Sub-Saharan Africa alcohol market grows 1% in 2025 – IWSR

AFRICA – Sub-Saharan Africa’s beverage alcohol market grew 1% in 2025; RTDs, spirits and beer expanded while wine declined, according to IWSR data reported by Wine Intelligence. 

The data, published on 6 September, showed RTDs led regional growth with an 11% increase, followed by spirits at 6% and beer at 1%. Wine volumes fell 3%, highlighting the contrasting performance across categories. 

IWSR projects total beverage alcohol volumes in Sub-Saharan Africa to grow at a 2% compound annual growth rate through 2035, supported by youthful populations, rapid urbanisation and expanding middle-income consumer groups across markets. 

Russell Menezes, IWSR’s research director for Africa and the Middle East, said the opportunity is underpinned by demographic trends and the social value alcohol brands can carry for consumers moving up economically. Consumers in South Africa, Nigeria, Tanzania, Ghana and Ethiopia continue to trade up selectively for special occasions. 

Affordability pressures are shaping consumption, with downtrading a central trend. Consumers are moving from spirits to beer, imported products to local brands, and established commercial products to artisanal or informal alternatives. Smaller, cheaper pack sizes are also gaining ground. 

The trend is particularly relevant to wine, which is lagging categories that fit tighter budgets or local supply chains. IWSR said importers and international wine suppliers face strong local production and value-focused consumers. 

Local production dominates categories. In 2025, 97% of beer sold in the region was produced domestically, alongside 87% of RTDs, 80% of spirits, 71% of cider and 59% of wine. The figures underline the importance of domestic supply in regional beverage alcohol markets. 

Menezes said the opportunity is clear, but capturing it is complicated by structural volatility, the dominance of low-priced local and artisanal products, and distribution challenges. He said these conditions mean brands must tailor strategies country by country rather than rely on a single regional approach. 

South Africa, Nigeria and Kenya show different market dynamics. In South Africa, beer volumes rose 3% in 2025, while RTDs jumped 14% as consumers shifted away from bottled spirits and wine towards lower-cost options. Premium spirits also performed, with Cognac up 18% and tequila 7%, while Canadian and Irish whiskey gained share from Scotch. 

In Nigeria, millennials were the main demand driver, while some younger consumers showed limited intention to drink alcohol. Spirits and RTDs each grew 8%, with gin, bitters, cream liqueurs and whisky performing strongly. Indian whisky continued gaining share from blended Scotch, largely on value. 

Kenya recorded stronger momentum, with local spirits volumes up 13% and RTDs increasing 14%. Tequila surged 65%, while Irish whiskey rose 35%. IWSR expects these growth rates to moderate as the economy strengthens. 

Agave spirits also performed strongly across the wider region, growing 8% in 2025 and forecast to deliver a 5% compound annual growth rate over the next decade. Wine remained the main weak point in the regional outlook, despite overall beverage alcohol growth and a long-term regional expansion forecast. 

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