Beverage market in Ghana worth ¢3.85bn, Kumasi tops with highest consumption – Report reveals

A survey by local research firm, Firmus Advisory has revealed that the beverage market in Ghana is worth ¢3.85 billion, of which domestic production dominates, accounting for 92% of the total market size.

This is based on the number of bottles produced, consumed and the value of imports.

However, the market size of imported beverages is estimated at ¢300 million, representing 8% of the market share.

The report which sampled consumers in Accra, Kumasi and Sekondi-Takoradi found out that demand for beverage consumption has shot up, as most consumers drink 3 to 5 times each week.

It identified that the size of the beverage market keeps expanding and is expected to grow rapidly year-on-year, going forward.

77% of bottles of beverage consumed were non-alcoholic, whilst 23% were alcoholic.

Despite the impact of Covid-19 on the Ghanaian economy last year, the number of beverage products consumed slightly outpaced that of 2019.

The price of alcoholic beverage was also more expensive than non-alcoholic beverage. For instance, where alcoholic beverage will cost ¢10 that of non-alcoholic will cost ¢5.

Kumasi came first as the city with the highest consumption of beverages. Whilst, 71% of respondents purchased alcoholic, 36% bought patronized non-alcoholic beverage.

With regard to Accra, 33% purchased alcoholic beverage, whilst 11% bought non-alcoholic product.

In Takoradi, only 24% of the respondents take in alcoholic beverage as against 7% for non-alcoholic beverage.

Also, Malta Guinness (21%) is the most consumed soft drink in Ghana, followed by coke with 11% of the market share. Don Simon came 3^rd with 9%, whilst Beta Malt and Fanta followed with 6% of the market share each respectively.  

On average, to sell to 2 consumers in the beverage market, the research pointed out that one must plan to reach or create awareness among five potential consumers.

Head of Research and Business Development at Firmus Advisory, Anita Nkrumah said the advent of the African Continental Free Trade Area will create more opportunities for existing beverage firms to export to other markets. This is because the bottlenecks impeding exports to other countries have been removed.

The report provides comprehensive insights on the alcoholic and non-alcoholic beverage market to guide future investments and foster effective decision making within the retail space.

2300 consumers were interviewed and the target audience were individuals aged above 15 years.

Top 5 countries for imports of non-alcoholic beverages

United Kingdom- 24.5%

Belgium                -12.5%

Algeria                  – 10.4%

Germany               -7.5%

Spain                     -6.9%

Top 5 factors influencing purchasing of non-alcoholic beverage

Taste

Health concerns

Ingredients

Flavour variety

Price