Beverage leaders call for innovation, investment to boost sector’s growth in Africa

Africa's beverage industry must overcome barriers in financing, regulation and skills development while embracing innovation, sustainability and changing consumer preferences if it is to unlock its full potential, industry leaders said at the inaugural New Pulse Summit 2026.

Speaking during the event, Drinkabl Africa co-founder Tossin Balogun said access to capital is one of the biggest obstacles facing entrepreneurs, noting that while innovative ideas abound, many founders struggle to secure financing to commercialise them.

"Africa's beverage industry needs a convergence of thought leaders, founders and entrepreneurs to bring insights into the room and have conversations on how we can advance the industry together," Balogun said.

Regulatory hurdles also remain a major challenge, as Balogun said talks with operators in East Africa pointed to lengthy licensing processes for breweries and distilleries, slowing investment and industry expansion.

Beyond funding and regulation, he said many founders lack the technical and business expertise needed to scale their businesses, underscoring the importance of knowledge-sharing forums such as the New Pulse Summit.

Balogun also highlighted findings from Drinkabl Africa's latest beverage industry report, which shows that African consumers are becoming more selective in their purchasing decisions.

"Young Africans are drinking differently rather than simply drinking less," he explained. "They are looking for value for money, sustainability and brands that reflect their personal values."

The report also found that premium positioning increasingly influences buying decisions as consumers seek brands that project success and aspiration.

At the same time, ingredient transparency has become more important, with consumers paying closer attention to product labels, sustainability credentials and sourcing practices.

East African Breweries Limited (EABL) said innovation remains central to responding to rapidly changing consumer preferences.

EABL Head of Innovation Effie Kiongo said the company relies on extensive consumer research, digital listening and market engagement to identify emerging trends before developing new products.

Kiongo said African consumers are increasingly demanding flavorful beverages, greater product variety and healthier lifestyle options, citing flavored ciders, ready-to-drink beverages and flavored spirits.

She added that sustainability remains a strategic priority for EABL through initiatives such as bottle collection and recycling programs, as well as partnerships with more than 30,000 farmers growing sorghum and other raw materials.

EABL Innovations Manager Kanye Kuru said resilience in beverage innovation requires building brands grounded in deep consumer insights while ensuring they remain culturally relevant and accessible through the right distribution channels.

He further acknowledged that understanding consumers remains one of the industry's greatest challenges, saying companies must continually invest in research to ensure products genuinely reflect consumer aspirations and lifestyles.

International brand strategist Mark Pollard said Kenya stood out as one of Africa's most exciting investment destinations because of its youthful population, vibrant digital culture and active nightlife.

Pollard said Kenya's creativity and online engagement offer significant opportunities for beverage brands seeking to build strong consumer communities.

"If you're building a brand here and you're not going viral every week, something is wrong," he said, pointing to the country's highly engaged social media audience.

However, he challenged local businesses to raise production standards in branding and creative execution, arguing that stronger storytelling and higher-quality content could help Kenyan brands compete more effectively on the global stage.

The summit, organized by Drinkabl Africa, brought together beverage executives, entrepreneurs, investors and innovators to discuss the future of one of the continent's fastest-evolving industries.

They emphasized that realizing the sector's full potential will require stronger collaboration among governments, investors and manufacturers to remove barriers and accelerate innovation.