Why beverage industry remains the backbone of Tanzania’s manufacturing sector

Economists argue that this strength is driven by high consumer demand, regional market expansion, and its deep integration into daily life, making it less vulnerable to economic fluctuations than other manufacturing sub-sectors.

Speaking with The Citizen, an economist and lecturer at the University of Dar es Salaam (UDSM), Dr Tobias SWAI, explained that the consistent demand for beverages is rooted in their necessity.

"Beverages are essential for daily life. Whether it’s bottled water in the morning or a soda during a social gathering, these products are consumed in nearly every facet of life," he shared.

He added: "In Tanzania, where disposable income may fluctuate, beverages remain a reliable expense. People will prioritise beverages, making the demand for them relatively stable, even during economic hardships.

"This daily consumption acts as a cushion for the industry, allowing it to weather the storm of economic fluctuations more easily than other sectors. He said the beverage industry becomes a consistent source of revenue, not only for manufacturers but also for thousands of Tanzanians involved in distribution, retail, and sales.

“It also provides a sense of normalcy for consumers who rely on these products as part of their routine, even in tough times,” he said.

This pattern of demand is not merely a result of economic necessity but a reflection of cultural significance.

An economist at the University of Dodoma (UDOM), Dr Mwinuka Lutengano, asserts that beverages are not just products—they are woven into the fabric of Tanzanian life.

"Beverages are deeply embedded in our social fabric. It's not just about quenching thirst; it's about shared experiences, from a bottle of soda during a wedding ceremony to tea with family in the evening," he observed.

He said that they hold symbolic value, making them an essential commodity that transcends economic pressures.

“The presence of beverages at social events, celebrations, and even daily family meals solidifies the demand, ensuring that the industry remains vital,” he explained.

He continued that this cultural connection makes the beverage sector essential.

People in Tanzania don’t just buy beverages—they buy into the experience and tradition that these beverages represent.

“We are not focusing on it, but this deep cultural integration of beverages into Tanzanian society has fostered a strong, consistent market for these products, which ensures the sector’s sustainability over time,” he revealed.

The regional trade aspect also plays a pivotal role in the sector's continued growth.

Executive director of the Research on Poverty Alleviation (Repoa), Dr Donald Mmari, pointed out that the beverage industry’s reach extends well beyond Tanzania’s borders.

"Tanzania has become a key player in regional beverage exports, particularly to neighbouring countries like Kenya and Uganda. This regional trade has been a lifeline for the industry, helping it expand and diversify while offering some protection against local economic fluctuations," he said.

He said for Tanzania’s beverage manufacturers, the ability to tap into neighbouring markets has been crucial for survival and growth.

With increasing regional trade agreements and economic integration within East Africa, Tanzanian beverage products have found eager consumers in neighbouring nations.

“This cross-border trade serves as a buffer, shielding the industry from the full brunt of domestic economic challenges,” he said.

In addition to trade, an economist and senior lecturer at UDSM, Dr Emmanuel Maliti, added another layer to the discussion by highlighting the social impact of the beverage industry.

"The beverage sector is not just an economic engine; it’s a major source of employment for many Tanzanians. From manufacturing to distribution and retail, thousands of people rely on the industry for their livelihoods.

"If this sector were to experience a significant downturn, the social impact would be severe. Job losses would ripple through communities, potentially leading to instability," he said.

He noted that for many Tanzanians, the beverage industry provides essential employment opportunities.

“It is a sector that provides jobs at various levels—manufacturing plants, distribution networks, retail outlets, and even in informal settings like street vendors and small businesses. The sector’s ability to provide stable employment is one of the reasons it has remained resilient through various economic cycles,” he explained.

Furthermore, product innovation is becoming an increasingly important factor in the beverage industry’s continued dominance.

An economist at Saint Augustine University of Tanzania (SAUT), Dr Isack Safari, noted that shifting consumer preferences toward healthier beverage options have prompted manufacturers to adapt.

"There’s a growing demand for organic juices, beverages with reduced sugar content, and more nutritious options," Dr Safari observed.

He said change in consumer behaviour presents both a challenge and an opportunity for manufacturers, who must innovate to meet these new demands.

“The shift towards health-conscious choices is reshaping the landscape of the beverage industry, with manufacturers focussing on expanding their product offerings to include natural and low-sugar beverages. This ability to innovate and meet evolving consumer demands has positioned the sector for continued growth, both within Tanzania and across the region,” he said.

In addition to innovation, a Senior Lecturer in Economics at UDSM, Dr Wilhelm Ngasamiaku, stressed the importance of sustainability in the future of the beverage industry.

"As consumer preferences evolve, and with increasing competition in both local and regional markets, the industry must adapt to meet these changes," he said.

Furthermore, he said that sustainability, whether through eco-friendly packaging or adopting green practices in production, will be key for long-term success.

Dr Ngasamiaku’s emphasis on sustainability highlights the necessity of aligning economic growth with environmental responsibility.

“The beverage industry’s ability to implement sustainable practices, whether in product development or production methods, will be crucial in securing its competitive edge in the market,” he noted.