Hot
Hot Drinks

Hot Drinks in Nigeria

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
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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

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