Sub-Saharan Africa alcohol market projected to grow 2% annually through 2035

Sub-Saharan Africa is positioned as a high-potential long-term market for alcoholic beverages, with a projected compound annual growth rate of 2% between 2025 and 2035, according to a report by IWSR. This growth is driven by rapid urbanization, a young population, and an expanding middle class.

In 2025, total volumes increased by 1%. Specific category performance included an 11% rise in ‘ready to drink’ (RTD) products and a 6% increase in spirits. Agave spirits grew by 8% and are expected to maintain an average annual growth of 5% through 2035. Conversely, beer rose by 1%, while wine saw a 3% decline.

Russell Menezes, IWSR research director for Africa and the Middle East, noted that aspirational consumption is a key driver in countries such as South Africa, Nigeria, Tanzania, Ghana, and Ethiopia, where certain brands serve as symbols of social prestige. However, a dominant trend of ‘downtrading’ is also evident, as consumers shift toward more affordable options, including local brands, beer, and smaller packaging formats to manage spending.