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Hot Drinks in Nigeria
January 2022
Hot drinks in 2021: The big picture
Having slowed significantly during 2020 due to the economic shock of the pandemic, the rate of growth in retail volume sales of hot drinks accelerated modestly in 2021 but remained relatively subdued. A sharp acceleration in unit price growth played a significant role in this.
2021 key trends
Local consumer interest in health and wellness continues to deepen, with the pandemic playing a role in this by drawing attention to the long-term health risks associated with obesity. In tea, this is driving growth in demand for green tea – albeit from quite a low base.
Competitive landscape
Rising prices and a difficult economic environment have led some local consumers to trade down to cheaper brands in hot drinks. In coffee, this trend benefitted Unicafé, which is owned by Megachem Nigeria Ltd, and MacCoffee, which is owned by FMCG Distribution Ltd.
Retailing developments
Traditional grocery retailers continue to dominate the distribution of hot drinks in Nigeria. However, they are steadily losing retail value share to modern grocery retailers, as the number of the supermarkets and hypermarkets in Nigerian cities steadily increases.
Foodservice vs retail split
Having exhibited a double-digit decline during 2020, foodservice volume sales of hot drinks struggled to recover during 2021. In 2020, pandemic restrictions led to the closure of foodservice outlets for an extended period, and even after they re-opened, some remained reluctant to visit them due to the risk of contagion.
What next for hot drinks?
The rate of growth in retail volume sales of hot drinks will steadily accelerate over the course of the course of the forecast period. Apart from an anticipated post-pandemic economic rebound, demand will be supported by population growth and urbanisation.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Nigeria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
Coffee
Tea
Other Hot Drinks
If you're in the Hot Drinks industry in Nigeria, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in Nigeria report includes:
Analysis of key supply-side and demand trends
Detailed segmentation of international and local products
Historic volume and value sizes, company and brand market shares
Five year forecasts of market trends and market growth
Robust and transparent research methodology, conducted in-country
This report answers:
What is the market size of Hot Drinks in Nigeria?
To what extent are health considerations impacting consumption of Hot Drinks in Nigeria?
What are the traditional preferences in Hot Drinks in Nigeria? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in Nigeria?
Which are the leading brands in Hot Drinks in Nigeria?
How are products distributed in Hot Drinks in Nigeria?
How is the rise of e-commerce changing the retail and competitive landscape?
Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
Where is future growth expected to be most dynamic?
Hot Drinks in Nigeria
EXECUTIVE SUMMARY
Hot drinks in 2021: The big picture
2021 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
Chart 1 Hot Drinks Value Sales Growth Scenarios: 2019-2026Chart 2 Hot Drinks Impact of Drivers on Value Sales: 2019-2026
MARKET DATA
Table 1 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2016-2021Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2016-2021Table 3 Retail Sales of Hot Drinks by Category: Volume 2016-2021Table 4 Retail Sales of Hot Drinks by Category: Value 2016-2021Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2016-2021Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2016-2021Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2016-2021Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2016-2021Table 9 Total Sales of Hot Drinks by Category: Total Volume 2016-2021Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2016-2021Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2017-2021Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2018-2021Table 13 Retail Distribution of Hot Drinks by Format: % Volume 2016-2021Table 14 Retail Distribution of Hot Drinks by Format and Category: % Volume 2021Table 15 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2021-2026Table 16 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2021-2026Table 17 Forecast Retail Sales of Hot Drinks by Category: Volume 2021-2026Table 18 Forecast Retail Sales of Hot Drinks by Category: Value 2021-2026Table 19 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2021-2026Table 20 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2021-2026Table 21 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2021-2026Table 22 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2021-2026Table 23 Forecast Total Sales of Hot Drinks by Category: Total Volume 2021-2026Table 24 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2021-2026
DISCLAIMER
SOURCES
Summary 1 Research Sources
Coffee in Nigeria
KEY DATA FINDINGS
2021 DEVELOPMENTS
Volume sales rebound but remain below 2019 levels
Price hikes lead some to trade down to cheaper brands
Marketing activities sees Nestlé Nigeria Plc lead off-trade value sales
PROSPECTS AND OPPORTUNITIES
Urbanisation and population growth will remain significant growth drivers
Rapidly rising prices will weigh on volume growth
Instant coffee will remain dominant
CATEGORY DATA
Table 25 Retail Sales of Coffee by Category: Volume 2016-2021Table 26 Retail Sales of Coffee by Category: Value 2016-2021Table 27 Retail Sales of Coffee by Category: % Volume Growth 2016-2021Table 28 Retail Sales of Coffee by Category: % Value Growth 2016-2021Table 29 Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume 2016-2021Table 30 NBO Company Shares of Coffee: % Retail Value 2017-2021Table 31 LBN Brand Shares of Coffee: % Retail Value 2018-2021Table 32 Forecast Retail Sales of Coffee by Category: Volume 2021-2026Table 33 Forecast Retail Sales of Coffee by Category: Value 2021-2026Table 34 Forecast Retail Sales of Coffee by Category: % Volume Growth 2021-2026Table 35 Forecast Retail Sales of Coffee by Category: % Value Growth 2021-2026Table 36 Forecast Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume 2021-2026
Tea in Nigeria
KEY DATA FINDINGS
2021 DEVELOPMENTS
Price hike leads to slowdown in rate of retail volume sales growth
Green tea grows in popularity, as awareness of its health benefits grows
Leader Lipton loses value share to less expensive rivals
PROSPECTS AND OPPORTUNITIES
Inflationary pressure will continue to weigh on growth
Wider distribution and a broader product offer will drive growth in fruit/herbal tea and green tea
Recovery in on-trade volume sales will be slow
CATEGORY DATA
Table 37 Retail Sales of Tea by Category: Volume 2016-2021Table 38 Retail Sales of Tea by Category: Value 2016-2021Table 39 Retail Sales of Tea by Category: % Volume Growth 2016-2021Table 40 Retail Sales of Tea by Category: % Value Growth 2016-2021Table 41 NBO Company Shares of Tea: % Retail Value 2017-2021Table 42 LBN Brand Shares of Tea: % Retail Value 2018-2021Table 43 Forecast Retail Sales of Tea by Category: Volume 2021-2026Table 44 Forecast Retail Sales of Tea by Category: Value 2021-2026Table 45 Forecast Retail Sales of Tea by Category: % Volume Growth 2021-2026Table 46 Forecast Retail Sales of Tea by Category: % Value Growth 2021-2026
Other Hot Drinks in Nigeria
KEY DATA FINDINGS
2021 DEVELOPMENTS
Sharp rise in unit price impedes retail volume sales growth
Backed by significant marketing, Nestlé Nigeria’s Milo remains dominant
Weak recovery in foodservice demand, as fear of COVID-19 lingers
PROSPECTS AND OPPORTUNITIES
Price instability will continue to weigh on growth
Widening distribution will spur recovery in foodservice volume sales
Poor infrastructure and insecurity will continue to impede distribution
CATEGORY DATA
Table 47 Retail Sales of Other Hot Drinks by Category: Volume 2016-2021Table 48 Retail Sales of Other Hot Drinks by Category: Value 2016-2021Table 49 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2016-2021Table 50 Retail Sales of Other Hot Drinks by Category: % Value Growth 2016-2021Table 51 NBO Company Shares of Other Hot Drinks: % Retail Value 2017-2021Table 52 LBN Brand Shares of Other Hot Drinks: % Retail Value 2018-2021Table 53 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2021-2026Table 54 Forecast Retail Sales of Other Hot Drinks by Category: Value 2021-2026Table 55 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2021-2026Table 56 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2021-2026
The following categories and subcategories are included:
Hot Drinks
Fresh Coffee Beans
Fresh Ground Coffee Pods
Standard Fresh Ground Coffee
Regular Instant Standard Coffee
Decaffeinated Instant Standard Coffee
Regular Instant Coffee Mixes
Decaffeinated Instant Coffee Mixes
Loose Black Tea
Tea Bags Black
Fruit/Herbal Tea
Green Tea
Instant Tea
Other Tea
Chocolate-based Flavoured Powder Drinks
Malt-based Hot Drinks
Non-Chocolate-based Flavoured Powder Drinks
Other Plant-based Hot Drinks
Hot Drinks
This is the aggregation of Coffee, Tea, and Other Hot Drinks.