Both off-trade and on-trade volume sales of RTDs declined sharply during 2020 due to COVID-19 restrictions and the economic shock that they engendered, and demand recovered only partially in 2021. RTDs are particularly vulnerable to economic shocks, as during hard economic times, price-sensitive local consumers will turn to cheaper alternatives like beer and spirits mixed with soft drinks.
During the review period, e-commerce emerged as a niche distribution channel for RTDs, with the pandemic serving to accelerate its growth. Indeed, the retail volume share of e-commerce in RTDs doubled between 2019 and 2021, as local consumers grew more comfortable shopping online and the country’s internet retail infrastructure continued to develop.
Guinness Nigeria Plc continued to dominate RTDs in terms of both total volume and value sales in 2021 with its Smirnoff Ice and Orijin brands. These brands are heavily backed by advertising, particularly on TV and social media, helping to both stimulate and maintain local consumer interest.
RTDs are expected to see strong growth through both the on-trade and off-trade during the forecast period. This will be supported by robust population growth, urbanisation and an anticipated post-pandemic economic rebound.
Spirit-based RTDs are expected to continue driving overall growth in RTDs during the forecast period, being the dominant category within RTDs. The product has high visibility and a range of well-known brands and will continue to be the major entry point of new consumers to RTDs.
Both modern grocery retailers and e-commerce will continue to grow in importance as distribution channels for RTDs during the forecast period. Internet use is steadily rising in Nigeria, and 5G internet is expected to be rolled out during the forecast period (at least in the country’s largest urban centres), which will make e-commerce more expensive.
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RTD stands for ‘ready-to-drink’. Other terms which may be used for these products are FABs, alcopops and premixes. The RTDs sector is the aggregation of malt-, wine-, spirit- and other types of premixed drinks. These drinks usually have an alcohol content of around 5% but this can reach as high as 10% ABV. Premixes containing a high percentage of alcohol of around 15%+ combined with juice or any other soft drink are included here. RTDs are usually marketed as products to be drunk neat, with ice, or as a cocktail ingredient. Fruit-flavoured, vodka-based spirits with an alcohol content of between 16-21% are classified here. Examples: Alizé, Ursus Roter, Berentzen Fruchtige, Kleiner Feigling.See All of Our Definitions
This report originates from Passport, our RTDs research and analysis database.
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