Alcoholic Drinks - Nigeria

The Alcoholic Drinks market in Nigeria has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in Nigeria have shifted towards premium and craft alcoholic beverages, as consumers are becoming more discerning and willing to spend on higher quality products. This trend is driven by a growing middle class with increased disposable income, who are seeking unique and sophisticated drinking experiences. Additionally, there is a rising demand for healthier options in the alcoholic drinks market, with consumers opting for low-alcohol or non-alcoholic beverages. This shift in preferences has led to an increase in the availability and variety of premium and craft alcoholic drinks in the market. Trends in the market include the growing popularity of locally-produced alcoholic beverages. Nigerian consumers are increasingly embracing locally-made spirits, wines, and beers, appreciating their unique flavors and supporting local businesses. This trend is also driven by a desire for authenticity and cultural connection, as consumers seek to explore and celebrate their Nigerian heritage through the beverages they consume. As a result, there has been a surge in the number of local breweries, distilleries, and wineries in Nigeria, catering to the demand for locally-produced alcoholic drinks. Another trend in the market is the rise of e-commerce and online alcohol delivery services. With the increasing penetration of smartphones and internet connectivity, consumers are turning to online platforms to purchase their favorite alcoholic beverages. This trend is particularly prominent in urban areas, where convenience and time-saving are valued. Online platforms offer a wide selection of alcoholic drinks, competitive pricing, and the convenience of doorstep delivery, making them an attractive option for consumers. Local special circumstances in Nigeria, such as cultural and religious factors, also influence the Alcoholic Drinks market. Nigeria has a diverse population with different cultural and religious beliefs, which impact the consumption patterns of alcoholic beverages. For example, in some regions with a predominantly Muslim population, there are restrictions on the sale and consumption of alcohol. This creates a segmented market, with different preferences and consumption habits in different regions of the country. Underlying macroeconomic factors, such as population growth, urbanization, and economic development, play a significant role in the development of the Alcoholic Drinks market in Nigeria. The country's population is rapidly growing, with a large proportion of young adults who are entering the legal drinking age. Urbanization is also on the rise, leading to increased exposure to global trends and a higher demand for premium and international alcoholic beverages. Furthermore, economic development has resulted in an expanding middle class with higher disposable income, driving the demand for premium and craft alcoholic drinks. In conclusion, the Alcoholic Drinks market in Nigeria is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards premium and craft beverages, the popularity of locally-produced drinks, the rise of e-commerce, and the impact of cultural and religious factors all contribute to the evolving landscape of the market. With the continued development of the Nigerian economy and the increasing sophistication of consumers, the Alcoholic Drinks market is expected to further expand in the coming years.

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.