Could Sub-Saharan Africa be the next growth region for alcohol sales?

Sub-Saharan Africa is a “compelling” long-term growth opportunity for beverage alcohol.
Sub-Saharan Africa is a “compelling” long-term growth opportunity for beverage alcohol. (Getty Images)

Sub-Saharan Africa is a “compelling” long-term growth opportunity for beverage alcohol, spearheaded by fast-growing, young and urbanising populations, and expanding middle classes, research from IWSR has revealed.

Data has shown that total beverage alcohol volumes in Sub-Saharan Africa increased by +1% in 2025 and are forecast to expand at a CAGR of +2% between 2025 and 2035.

IWSR said it expects all major categories to grow over the next decade.

Standouts in 2025 included the performance of RTDs, which grew volumes by +11%, and spirits by +6%. Beer rose by +1%, but wine declined by -3%. Agave spirits were up by +8%, and are expected to grow at a CAGR of +5% to 2035.

However, the report admitted that there was mixed trading. It said these countries are also faced with economic challenges that are not temporary headwinds, but structural features of the trading landscape, and alcohol consumption is restricted or prohibited in some markets for religious or cultural reasons.

It highlighted that ‘downtrading’, rather than premiumisation, has been the dominant consumer behaviour, particularly in recent years, leading people to migrate from spirits to beer, from imports to local brands, and from commercial products to artisanal or informal alternatives. Smaller, cheaper pack formats are enjoying explosive growth for affordability reasons, the IWSR said.

Across Sub-Saharan Africa, locally-produced products dominate, accounting for 97% of beer volumes in 2025, 80% of spirits, 87% of RTDs, 59% of wine and 71% of cider.

Regionally there were a number of different trends.

The IWSR BevTrac consumer research showed that in South Africa beer has emerged as the most resilient category as affordability pressures have sustained moderation.

Beer volumes rose by +3% in 2025 and are predicted to expand at a CAGR of +2% between 2025 and 2035.

RTD volumes surged by +14% last year as consumers look to manage budgets while Canadian and Irish whiskey have been making inroads as emerging middle-class consumers perceive them as more affordable than Scotch, and better quality than South African whisky. Cognac/Armagnac is performing well along with the popularity of tequila.

In Nigeria, Gen Z is substantially less engaged with alcohol than older groups. However, Millennials represent the largest share of drinkers and exhibit the highest participation and heaviest drinking occasions.

RTDs and mostly local spirits are growing strongly with Gin, bitters, cream liqueurs and whisky seeing some of the strongest growth.

Meanwhile, the RTD category is dominated by Flavoured Alcoholic Beverages, which appeal for their convenience and sweeter taste, which make them popular especially with female and younger LDA consumers.

Meanwhile, local spirits and RTDs are the main growth categories in Kenya, with volumes up +13% and +14% respectively in 2025. In spirits, Irish whiskey volumes grew by +35% in 2025, while tequila was up by +65%.

“Africa is often cited as beverage alcohol’s next frontier – and the demographics justify the attention,” said Russell Menezes, Research Director – Africa and Middle East.

“The population is young, fast-growing and rapidly urbanising – a structural tailwind for beverage alcohol demand across multiple markets.”

Menezes said that alcohol brands serve as symbols of social mobility for emerging middle classes, even during periods of economic strain.

“South African consumers demonstrably trade up selectively for special occasions, and the same is true for other African countries, such as Nigeria, Tanzania, Ghana and Ethiopia,” he said.

“There is no doubting the scale of the opportunity for beverage alcohol in Sub-Saharan Africa, but the path to capturing that opportunity is complicated by structural volatility, a persistent dominance of low-priced local and artisanal products, and route-to-market challenges.”

IWSR’s Sub-Saharan Africa data covers Angola, Benin, Botswana, Cameroon, Congo, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Ethiopia, Gabon, Ghana, Ivory Coast, Kenya, Mauritius, Mozambique, Namibia, Nigeria, Reunion, Senegal, Seychelles, South Africa, Tanzania, Togo, Uganda, Zambia