Non-Alcoholic Drinks - Nigeria

The Non-Alcoholic Drinks market in Nigeria has been experiencing significant growth in recent years.

Customer preferences: Nigerian consumers have shown a growing preference for Non-Alcoholic Drinks due to several factors. Firstly, health consciousness has been on the rise, with consumers becoming more aware of the negative effects of excessive alcohol consumption. As a result, many individuals are opting for non-alcoholic alternatives that offer similar taste experiences without the potential health risks. Secondly, the younger generation in Nigeria is increasingly driving demand for Non-Alcoholic Drinks. This demographic is more health-conscious and is actively seeking out beverages that are refreshing, flavorful, and non-alcoholic.

Trends in the market: One of the key trends in the Non-Alcoholic Drinks market in Nigeria is the increasing popularity of functional beverages. Consumers are looking for drinks that offer additional health benefits, such as improved digestion, energy boost, or stress relief. Manufacturers have responded to this demand by introducing a wide range of functional beverages, including herbal teas, fruit-infused waters, and vitamin-enriched drinks. These products not only provide hydration but also offer specific health benefits, making them attractive to health-conscious consumers. Another trend in the market is the growing popularity of local and traditional drinks. Nigeria has a rich cultural heritage, and consumers are increasingly embracing traditional beverages that have been consumed for generations. These drinks, such as zobo (a hibiscus-based drink) and kunu (a millet-based drink), are not only refreshing but also offer a taste of Nigerian culture. Manufacturers have recognized this trend and are incorporating traditional ingredients and flavors into their product offerings to cater to the local market.

Local special circumstances: Nigeria has a large population and a growing middle class, which has contributed to the increasing demand for Non-Alcoholic Drinks. The country's urbanization and rising disposable incomes have led to a shift in consumer preferences towards healthier beverage options. Additionally, the hot and humid climate in Nigeria makes Non-Alcoholic Drinks a popular choice for hydration and refreshment.

Underlying macroeconomic factors: The Non-Alcoholic Drinks market in Nigeria is also influenced by several macroeconomic factors. The country's GDP growth, increasing urbanization, and rising disposable incomes have all contributed to the growth of the market. Additionally, government initiatives to promote local manufacturing and reduce imports have created opportunities for local players to enter the market and offer competitive products. The availability of raw materials, such as fruits and herbs, also supports the growth of the Non-Alcoholic Drinks industry in Nigeria. In conclusion, the Non-Alcoholic Drinks market in Nigeria is witnessing significant growth due to changing customer preferences, including a shift towards healthier options and a growing interest in traditional and local beverages. The market is also influenced by macroeconomic factors such as GDP growth and rising disposable incomes. Manufacturers are responding to these trends by introducing functional beverages and incorporating traditional flavors into their product offerings. Overall, the future of the Non-Alcoholic Drinks market in Nigeria looks promising, with ample opportunities for both local and international players.

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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.