Alcoholic beer market in Ethiopia

Earlier Report Observations

The Ethiopian alcoholic beer market began the period with a major capacity addition in 2018, when United Beverages inaugurated a large new brewery in Mojo, Addis Ababa, with an annual capacity of 1.6 million hectoliters. This expansion in domestic production was soon followed by a sharp contraction, as the market volume fell to 1 059 million liters in 2020. This decline was primarily driven by the COVID-19 pandemic suppressing consumer demand, compounded by brewers raising prices by 12-15% due to a steep depreciation of the Ethiopian birr, which increased costs for imported inputs.

A recovery in 2021 brought the market volume to 1 349 million liters. The following year featured significant industry activity, including Meta Abo Beer Factory's $14 million expansion to boost its hourly output and a government move to tighten import controls on beer, aiming to shield domestic producers. Despite these developments, the total market volume receded to 1 156 million liters in 2022.

The market showed renewed growth in 2023, with volume climbing to 1 266 million liters, signaling a post-pandemic stabilization of demand.

Production alcoholic beer in Ethiopia

In kind, 2017-2020, M l

Between 2017 and 2020, Ethiopia ranked as the 30th largest producer of alcoholic beer globally.

Top producers of alcoholic beer, 2017-2020

World map of production of alcoholic beer, 2017-2020

Ethiopia's alcoholic beer production declined for the second year in a row. In 2020, the country produced 1 060 million liters, marking a 24.8% drop from 2019. Over the 2017-2020 period, production fell by 8.7%, with an average annual decline of 3.0%. The peak was in 2018 at 1 426 million liters, which also saw the largest increase of 22.8%.

Annual dynamics of production in Ethiopia in kind, 2017-2020, M l

In value, 2017-2020, M $ US

Alcoholic beer production in Ethiopia decreased for the second consecutive year. In 2020, output was valued at 1 163 million US dollars, down 22.4% from 2019. From 2017 to 2020, production dropped by 20.2%, averaging a 7.3% annual decline. The highest value was recorded in 2018 at 1 639 million US dollars, which also experienced the largest increase of 12.3%.

Annual dynamics of production in Ethiopia in value, 2017-2020, M $ US

Exports alcoholic beer from Ethiopia

Exports in kind, K l

In 2020, Ethiopia exported 1 316 thousand liters of alcoholic beer, a 22.6% year-on-year decrease. Over the 2017-2020 period, exports fell by 14.3%, with an average annual decline of 5.0%. The lowest volume was in 2018 at 1 292 thousand liters, while the peak was in 2019 at 1 700 thousand liters, which saw the largest increase of 31.6%.

Annual dynamics of product's exports from Ethiopia in kind, 2017-2020, K l

From 2017 to 2020, South Sudan (33.2% of exports by volume), Djibouti (23.4%), and Israel (20.8%) were the top contributors to Ethiopia's alcoholic beer exports, together accounting for 77.4% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Ethiopia in kind, 2017-2020

Exports in value, K $ US

In 2020, Ethiopia's alcoholic beer exports reached 1 444 thousand US dollars, a significant 20.0% decrease from the previous year. Between 2017 and 2020, exports dropped by 25.1%, averaging a 9.2% annual decline. The largest decline occurred in 2018 at 23.0%, while the largest increase was in 2019 at 21.7%.

Annual dynamics of product's exports from Ethiopia in value, 2017-2020, K $ US

During 2017-2020, Israel (25.4% of exports by value), South Sudan (25.0%), and Djibouti (22.7%) held the largest shares of Ethiopia's alcoholic beer exports in value terms, collectively making up 73.1% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Ethiopia in value, 2017-2020

Imports alcoholic beer to Ethiopia

Imports in kind, K l

The data shows irregular changes, reflecting a volatile market environment. Imports reached their lowest point in 2020 at 11 thousand liters, a 53.4% decrease from the previous year, and peaked in 2017, with a 6.7-fold difference between these years. The largest decline was in 2018 at 73.8%, while the largest increase was in 2019 at 22.4%.

Annual dynamics of product's imports to Ethiopia in kind, 2017-2020, K l

From 2017 to 2020, the Netherlands (22.6% of imports by volume), Belgium (16.9%), and Curaçao (13.3%) were the main sources for Ethiopia's alcoholic beer imports, together representing 52.8% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Ethiopia in kind, 2017-2020

Imports in value, K $ US

Alcoholic beer imports into Ethiopia increased for the second consecutive year. In 2020, imports were recorded at 65 thousand US dollars, a sharp 27.3% rise from the previous year. Over the 2017-2020 period, imports decreased by 17.7%, with an average annual decline of 6.3%. The lowest value was in 2018 at 47 thousand US dollars, which also saw the largest decline of 41.2%.

Annual dynamics of product's imports to Ethiopia in value, 2017-2020, K $ US

Between 2017 and 2020, the geographical structure of imports in value terms was highly diversified. Germany (25.2% of imports by value), the Netherlands (10.8%), and Belgium (10.2%) together accounted for only 46.2% of total flows, with the remaining 53.8% distributed among numerous smaller partner countries.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Ethiopia in value, 2017-2020