Africa is experiencing a population boom – and this youthful, health-conscious population of more than 1.5 billion people is driving a rise in the consumption of dairy beverages and milk-based juices.
Processors in key African markets are already reaping the benefits of investing in the segment; and global players would be wise to take heed.
“As more people are moving to urban centers and with a growing middle class, dietary preference across the continent are changing and are leading to a higher consumption of processed products including processed dairy beverage products,” Saifaddin Galal, Africa research expert at Statista, told us.
According to Galal, most of the consumption of dairy beverage products in Africa is occurring domestically to avoid spoilage, although a large portion of the traded dairy products are in powder form. Nonetheless, the import of whole milk powder into Africa is expected to increase significantly by 2034 as there are milk supply shortages in some markets on the continent.
What are dairy-based beverages?
Dairy-based beverages are described as beverages obtained from milk and milk products such as whey, buttermilk, juices and yogurt. They are often packed with nutrients including proteins, calcium, vitamin D, phosphorus, potassium, and vitamin B12, among others.
At the moment, the dairy beverage sector in Africa is dominated by cow’s milk. In 2023, around 42.1 million metric tons of milk was produced on the continent; that’s enough volume to fill 16,840 Olympic-sized swimming pools.
And according to Research and Markets, the sector will continue to expand, growing at an annual rate of 3.80% in the next decade, thanks to the adoption of healthy eating and drinking habits and rising product availability.
“Changing eating and drinking habits due to increasing interest in improving and maintaining health is a key trend aiding the Africa dairy based beverages market growth,” says Research and Markets. “The desire to optimize individual health without relying on pharmaceuticals is boosting the consumption of dairy-based beverages in Africa due to their diverse nutritional profile.”
Powerful revenue drivers
Dairy processors in African markets such as Egypt, South Africa and Zimbabwe are expanding their beverage portfolios and achieving revenue growth.
According to brokerage and research company EFG Holdings, Egyptian dairy producer Obour Land ventured into the milk and juice segments in December 2017. The segment’s contribution to revenue doubled to 10% in the first half of 2024 compared to a year earlier, even though a highly competitive market was muzzling the growth of the juices category for the company.
Arab African International Securities says in its March 2025 Report on Obour Land that the Egyptian dairy and juice market is set for steady growth, with milk and juice consumption set to expand in line with population growth at a 2% annual growth rate.
In Zimbabwe, the beverage segment has consistently generated over 50% of revenues for the country’s biggest dairy manufacturer, Dairibord Holdings, Rutendo Jambwa, equity research analyst, told us this month.
“The dairy processing sector is still developing, with various players such as Dairibord Holdings hosting a diversified portfolio of liquid milks, beverages and foods,” Jambwa said, adding that the country is producing more milk than before (114 million liters compared to a national need of 120 million) and that processors are utilizing 60% of their processing capacity, up from 40% five years ago.
Unlike other regions on the continent, relative currency stability, bumper agricultural season and buoyant gold prices have helped to prop up processed dairy and dairy beverage volumes for producers in the country. But a punitive tax environment, which include the sugar and added VAT reclassification taxes, are onerous on a price-sensitive consumer and may reduce consumption in Zimbabwe.
Overall, Africa’s dairy beverage market is on a steady growth trajectory. Processors are increasingly realizing the segment’s strengths and scope for value-added products, and imports are set to surge, making the continent not just one to watch, but one to engage.
