In 2023, coffee experienced the most significant surge in volume sales, largely attributed to urbanisation and the evolution of corporate working environments. As Nigerians adopt busier routines and structured work hours, coffee has emerged as a crucial beverage to sustain alertness.
Unit prices for hot drinks continued to escalate due to double-digit inflation, similar to the previous year. This surge largely resulted from the local currency's depreciation, which made importing raw materials challenging and costly for manufacturers.
Nestlé Nigeria Plc and Cadbury Nigeria Plc maintained their dominance in hot drinks sales in terms of brand share, being subsidiaries of multinational companies with established local manufacturing facilities. Supported by extensive marketing endeavours, both brands engaged in regular advertising and sponsored sporting events.
Economic challenges and diminishing discretionary income resulted in slow positive volume growth in off-trade and even slower growth in the on-trade channel. Despite high unit prices and a sluggish economy, off-trade channels remained the primary choice for consumers due to relatively lower prices compared to on-trade channels.
In 2023, on-trade volume sales recorded weaker growth compared to the off-trade channel. Operators in on-trade channels faced challenges due to poor demand driven by double-digit inflation, high unit prices, weakened consumer spending, and overall economic performance.
Hot drinks is anticipated to witness robust growth in the forecast period, driven by marketing initiatives by key players and propelled by a growing population and the expanding formal office working culture. Manufacturers are likely to adopt innovative strategies to navigate challenges posed by a struggling economy, addressing the consumer shift from on-trade to off-trade channels.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
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:
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.
Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!