Cider/Perry in Nigeria

PROSPECTS

Slow economic recovery threatens growth

The low disposable incomes of Nigerian consumers amidst slow economic recovery discouraged them from trying cider/perry, as these products are generally expensive compared with competing alcoholic drinks, such as beer and RTDs. On-trade, the main channel through which growth is expected over the forecast period, was most affected by the prevailing harsh economic conditions and poor consumer purchasing power in 2018, as unit prices are higher compared with off-trade, but an improved economy should help to push growth over the forecast period.

The on-trade channel is set to see better volume growth over the forecast period

Despite the off-trade channel accounting for far higher sales in cider/perry, growth through the on-trade channel is expected to outperform growth through the off-trade channel in the forecast period. With the economy expected to recover over the forecast period, consumers are likely to be more able to afford such products through on-trade outlets.

The growing young adult and female populations are likely to drive growth

Cider/perry has good growth potential amongst women and young adults, partly due to the lower alcohol content of some brands, and the sweet flavour of some products. Women in particular, who are not inclined to drink beer or spirits, tend to find the sweeter flavours and lower alcohol content appealing.

COMPETITIVE LANDSCAPE

Distell Group dominates cider/perry

Distell Group dominated cider/perry in total volume terms in 2018. Being the pioneering company in the category has ensured that its key cider brands, Hunter's Extra Dry Cider and Savanna Dry, are widely available and visible in most outlets selling alcoholic drinks.

Nigerian Breweries sees a weak performance in 2018

Even Strongbow Apple Ciders from Nigerian Breweries, which entered the category in 2015 to great expectations, given the company’s distribution strength, saw a poor performance in total volume terms in 2018. The brand saw the weakest performance within cider/perry in 2018, as Strongbow Apple Ciders suffered from the consumer preference for other alcoholic drinks, such as spirits and RTDs, as pricing became a major determinant of choice during the year.

Files are delivered directly into your account within a few minutes of purchase.