Overview: Alcohol Market in Nigeria
The West Africa alcoholic beverages market reached a value of US$ 11.7 Billion in 2021.
One of the major factors augmenting the demand for alcoholic beverages in West Africa include growing preferences for branded alcoholic drinks due to the escalating disposable incomes of consumers.
Let's focus on NIGERIA:
With 206M inhabitants, Nigeria has the largest demography in Africa, with a very young population (65% of the population is under 30 years old). The growing middle class is estimated to represent 18% of the total population (37M inhabitants).
The southern region of the country consumes the highest amount of alcohol, accounting for approximately 75% of consumption. The explanation is that almost 50% of the population is Muslim and resides mostly in the northern regions.
Given the size of the market, many global companies operate subsidiaries in Nigeria (Diageo, Heineken, InBev) and local production accounts for 80% of consumption.
Market data indicates that beer is the most widely consumed alcoholic beverage with a 55% market share, followed by spirits (30%) and wine (15%). In 2021 wine consumption in Nigeria reached 33 million liters (record high).
It should be noted that considerable quantities of products are imported through land borders. Smuggling is important and the figures for these imports are rarely counted. Some importers use this method to import new products to be tested on the market.