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The Beverages Industry in Ghana 2015

  • July 2015
  • -
  • Who Owns Whom
  • -
  • 63 pages

Summary

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The Manufacture, Wholesale and Retail of Beverages in Ghana: The beverages sector contributed approximately US$125m to the GDP of Ghana in 2014 and plays a critical role in the economy by providing several thousand direct and indirect employment opportunities across the value chain. Increasing demand for carbonated soft drinks, energy and sports drinks, bottled and sachet water and branded alcoholic beverages is being driven by population growth, rising urbanisation, the growth of the Ghanaian middle-class and tourism.


Dependence on Imports: As is the case in most other African nations, primary commodities are generally exported in their raw state and are then imported as processed beverages. However, although import levels remain high, Ghanaian beverage manufacturing capacity as well as bottling and packaging capacity have been boosted substantially during the past five years, with major players such as SABMiller, investing in infrastructure and trying to source inputs locally.


Challenges : Rising input costs have exacted a heavy toll on the sector. Many inputs such as glass, plastic and ethanol still have to be imported and duties, which are calculated in foreign currencies, drive production costs higher. The depreciation of the cedi has impacted particularly heavily on sachet water producers whose margins are very low. As a result of the erratic power supply, productivity is low and manufacturers have to use diesel generators. The number of illicit products and unregulated home brews still dwarfs the legal beverages market and although stakeholders reiterate the importance of regulation, financially this comes at a high price.



Report Coverage:

This report focuses on the manufacture of alcoholic and non-alcoholic beverages as well as the wholesale and retail trade in beverages in the Ghanaian market. It investigates the local beverages market, recent developments and factors influencing the success of the formal sector. The report also profiles seventeen manufacturers, including Ghana’s largest brewer Guinness Ghana Breweries Limited (GGBL) which has market share of over 60%, indigenous alcoholic beverage manufacturer, Kasapreko Company Limited (KCL) and Voltic Ghana, the market leader in bottled water.

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