Cider/Perry in Nigeria

2021 DEVELOPMENTS

Cider/perry remains in the shadow of spirits-based RTDs

Demand for cider/perry remains very limited in Nigeria, as it not a product that most local consumers are familiar with. Indeed, cider/perry only became widely available in Nigeria around a decade ago.

Sluggish recovery from pandemic economic shock

Off-trade volume sales of cider/perry plunged by more than a quarter during 2020, while on-trade volume sales declined by more than a third. During 2020, the negative impact of COVID-19 was exacerbated by increases in excise duty and VAT.

Distell Group dominance deepened by on-trade woes of Strongbow

The offer in cider/perry is limited to a handful of brands, with Distell Group Ltd’s Savanna Dry the long-time leader. Indeed, its already dominant total volume and value shares increased during 2020 and 2021, as the most visible offering on retailers’ shelves.

PROSPECTS AND OPPORTUNITIES

Inflationary pressure could weigh on volume sales growth

Cider/perry is expected to see strong growth through both the on-trade and off-trade during the forecast period. This will be supported by robust population growth, urbanisation and an anticipated post-pandemic economic rebound.

Luring consumers away from spirit-based RTDs will remain a major challenge

Cider/perry has strong potential for growth among women, partly due to its sweet flavour and the relatively low alcohol content of some brands, and the sweet flavour of some product types. Its sweet taste could also appeal to young adults in search of an alternative to beer and spirits.

Brands will seek to widen distribution through food/drink/tobacco specialists

Widening distribution will be key to boosting off-trade volume sales of cider/perry. At the moment, distribution is dominated by modern grocery retail outlets, but there are still relatively few of these in Nigeria.