Beer - Nigeria

The Beer market in Nigeria has been experiencing significant growth over the past few years.

Customer preferences: Nigerians have traditionally been big consumers of beer, with it being a popular choice of beverage for social gatherings, celebrations, and even everyday consumption. The younger population, in particular, has shown a preference for beer over other alcoholic beverages.

Trends in the market: One of the key trends in the Nigerian beer market is the increasing demand for craft beer. This trend mirrors the global craft beer movement, where consumers are seeking unique and locally brewed beers with distinct flavors. Craft breweries in Nigeria have been gaining popularity, offering consumers a wide range of options beyond the traditional mass-produced beers. This trend is driven by a growing middle class with disposable income and a desire for more premium and differentiated products. Another trend in the market is the rise of low-alcohol and non-alcoholic beer. Health-conscious consumers are increasingly looking for alternatives to traditional high-alcohol content beers. Non-alcoholic beers are gaining traction as a healthier option, appealing to those who want to enjoy the taste of beer without the negative effects of alcohol. This trend is also driven by religious and cultural factors, as Nigeria has a significant Muslim population that abstains from alcohol.

Local special circumstances: Nigeria has a large and youthful population, which contributes to the growing demand for beer. The country also has a vibrant nightlife culture, with bars and clubs being popular socializing spots. Additionally, the hot climate in Nigeria makes beer a refreshing choice for many consumers. These local factors create a favorable environment for the beer market to thrive.

Underlying macroeconomic factors: Nigeria's economy has been experiencing steady growth, which has led to an increase in disposable income and consumer spending. As more Nigerians enter the middle class, they have more purchasing power to spend on discretionary items such as beer. This economic growth has also attracted foreign breweries to invest in the Nigerian market, leading to increased competition and a wider range of beer options for consumers. In conclusion, the Beer market in Nigeria is growing due to customer preferences for craft beer and low-alcohol options, as well as local factors such as a youthful population and vibrant nightlife culture. The underlying macroeconomic factors, including economic growth and increased disposable income, further contribute to the market's development.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.