Hard Seltzer - Nigeria

The Hard Seltzer market in Nigeria has been experiencing significant growth in recent years.

Customer preferences: Nigerian consumers are increasingly seeking healthier beverage options, and this has contributed to the rise in popularity of Hard Seltzers. With a growing awareness of the negative health effects of sugary drinks, many consumers are looking for alternatives that are low in calories and sugar. Hard Seltzers, which are typically made with sparkling water and alcoholic spirits, offer a refreshing and light option for consumers who want to enjoy an alcoholic beverage without the guilt. Additionally, the variety of flavors available in Hard Seltzers appeals to the Nigerian consumer's desire for diversity and experimentation.

Trends in the market: One of the key trends in the Hard Seltzer market in Nigeria is the increasing presence of local and international brands. As the demand for Hard Seltzers has grown, both local and international beverage companies have recognized the opportunity and have introduced their own brands to the market. This has led to a wider range of options for consumers and increased competition among brands. Additionally, the market has seen a trend towards premiumization, with the introduction of higher-end Hard Seltzer brands that cater to consumers looking for a more sophisticated drinking experience.

Local special circumstances: Nigeria's large and youthful population is a key factor driving the growth of the Hard Seltzer market. With a median age of 18. 4 years, young Nigerians are increasingly looking for trendy and fashionable beverages to enjoy with their peers. Hard Seltzers, with their modern and stylish image, have become a popular choice among this demographic. Furthermore, Nigeria's urbanization and increasing disposable income have also contributed to the growth of the market, as consumers have more purchasing power and access to a wider range of products.

Underlying macroeconomic factors: The Nigerian economy has been experiencing steady growth in recent years, and this has had a positive impact on the Hard Seltzer market. As disposable income levels rise, consumers have more money to spend on discretionary items such as alcoholic beverages. Additionally, the growing middle class in Nigeria has led to an increase in consumer spending and a shift towards more premium products. These factors, combined with the changing consumer preferences for healthier options, have created a favorable environment for the growth of the Hard Seltzer market in Nigeria.

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.