Kumasi, Ghana: Potential Opportunities for Investors - Millennium ...
Kumasi, Ghana: Potential Opportunities for Investors - Millennium ...
Kumasi, Ghana: Potential Opportunities for Investors - Millennium ...
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Fruit processing market<br />
In addition to the<br />
<strong>Ghana</strong>ian market, there is<br />
the potential <strong>for</strong> <strong>Ghana</strong>based<br />
manufacturers to<br />
enter regional and<br />
international fruit<br />
juice markets<br />
Indicative fruit juice market sizes, 2007<br />
a 1<br />
US, UK, Germany<br />
and Netherlands<br />
Nigeriaa 1<br />
Ivory Coast, Burkina<br />
b c<br />
Faso and Togo<br />
<strong>Ghana</strong> 2 c<br />
US$37.1bn<br />
US$320m<br />
US$50m<br />
US$50m<br />
Notes:<br />
a Includes pure fruit juices and fruit juice blends<br />
b Based on same spending per capita on<br />
non-carbonated fruit juice drinks as <strong>Ghana</strong><br />
adjusted <strong>for</strong> relative GDP levels<br />
c Non-carbonated fruit juices<br />
Sources:<br />
1 Interactive consumer database,<br />
Datamonitor, November 2007<br />
2 KPMG in <strong>Ghana</strong> interview programme and<br />
World Bank<br />
Market in <strong>Ghana</strong><br />
The demand <strong>for</strong> soft drinks in <strong>Ghana</strong><br />
is significant and <strong>for</strong>ecast to grow.<br />
The overall soft drinks market in <strong>Ghana</strong><br />
is estimated to be in the region of US$150<br />
million, split US$85 million in carbonated<br />
soft drinks and US$65 million in noncarbonated<br />
soft drinks1 (of which<br />
approximately US$50 million is the fruit<br />
juice market). In the carbonated soft drinks<br />
market, Coca-Cola has a 95 percent market<br />
share.<br />
Based on KPMG’s interview programme,<br />
the <strong>Ghana</strong>’s soft drinks market has the<br />
potential to grow at around 5 percent per<br />
annum between 2007 and 2010.<br />
Although official statistics appear unreliable<br />
in absolute terms, the available data, taken<br />
together with market evidence and KPMG’s<br />
interview programme, indicates a significant<br />
growth trend in fruit juice imports.<br />
Export possibilities<br />
Neighbouring countries represent potential<br />
additional markets, particularly where these<br />
markets are currently underdeveloped.<br />
<strong>Ghana</strong> could act as a central manufacturing<br />
location from which neighbouring countries’<br />
soft drinks markets could be supplied.<br />
Page 30<br />
Limitations in transport infrastructure and<br />
lower levels of consumer affluence are likely<br />
to act as constraints to entering<br />
neighbouring markets.<br />
While Nigeria represents a substantial<br />
fruit juice market in the region, KPMG<br />
interviews indicate that the market’s relative<br />
maturity and the high costs associated with<br />
shipping product from <strong>Ghana</strong> to Nigeria, act<br />
as notable deterrents to attempts to access<br />
the market.<br />
Successful market entry into the expansive<br />
markets of the US and Europe is likely to be<br />
dependent on developing a partnership with<br />
an established market player.<br />
The fruit juice markets in the US and<br />
Europe are dominated by a limited number<br />
of suppliers and retailers.<br />
• Three suppliers account <strong>for</strong> almost 75<br />
percent of the US fruit juice market 2<br />
• In the UK, four supermarkets account <strong>for</strong><br />
over 80 percent of all grocery sales 3<br />
1 KPMG in <strong>Ghana</strong> interview programme<br />
2 ‘Juices in the United States’, Datamonitor,<br />
December 2006<br />
3 ‘How Britain Shops 2007: Food and Grocery’,<br />
Datamonitor, April 2007<br />
© 2008 KPMG International. KPMG International is a Swiss cooperative. Member firms of the KPMG network of<br />
independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm<br />
has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG<br />
International have any such authority to obligate or bind any member firm. All rights reserved.