Wine in Nigeria

PRE-COVID-19 PERFORMANCE

A switch to less expensive wines is evident despite the improving economy in 2019

Wine recorded strong total volume growth over the review period despite the economic uncertainty in Nigeria. However, consumers were more rational in their choices of wine, with many moving to less expensive options.

Low growth for champagne with sales restricted due to its high prices

Champagne remained a niche category in Nigeria in 2019 due to its extremely high prices. Champagne had achieved good growth in the early part of the review period, although sales were clearly limited to wealthier consumers and ex-pats.

Ekulo Group of Cos increases its lead in 2019

Ekulo Group of Companies continued to lead wine in 2019 with a strong total volume share. The company is the leading importer of wine in Nigeria and distributes leading brands such as Baron Romero, Baron de Valls, B&G Cuvee Speciale, Don Simón, Escudo Rojo, Moët and Chandon, Dom Pérignon and Pink Lady Sparkling Perry.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of wine are expected to fall by 33% in 2020 in light of the impact of COVID-19. This compares to an expected 8% rise forecast for 2020 during research conducted in May 2019, ie before the spread of COVID-19.

Affected products within wine

Most types of wine are set to suffer steep double-digit total volume declines in 2020, largely driven by the closures and restrictions placed on on-trade establishments as part of the measures to combat COVID-19. Other sparkling wine had benefited from the switch from champagne towards the end of the review period and will witness only moderate, single-digit total volume falls in 2020, although this will have little impact on overall wine sales as the category is set to remain the smallest within wine.

Recovery and opportunities

Total volume sales of wine will return to minor growth in 2022, followed by accelerating performances over the remainder of the forecast period. Even so, total volumes will not be able to reach pre-pandemic levels by 2024, such is the impact of the COVID-19 epidemic on on-trade sales and consumer confidence, with consumers continuing to watch their spending on wine carefully throughout the forecast period.

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