Despite the slowdown in its economy, Nigeria is one of seven emerging market countries that offers ‘tantalising and lucrative’ growth prospects in the alcoholic beverages sector. This is according to a study being released by Just-Drinks, which researches the global beverage industry.
The other countries listed as future ‘boom markets’ are Indonesia, Mexico, the Philippines, South Africa, Turkey and Vietnam.
Common to all of these markets is the presence of an emerging and relatively youthful consumer base, the report points out. “Economic and demographic factors are expanding the personal income of increasingly large sections of the population, who are also urbanising in search of work, thus becoming more exposed to international trends and products,” it says.
Another study on the Nigerian alcoholic beverages market – released in May by international research company Euromonitor – agrees with the Just-Drinks assessment of market potential in the country. According to Euromonitor, volume growth is expected to be ‘fairly strong’, although weaker than previously forecast due to the slowing economy.
“Positive growth in economy lager (cheaper beer) is set to help offset losses in mid-priced lager, while spirits, wine and high-strength premixes can be expected to continue growing moderately, although sales of these products are not yet mature in Nigeria,” the report says. “Population growth is also set to support the good performance of these categories.”
Euromonitor notes that, in Nigeria, consumers drink mainly in groups outside the home, therefore on-trade (pubs, bars and restaurants) accounts for the bulk of alcoholic drinks sales in the country. But it adds that the growth of modern retail outlets, such as supermarkets and hypermarkets, is helping to drive off-trade (grocery and retail outlet) sales growth as their prices for beer are generally cheaper due to bulk buying.