVE SUMMARY

A positive performance for alcoholic drinks
Manufacturers focus on expanding due to increasing demand
East African Breweries maintains its lead in alcoholic drinks
The increase in on-trade outlets and internet retailing boost sales
Growth is expected over the forecast period

MARKET BACKGROUND

Legislation
Legal purchasing age and legal drinking age
Drink-driving
Advertising
Smoking ban
Opening hours
On-trade establishments

TAXATION AND DUTY LEVIES

Summary 2 Taxation and Duty Levies on Alcoholic Drinks 2018

OPERATING ENVIRONMENT

Contraband/parallel trade
Duty free
Cross-border/private imports

KEY NEW PRODUCT LAUNCHES

Outlook

MARKET INDICATORS

Table 17 Retail Consumer Expenditure on Alcoholic Drinks 2013-2018

MARKET DATA

Table 18 Sales of Alcoholic Drinks by Category: Total Volume 2013-2018
Table 19 Sales of Alcoholic Drinks by Category: Total Value 2013-2018
Table 20 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2013-2018
Table 21 Sales of Alcoholic Drinks by Category: % Total Value Growth 2013-2018
Table 22 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2017
Table 23 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2017
Table 24 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume 2017
Table 25 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Value 2017
Table 26 GBO Company Shares of Alcoholic Drinks: % Total Volume 2014-2018
Table 27 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2013-2018
Table 28 Distribution of Alcoholic Drinks by Format and by Category: % Off-trade Volume 2018
Table 29 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2018-2023
Table 30 Forecast Sales of Alcoholic Drinks by Category: Total Value 2018-2023
Table 31 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2018-2023
Table 32 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 3 Research Sources