Concentrates in Nigeria

PROSPECTS

Concentrates continues to benefit from affordability

Liquid and powder concentrates continue to attract attention from price-sensitive consumers. In particular, powder concentrates is perceived to be more affordable option than potential substitutes like ready-to-drink juice.

Powder concentrates remains popular

The poor electricity supply in the country is likely to increase the demand for powder concentrates, which can easily be stored at shelf temperature. In addition, the extensive presence of such products in independent small grocers and kiosks supports visibility and sales.

Liquid concentrates continues to resist substitution

Liquid concentrates is under increasing threat from the wide range of competitively priced ready-to-drink juices and newer types of soft drinks like RTD tea and energy drinks. Meanwhile, liquid concentrates still has larger RTD (ready to drink) volume sales than powder concentrates.

COMPETITIVE LANDSCAPE

Suntory Beverage & Food Nigeria leads concentrates

Suntory Beverage & Food Nigeria continued to dominate concentrates in off-trade volume and value share terms in 2018. This position owes much to the high brand equity of Ribena, which is widely available across retail channels.

Some consumers seek more affordable alternatives to Ribena

While Ribena remains the dominant brand in the category, many consumers are looking for more affordable options. For example, Eve powder concentrates, launched by Qualifood Nigeria in 2017, recorded dynamic retail value sales growth in 2018.

New entrants struggle to consolidate

Some new entrants struggled to establish a foothold in concentrates during the review period. For example, Cadbury Nigeria’s Tang and Flour Mills of Nigeria’s Kool2GO Instant Powdered Drink lasted only a short time in the market.

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