More than ever before, more and more young people continues to seek ways to boost their energy to cope with their ever busy and demanding daily lives. That explains why the rate of consumption of energy drinks continue to increase globally and Africa is not an exception. With caffeine as its main ingredient, energy drink is a specially formulated beverage that is known to improve alertness and it also promote mental and physical performance. The global energy drink market has grown into a multibillion market in dollar terms and it is projected that by 2021, the global energy drink market will be worth $61 billion. In Africa, the total market for non-alcoholic beverages – of which energy drinks form an integral – was estimated to be worth $54.6 billion as at 2013 according to a study by Euromonitor International and reported by Forbes.com. Here are some more details about energy drinks in Africa!
Market trends for energy drinks in Africa
There are a few but very important factors that makes venturing into the manufacturing of energy drinks in Africa for local consumption a smart investment decision. Firstly, the disposable incomes of average Africans are gradually on the increase which increases the chances of Africans spending more on things like beverages and energy drinks that are easily affordable.
Secondly, since energy drinks are most popular among youth and according to the United Nations, the population of African youth between the ages of 15 and 24 is about 126 million out of an estimated population of about 1.6 billion people. What this figure indicates is that Africa and especially Nigeria and South Africa promises a good return to investors willing to invest in local production of beverages and energy drinks because most African youth lives in these countries. In addition, according to the African Development Bank, the number of people in Africa that are able to spend between $2 and $20 a day account for about 350 million people and energy drinks are damn cheap that they could easily be affordable to many people in Africa. Without mincing words, the aggregate number of current and potential consumers of energy drinks in Africa is huge which makes all the sense to invest in this sector.
The market environment of energy drinks is littered with much bad press but despite this scenario, the global market report shows that the demand for energy drinks is huge in the developed world and it is growing in several African countries due to the perceived benefits of the beverages.
Some of the benefits of drinking energy drinks:
- Improves concentration and alertness
- Reduces tiredness and fatigue
- Improves performances and endurance
- Provides instant energy and vitality
Competition and consumers
While there are several foreign brands of energy drinks such as Red Bull (Austria-based) and Monster Energy (US-based) on the African market, there are a few brands that are made in Africa and have become very popular among consumers on the continent. An example of the locally made brands of energy drinks is the MoFaya which was introduced into the market in 2014 and it’s made in South Africa.
Energy drink consumers are top athletes, students, and in highly demanding professions as well as long drives. These beverages are to be consumed in moderation and with healthy diet to feel the benefits.
Finally, while energy drinks offer real benefits to consumers with its caffeine-laden recipe, moderation is still the watchword in order to strike a balance between the benefits its offers and its effect on health when taken in large doses for too long.
How Africa Processing can help you
Africa Processing is the result of five companies joining forces to benefit local production in Africa. Africa Processing can assist in business plan, food product development, factory engineering, machine and equipment configuration, production startup and on-site training. We help you setup and run a successful food processing business in Africa. Contact us today and let’s start talking about your energy drink project!