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Beverage Labeling Market In Africa

Beverage Labeling Market In Africa: A Huge Potenial

Posted 02 Aug 2022 by Tom Meek, Business Director, Africa

The beverage market in Africa continues to grow at an exponential rate. Due to its expanding economy, population, and urbanization, Africa is a valuable market for international beer suppliers. With the use of alcoholic beverages among of-age adults rising, business has been flourishing for bar and club owners in big cities, like Lagos, so large brewers are making investments in their future growth. Population expansion, increased urbanization, shifting demographics, an increase in the number of women drinkers, and a booming market for flavored alcoholic beverages are a few more factors that are boosting the demand in the area.

As consumption of beer steadily matures on the continent, beer producers are beginning to tap into the burgeoning craft beer sector as their next frontier for growth. Recent studies indicate that demand for mass-produced beer in Africa will increase over the next few years. For example, despite Namibia's relatively modest craft beer market, Namibia Breweries, the nation's largest brewer, is counting on it as its next development area. As the continent’s craft beer market continues to expand, it is only natural that other significant beer producers will enter this growing market.

Growing consumer awareness of health and well-being also has increased demand for non-alcoholic beverages, such as fruit juices, dairy-based drinks, and functional beverages. African beverage businesses can leverage the upcoming FIFA™ World Cup by looking at various opportunities. The sales of energy drinks and health drinks are anticipated to increase faster than carbonated beverages in advance of the global event. Fruit juice mixes in returnable glass bottles and canned water have been introduced in response to the rising demand for low- or no-alcohol drink replacements, low-calorie and low-sugar options, health drinks, and sustainable packaging.

Growth drivers and changing trends

The African beverage market is expected to witness growth over the next four to five years, due to the various driving factors and changing trends in the region.

Major challenges

The cost of production is increasing, as are the prices of energy, transport, and raw materials in the EU and globally. The pandemic and the Russia-Ukraine war have greatly disrupted supply chains, though Africa, with one of the fastest-growing economies in the world, will keep expanding at a favorable rate, despite negative economic effects and challenges.

A rise in costs for goods that are either made domestically or imported provides evidence of the COVID-19 pandemic's effects on the beer market. Supply chain disruptions, rising costs for everything from raw materials to freight, and labor shortages continue to challenge the market, but demand remains strong, and the business continues to grow.

Russia's conflict with Ukraine also has had a wide-ranging effect on European markets, as many businesses are already experiencing a lack of packaging and labeling supplies. Labeling must be changed when using substitute ingredients. However, this may entail months of recipe testing while you wait for new packaging with accurate labels.

Introducing New Labeling Technology

H.B. Fuller continues to develop innovative solutions as Africa's population growth drives these trends and advancements. Given the increased demand for beverage-related goods and services, H.B. Fuller, a global pioneer in adhesive solutions for the packaging and labeling industry, continues to meet regional demands. Keeping this in mind and more, we have recently introduced a new water-based labeling technology that provides a one-stop solution for one-way and returnable bottles, offering the maximum degree of wash-off performance.

The new technology gives you the freedom to bring design innovation, speed up manufacturing, and distinguish your beer brand with outstanding usage. Without being casein-based, this distinctive technology provides various benefits, including high ice-water resistance, cleanability, no label carryover in industry-standard bottle washers, high machinability, biodegradable, and many related features.

H.B. Fuller is committed to serving the African continent, including our new facility in Cairo, which will increase our capabilities to meet challenging local demands for numerous markets, including packaging and labeling. We’re also working with local distributors and professionals to better understand regional requirements and how we can help our customers overcome their adhesion difficulties.

Join us at DRINKTEC 2022, booth 445, hall C, from September 12-16, 2022 in Munich, Germany. To discover our world of limitless labeling, contact us today to understand how we can assist you with your goals.

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