Concentrates in Nigeria

PROSPECTS

Impressive growth expected in concentrates over the forecast period

Concentrates remained a comparatively small category within soft drinks in Nigeria in 2019, but continued to see strong off-trade volume and value growth. Given that a high percentage of the Nigerian population live below the poverty line, concentrates offer them the opportunity to consume cheap soft drinks, due to their low unit price.

Liquid concentrates leads growth due to wider availability and smaller pack sizes

Liquid concentrates are a popular choice for at-home occasions, and this category had larger RTD (ready to drink) volume sales than powder concentrates in 2019. The liquid format has a longer presence in Nigeria and a larger consumer base, which is likely to grow as the population increases.

Powder concentrates remain popular for their portability

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

COMPETITIVE LANDSCAPE

Suntory Beverage and Food Nigeria dominates due to high brand equity

Suntory Beverage and Food Nigeria maintained its dominance in concentrates in off-trade value terms in 2019. The company also continued to increase its value share due to the high brand equity of Ribena, which is widely available across retail channels, and as a result has enjoyed strong brand loyalty over the years.

Some consumers look for more affordable options

Whilst Ribena remained the dominant brand in concentrates in 2019, many consumers are looking for more affordable options. For instance, Pladis Nigeria saw the strongest off-trade value growth in 2019.

No key new launches as players concentrate on ensuring availability

There were no key launches in 2019 that impacted concentrates. This was due to high unit price increases in 2019.

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