Regular instant coffee mixes is expected to post the fastest retail volume sales growth over the forecast period. Growth is set to be driven by the convenience of 3-in-1 premixes, as consumers find added value in these coffee, milk and sugar products.
The demand for fresh coffee continues to benefit from the spreading coffee culture across Nigeria. This is partly driven by changing lifestyles, with middle-income consumers working in formal industries increasingly embracing Western cultural norms and consumption habits.
The government is discussing ways to break away from the national economy’s oil dependency. This is leading to increased calls for investment in local coffee farms to boost domestic production and increase the local offer.
Nestlé Nigeria dominated coffee throughout the review period. The company benefits from the popularity of Nescafé, which has become a household name in Nigeria.
The rising interest in coffee among Nigerian consumers has seen an increasing number of coffee shops open across major cities. From Café Neo to Vestar Coffee, upmarket coffee shops are often located in or close to shopping centres, where they can easily reach their target audience.
FMCG Distribution has gained momentum in regular instant standard coffee with its Richmond brand. The company has increased its market penetration, with its range sold across leading chained grocery retailers.
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This industry report originates from Passport, our Hot Drinks market research database.