In 2021, bars/pubs benefited from the fact that the easing of COVID-19 related restrictions allowed them to resume normal operations. In addition, travel bans meant that high-income groups had to rely on local offerings to socialise.
The COVID-19 crisis led to an increased demand for healthier products, a trend that supported the performance of brands such as Nuli Juice, which offers a range of products like smoothies that are positioned as immunity-boosting beverages. In response to the rise in health-conscious demand and the changed conditions prevailing during the pandemic, the company also launched delivery and pick-up services to support its operations.
While Nigeria does not have a strong coffee culture, growing exposure to Western lifestyles through the internet, satellite TV and increased international travel has begun to change this. The large and rapidly rising number of Millennial consumers, particularly those in formal employment, are increasingly attracted to specialist coffee and tea shops, viewing these as offering an ideal environment for socialising and even working, as many of them provide free Wi-Fi.
The performance of bars will benefit from rising consumer confidence as the economy stabilises, though the economic impact of the COVID-19 crisis is likely to endure well into the forecast period. Increasing consumer confidence will support increased innovation, with new concepts spreading locally through social media and aiming to embrace more “glocalised” offerings.
The health and wellness trend is expected to remain an important influence on consumer demand during the forecast period, and, therefore, to provide significant growth opportunities to businesses operating in the cafés/bars channel. However, companies such as Nuli Juice Lounge are likely to face intensified competition from limited-service restaurants players as they diversify their menus to tap into the rise in consumer health-consciousness and attract niche segments.
Having surged at the height of the COVID-19 crisis, albeit from a very low base, takeaway is set to decline in importance for cafés/bars during the forecast period as consumers socialise out of home more often. Moreover, home delivery is likely to remain a minor contributor to players’ sales.
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Understand the latest market trends and future growth opportunities for the Cafés/Bars industry in Nigeria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This category encompasses all establishments where the focus is on drinking (either alcoholic or non-alcoholic beverages). While a wide variety of snacks and full meals are offered, it is not uncommon for consumers to only order a drink. As a general rule, establishments deriving 50% of their income or more from the sale of drinks are included here.See All of Our Definitions
This report originates from Passport, our Cafés/Bars research and analysis database.
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