Hot Drinks in Nigeria
Euromonitor International's Hot Drinks in Nigeria market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 64 | Publication date: Jul 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Strong growth continues in 2007 despite minor slowdown
The hot drinks industry in Nigeria experienced strong retail volume growth in 2007, albeit slightly slower than in 2006. Industry experts suggest that this slight reduction in the growth rate resulted from the increasing competition that hot drinks products face from soft drinks and other kinds of drinks. Also, in spite of the government’s best efforts at improving the economy, the majority of Nigerians remain below the poverty line, and thus many consumers regard hot drinks as special treats, not necessities.
Other hot drinks remains largest and most dynamic category
Other hot drinks, primarily chocolate-based flavoured powder drinks, has the largest volume and value in hot drinks. This category also displays the most dynamic growth. Brands such as Milo (by Nestlé Nigeria) and Cadbury’s Bournvita (by Cadbury) are aggressively promoted through a variety of events such as the Nestlé Milo Basketball Competition and Cadbury’s Magic Children Flight. They are also marketed through different mass media channels and are amongst the most well-known brands in Nigeria.
Multinationals dominate Nigerian market
Hot drinks is dominated by Nestlé Nigeria and Cadbury Nigeria. They are both subsidiaries of multinational companies with local manufacturing facilities and benefit from the expertise and financial backing of their parent companies. They also have the strongest brands, which are supported by extensive marketing activities and have operated in Nigeria for a long time. Their brands are therefore very much entrenched in consumer consciousness and command consumer loyalty. In 2007, Nestlé Nigeria relaunched its flagship brand, introducing Milo with Actigen E.
Changes in retail distribution
Supermarkets/hypermarkets and shopping malls are becoming increasingly significant channels for the distribution of soft drinks in Nigeria following the entry of The Palms, a South African retail chain that opened its first shopping mall in Nigeria in 2005. Consumers and manufacturers have responded positively to these comparatively novel retail distribution channels, and this trend is expected to continue in the forecast period. Private label products are also expected to be introduced into the market through these channels.
Positive outlook for hot drinks
The outlook for hot drinks is positive. Growth will also be stimulated by the introduction of new products and the possible entry of new players. However, growth is expected to continue to slow down because chocolate-based flavoured powder drinks, which accounts for the bulk of hot drinks sold, is gradually approaching maturity.
Table of contents
HOT DRINKS IN NIGERIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Strong growth continues in 2007 despite minor slowdown
Other hot drinks remains largest and most dynamic category
Multinationals dominate Nigerian market
Changes in retail distribution
Positive outlook for hot drinks
KEY TRENDS AND DEVELOPMENTS
Growth continues to slow down in hot drinks
Other hot drinks is largest and most dynamic
Chocolate-based flavoured powder drinks leads in popularity
Hot climate responsible for poor patronage of tea and coffee
Multinationals dominate hot drinks
Changes in retail distribution: The entry of Shoprite
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2002-2007
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2002-2007
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2002-2007
Table 4 Retail Sales of Hot Drinks by Sector: Value 2002-2007
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2002-2007
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2002-2007
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2002-2007
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2002-2007
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2002-2007
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2002-2007
Table 11 Hot Drinks Company Shares by Value 2003-2007
Table 12 Hot Drinks Brand Shares by Value 2004-2007
Table 13 Sales of Hot Drinks by Distribution Format: % Analysis 2002/2007
Table 14 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2007
Table 15 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2007-2012
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2007-2012
Table 17 Forecast Retail Sales of Hot Drinks by Sector: Volume 2007-2012
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Value 2007-2012
Table 19 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2007-2012
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2007-2012
Table 21 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2007-2012
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2007-2012
Table 23 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2007-2012
Table 24 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2007-2012
DEFINITIONS
COFFEE
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 25 Sales of Coffee by Type: Volume 2002-2007
Table 26 Sales of Coffee by Type: Value 2002-2007
Table 27 Sales of Coffee by Type: % Volume Growth 2002-2007
Table 28 Sales of Coffee by Type: % Value Growth 2002-2007
Table 29 Coffee Company Shares 2003-2007
Table 30 Coffee Brand Shares 2004-2007
Table 31 Foodservice Sales of Coffee by Distribution Format 2002/2007
Table 32 Forecast Sales of Coffee by Type: Volume 2007-2012
Table 33 Forecast Sales of Coffee by Type: Value 2007-2012
Table 34 Forecast Sales of Coffee by Type: % Volume Growth 2007-2012
Table 35 Forecast Sales of Coffee by Type: % Value Growth 2007-2012
TEA
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 36 Sales of Tea by Subsector: Volume 2002-2007
Table 37 Sales of Tea by Subsector: Value 2002-2007
Table 38 Sales of Tea by Subsector: % Volume Growth 2002-2007
Table 39 Sales of Tea by Subsector: % Value Growth 2002-2007
Table 40 Tea Company Shares 2003-2007
Table 41 Tea Brand Shares 2004-2007
Table 42 Forecast Sales of Tea by Subsector: Volume 2007-2012
Table 43 Forecast Sales of Tea by Subsector: Value 2007-2012
Table 44 Forecast Sales of Tea by Subsector: % Volume Growth 2007-2012
Table 45 Forecast Sales of Tea by Subsector: % Value Growth 2007-2012
OTHER HOT DRINKS
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 46 Sales of Other Hot Drinks by Subsector: Volume 2002-2007
Table 47 Sales of Other Hot Drinks by Subsector: Value 2002-2007
Table 48 Sales of Other Hot Drinks by Subsector: % Volume Growth 2002-2007
Table 49 Sales of Other Hot Drinks by Subsector: % Value Growth 2002-2007
Table 50 Other Hot Drinks Company Shares 2003-2007
Table 51 Other Hot Drinks Brand Shares 2004-2007
Table 52 Forecast Sales of Other Hot Drinks by Subsector: Volume 2007-2012
Table 53 Forecast Sales of Other Hot Drinks by Subsector: Value 2007-2012
Table 54 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2007-2012
Table 55 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2007-2012
CADBURY NIGERIA PLC
Strategic Direction
Key Facts
Summary 1 Cadbury Nigeria Plc: Key Facts
Summary 2 Cadbury Nigeria Plc: Operational Indicators 2005
Company Background
Production
Competitive Positioning
Summary 3 Cadbury Nigeria Plc: Competitive Position 2007
NESTLÉ NIGERIA PLC
Strategic Direction
Key Facts
Summary 4 Nestlé Nigeria Plc: Key Facts
Summary 5 Nestlé Nigeria Plc: Operational Indicators 2005-2006
Company Background
Production
Competitive Positioning
Summary 6 Nestlé Nigeria Plc: Competitive Position 2007
PROMASIDOR NIGERIA LTD
Strategic Direction
Key Facts
Summary 7 Promasidor Nigeria Ltd: Key Facts
Summary 8 Promasidor Nigeria Limited: Operational Indicators 2006
Company Background
Production
Competitive Positioning
Summary 9 Promasidor Nigeria Limited: Competitive Position 2007