Germany woos Kenya beverage investors

German beverage equipment manufacturers are courting Kenyan investors and producers to attend the world’s largest trade fair in Munich.

The Drinktec Summit, the world’s leading trade fair for the beverage and liquid food sector, is held every four years and showcases innovations in processing, packaging, and distribution.

Organisers say they are keen to attract Kenyan investors, producers, and distributors to explore business partnerships and learn from the latest technologies shaping the future of the beverage industry.

The global demand for machinery and equipment for the production, filing and packaging of beverages and liquid foods continues to grow, with Kenya being one of the biggest importers of German products.

According to data from VDMA, a food processing and packaging machinery company, in 2023, Kenya ranked 10th in German exports to Africa with an import of 267 million euros (Sh39 billion).

Daniel Dellemann, VDMA’s project manager for Market Intelligence and International Markets told the Business Daily that the beverage industry is yet to be saturated and is still a growing hub.

He said Kenya is the largest market for dairy products in East Africa. In 2024, 772,000 tonnes of drinking milk, sour milk and yoghurt products were sold across the country.

“According to Euromonitor International, milk products consumption is projected to grow by 11 percent to reach 857,000 tonnes by 2028. Flavoured dairy drinks are also gaining popularity. However, the relatively high cost of these products continues to limit broader consumption,” Mr Dellemann said.

“Carbonated drinks accounted for the largest share with 657 million litres and projected growth of 16 percent to 764 million litres by 2028. With 831 million litres, beer accounted for 87 percent of alcohol consumption in Kenya. According to Euromonitor, a further increase of 14 percent to 954 million litres is forecast by 2028,” he added.

Solomon Wahome, the chairman of Laikipia Dairies, agrees with the growing demand for dairy products in Kenya.

“Over the past years, we have seen a tremendous increase in the trade in dairy products. Due to the variance of the demographic, there is a growing group of people who are looking for better options of products such as flavoured milk and cheese. To keep up with the demand, we also need to focus mainly on production and some other innovative sectors like packaging,” he said at the conference held on May 30, 2025, in Nairobi.

Mr Wahome noted the possible areas for collaboration with the German market are in the areas of technology and skills development.

“There is a need for Kenya to receive modern machinery that is tailored for small-to-large scale operations. Research and sustainability are essential in pushing innovations in eco-packaging, fortified drinks, and climate-smart production. Export certification will enable Kenyan beverage firms to meet EU standards, opening the doors to a wider global market.”

The German companies also see an opportunity in the rising demand for functional beverages, dairy-based drinks, and fortified juices.

“With the growth come challenges such as water usage, packaging waste, and energy efficiency. We want to examine how producers can leverage AI and smart analytics for efficient production and consumer-driven innovation of natural juices, probiotic drinks, and plant-based options,” Mr Delleman said.

Packaging

Denise Schneider from KHS, a filing and packaging equipment manufacturing firm said in East Africa, PET packaging remains the most practical packaging option due to its affordability, despite global shifts toward alternatives like aluminium cans.

"There is also a growing demand for packaging products for bottled water due to population growth and water safety concerns, as well as a shift toward healthier, functional drinks,” she told Business Daily.

Parikshit Trivedy, a management consultant in the beverage industry, says that over the past 25 years, he has noted an increased demand for the use of technology in the industry.

“I have seen a quantum development in terms of technology, consumer demand, and packaging for the beverage industry, as well as the robust and efficient supply chain management and distribution chain management, which ensure that the product or the brand is available to the consumer at arm’s length. New technology will bring down the cost of production, making beverages more affordable and reachable. The distribution infrastructure is also rapidly evolving. With a robust distribution system, I see semi-urban areas and rural areas having affordable beverages to consume in the next five years,” he said, adding, “The future lies with functional and affordable beverages. The rapid adoption of artificial intelligence in manufacturing will reduce waste and production costs.”

→ [email protected]