Health concerns and rising prosperity drive packaged water market in Africa
Wednesday, February 19, 2014
Health concerns towards the lack of safe drinking water across many African countries, combined with rising consumer incomes, has driven the packaged water market in the region to grow faster than that of Europe and the US.
The African packaged water market has seen strong growth in recent years, largely outperforming developed western nations, according to Canadean’s latest soft drinks research. Rising incomes across the region has meant that more people can afford packaged water as a solution for clean and safe drinking water.
In the last five years, growth levels have remained consistently high across the continent, with double-digit increases posted in a number of countries. A compound average growth rate (CAGR) of 10% in Africa has largely been driven by the Nigerian market. Nigeria makes up two thirds of the region’s packaged water contribution. Although growth in Nigeria has slowed in recent years, per capita consumption continues to increase and is still well above the regional average.