Ghana: Bottled Water Market Size and Trends 2017-2021

The bottled water market in Ghana experienced notable fluctuations between 2017 and 2021, influenced by economic factors, environmental challenges, and evolving consumer behavior.

Ghanaian Bottled Water Market Size

The bottled water market in Ghana decreased at a compound annual growth rate (CAGR) of -0.58%. As a result, it reached 341.50 million USD in 2021.

The consumption per capita of bottled water in Ghana showed an overall decrease in the period 2017-2021. Until 2021, it decreased at a CAGR of -2.85% to reach 10.692 USD per capita.

Imports and Exports of Bottled Water in Ghana

The imports of bottled water to Ghana in the period 2017-2021 grew at a CAGR of 3.78% to reach 508 thousand USD.

The exports of bottled water from Ghana in the period 2017-2021 decreased at a CAGR of -31.97% to reach 163 thousand USD.

As a result, the trade balance of bottled water in Ghana was negative. In 2021, the trade balance was equal to -345 thousand USD.

Key Trends in the Ghanaian Bottled Water Market

From 2017 to 2021, Ghana's economy witnessed significant growth, with GDP rising from $60.4 billion in 2017 to $79.5 billion in 2021. The economic expansion was driven by the increased production and export of key commodities such as cocoa, gold, and oil, which positioned Ghana as one of the fastest-growing economies globally.

Despite the overall economic growth, Ghana continued to face significant challenges in providing adequate water and sanitation services. The country’s struggle with water shortages, particularly in rural areas, prompted the government to invest approximately $1.94 billion in water projects under the "Water for All Agenda." These investments aimed to improve access to potable water and address the disparities in water distribution across urban and rural areas.

In 2021, around 92% of households in Ghana had access to improved drinking water sources, but the quality and reliability of these sources varied. Urban areas fared better, with 97.8% of households, compared to 83% in rural areas, highlighting the need for infrastructure development.

Despite improvements in water access, field studies revealed that many "improved" water sources were still susceptible to contamination. The presence of bacteria such as Escherichia coli in public water supplies raised concerns among consumers, who increasingly turned to bottled water as a safer and more hygienic option.

Therefore, the growing consumer health and wellness awareness, coupled with rising income, and hygiene concerns are major drivers that contribute to the expansion of the bottled water market in Ghana.

Despite that, bottled water is not the most popular source of drinking water in Ghana. It was used by just about 1.5% of over eight million people sampled in the country in 2021, according to the National Statistical Office of Ghana.

In 2021, the main sources in the country were sachet water, pipe-borne water, and borehole/tube well, which were the three most popular improved drinking water sources in Ghana. Approximately 37% of all sampled people in the country mainly used this source, followed by boreholes (17.7%) and public taps (12.7%).

Restraints in the Ghana Bottled Water Market

The COVID-19 pandemic posed significant challenges to the bottled water market in Ghana. Lockdowns, factory closures, and disruptions in supply chains negatively impacted production and sales, particularly in the out-of-home segment. The economic slowdown, coupled with job losses and reduced consumer confidence, led to a decline in bottled water purchases in 2020, especially in rural areas.

In addition, global prices of many goods hit their highest levels in a decade, due to the extreme weather events, rising energy and transport prices, and supply chain disruptions caused by COVID-19.

Moreover, the Russian invasion of Ukraine led to the dramatic increase in energy and commodity prices. As a result, crude oil prices skyrocketed and exceeded 100 USD per barrel.

Ghana is also in a financial crisis mostly due to the pandemic and Russia-Ukraine war. Inflation in the country reached record high levels. It increased from just about 12.6% at the end of 2021, to more than 50% at the end of 2022, the highest value in about two decades. The surging global commodity prices compounded the continued depreciation of the cedi against the dollar, according to the World Bank.

In response to the challenging situation, the National Association of Sachet and Packaged Water Producers (NASPAWAP) threatened to halt production in the country in 2022. The continuously rising input costs forced water producers to increase bottled water prices.

Forecast for the Bottled Water Market in Ghana

Under the base forecast scenario, the Ghanaian economy is expected to show steady growth in the medium term. As a result, the Ghanaian bottled water market is expected to reach 457.64 million USD by 2027.

If the Ghanaian economy does not reach expectations, it will show declining rates in the medium term. In this case, the bottled water market in Ghana will fall to 293.37 million USD by 2027.

If the Ghanaian economy exceeds expectations, the bottled water market in Ghana is forecast to reach 519.73 million USD by 2027.