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: 53  |  Publication date: Jul 2009
Cost: 
GBP400.00

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  • 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

Hot climate responsible for poor patronage of tea and coffee

Tea and coffee are, for the most part, consumed on cold days during the rainy season or harsh harmattan weather. These drinks are typically consumed in the morning. Although Nigeria was a British colony, the hot climate has discouraged the tradition of tea drinking, along with rituals such as tea breaks and teatime. However, most companies have started serving their staff tea or coffee during the day. As office complexes are usually air conditioned, Nigerians often drink tea or coffee in the office, especially when they need to remain alert.

Chocolate-based flavoured powder drinks: the most dynamic category

Other hot drinks, and primarily chocolate-based flavoured powder drinks, witnessed the fastest volume growth in 2008. This position can be attributed to brands like Milo (from Nestlé Nigeria) and Cadbury’s Bournvita (from Cadbury Nigeria) being consistently promoted through a variety of events like the Nestlé Milo Basketball Competition and Bournvita Children's Magic Flight (organised annually).

Multinationals dominate Nigerian market

In 2008 the hot drinks market continued to be led by Nestlé Nigeria and Cadbury Nigeria, both subsidiaries of multinational companies, albeit with local manufacturing facilities. They benefit from the expertise and financial clout 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 deep-rooted in consumer consciousness and command considerable consumer loyalty.

Off-trade dominates, but on-trade is gaining share

All hot drinks are mainly prepared and consumed at home or in the office. Most adult consumers drink coffee or tea for breakfast, which they buy in individual sachets in off-licences at cheap prices. However, drinking coffee or tea in on-trade outlets is becoming very fashionable among upper-income individuals, translating into a westernisation of their drinking habits. There has also been an increase in the number of fast food chains serving coffee and tea with their breakfast offerings. This is expected to help boost on-trade growth.

Positive outlook for hot drinks

The outlook for hot drinks remained positive in 2008. Growth will be attributed to the introduction of smaller pack sizes from manufacturers to make their products more affordable and reach a wider consumer base. Manufacturers predict that small pack sizes will significantly contribute to increase volume sales.

Table of contents

HOT DRINKS IN NIGERIA : MARKET INSIGHT

EXECUTIVE SUMMARY

Hot climate responsible for poor patronage of tea and coffee

Chocolate-based flavoured powder drinks: the most dynamic category

Multinationals dominate Nigerian market

Off-trade dominates, but on-trade is gaining share

Positive outlook for hot drinks

KEY TRENDS AND DEVELOPMENTS

MARKET DATA

Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008

Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008

Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008

Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008

Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008

Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008

Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008

Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008

Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008

Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008

Table 11 Hot Drinks Company Shares by Value 2004-2008

Table 12 Hot Drinks Brand Shares by Value 2005-2008

Table 13 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008

Table 14 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008

Table 15 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013

Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013

Table 17 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013

Table 18 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013

Table 19 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013

Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013

Table 21 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013

Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013

Table 23 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013

Table 24 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013

DEFINITIONS

Summary 1 Research Sources

COFFEE IN NIGERIA

Headlines

Trends

Competitive Landscape

Prospects

SECTOR DATA

Table 25 Retail Sales of Coffee by Type: Volume 2003-2008

Table 26 Retail Sales of Coffee by Type: Value 2003-2008

Table 27 Retail Sales of Coffee by Type: % Volume Growth 2003-2008

Table 28 Retail Sales of Coffee by Type: % Value Growth 2003-2008

Table 29 Coffee Company Shares 2004-2008

Table 30 Coffee Brand Shares 2005-2008

Table 31 Forecast Retail Sales of Coffee by Type: Volume 2008-2013

Table 32 Forecast Retail Sales of Coffee by Type: Value 2008-2013

Table 33 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013

Table 34 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013

TEA IN NIGERIA

Headlines

trends

Competitive Landscape

Prospects

SECTOR DATA

Table 35 Retail Sales of Tea by Subsector: Volume 2003-2008

Table 36 Retail Sales of Tea by Subsector: Value 2003-2008

Table 37 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008

Table 38 Retail Sales of Tea by Subsector: % Value Growth 2003-2008

Table 39 Tea Company Shares 2004-2008

Table 40 Tea Brand Shares 2005-2008

Table 41 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013

Table 42 Forecast Retail Sales of Tea by Subsector: Value 2008-2013

Table 43 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013

Table 44 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013

OTHER HOT DRINKS IN NIGERIA

Headlines

Trends

Competitive Landscape

Prospects

SECTOR DATA

Table 45 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008

Table 46 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008

Table 47 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008

Table 48 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008

Table 49 Other Hot Drinks Company Shares 2004-2008

Table 50 Other Hot Drinks Brand Shares 2005-2008

PROMASIDOR NIGERIA LTD

Strategic Direction

KEY FACTS

Summary 2 Promasidor Nigeria Ltd: Key Facts

Company Background

Production

Competitive Positioning

Summary 3 Promasidor Nigeria Ltd: Competitive Position 2008