On-trade sales have been strongly negatively impacted by the COVID-19 pandemic in 2020. The pandemic led to a lockdown in the first half of the year, stalling economic activities and leading to job losses, the closure of businesses and weaker consumer spending.
Nestlé Nigeria has continued to dominate off-trade value and volume sales of coffee in 2020, as it dominates the large instant coffee category. The company’s strong position can be attributed to its wide and efficient distribution network, which has enabled its Nescafé brand to reach even remote rural areas in the country.
However, Promasidor Nigeria, which has already established good recognition in tea, has posted the highest off-trade value share increase in coffee in 2020. This is due to investments and support provided by the parent company, Promasidor (South Africa).
Total volume sales of coffee are expected to see strong growth throughout the forecast period. However, despite returning to positive territory from 2021, on-trade rates of growth are not expected to reach those seen towards the end of the review period, before the emergence of COVID-19.
The expectation of total volume growth can be attributed to the increasing penetration of coffee, particularly instant coffee, the increase in Nigerians working in formal environments, and the rising number of Nigerians returning from the diaspora. Forecast volume growth is set to be faster than that recorded over the review period, as the category is yet to mature, and is expected to attract new consumers.
Coffee consumption is growing as the population urbanises and the working environment becomes more formal. With consumers engaged in busier lifestyles and fixed work times, more coffee is expected to be consumed in order to remain alert.
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Understand the latest market trends and future growth opportunities for the Coffee 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 report originates from Passport, our Coffee research and analysis database.
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