Hot drinks navigate affordability pressures while essentiality and adaptability sustain demand
Hot drinks in Nigeria in 2025 is shaped by a complex interplay of affordability concerns, shifting consumer expectations, and the evolving role of wellness within household purchasing decisions. Although economic pressures remain acute particularly due to high input costs, currency volatility, and ongoing increases in basic living expenses consumers have adapted their behaviour in ways that allow the category to maintain steady relevance. Downtrading has become deeply entrenched, with consumers prioritising smaller pack sizes, combination products, and lower-priced brands in key categories such as black tea, instant coffee mixes, and chocolate-based flavoured powder drinks. These adaptations have helped households continue to access essential hot drinks, which remain integral to daily routines and important sources of energy, warmth, and nutrition, especially for children and busy working adults.
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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
Hot drinks navigate affordability pressures while essentiality and adaptability sustain demand
KEY DATA FINDINGS
Manufacturers prioritise affordability through smaller pack sizes and cost-saving mixes
Weak interest in premium wellness limits innovation and favours functional, affordable nutrition
Currency pressure constrains import-heavy categories while local tea and coffee players gain traction
Hot drinks set to benefit from population growth, economic improvement, and rising workplace consumption
Innovation and brand rejuvenation to accelerate as economic stability improves
Distribution expansion, digitalisation, and modern grocery growth will reshape market reach
Nestlé Nigeria strengthens its leadership through brand equity, distribution depth, and accessible innovation
Promasidor Nigeria emerges as the most dynamic player through aggressive affordability and flavour variety
Local players gain visibility as imported niche segments stagnate and consumers explore domestic alternatives
Small local grocers remain the leading distribution channel due to proximity and strong demand for small pack sizes
Supermarkets record the strongest dynamism as assortments expand and proximity improves
E-commerce experiences gradual adoption as consumers value convenience but still prefer physical shopping
Foodservice remains a small but steadily evolving channel as café culture expands and premium experiences gain relevance
On-trade outperforms off-trade in 2025 as affluent consumers sustain demand amid economic pressures
Retail remains the dominant channel as affordability, convenience, and daily consumption habits steer purchasing behaviour
COUNTRY REPORTS DISCLAIMER
Coffee in Nigeria
KEY DATA FINDINGS
Coffee faces sustained price pressures while affordability-oriented innovation supports demand
Retail value sales of coffee increased in 2025 as stabilising inflation supported modest recovery
Instant coffee mixes was the most dynamic category in 2025 due to increased sachet availability and value-driven positioning
Retail value sales of coffee are expected to rise over the forecast period as economic stability and rising incomes support adoption
Innovation in instant mixes and flavour diversification will drive future growth opportunities
Health, wellness, and sustainability will play a niche but growing role in shaping consumer preferences
Nestlé Nigeria Plc was the leading company in 2025 in coffee due to strong brand equity and extensive distribution
Primera Foods Nigeria Ltd was the most dynamic company overall in 2025 due to the rapid expansion of TopCafe
Small local grocers was the leading distribution channel within coffee in 2025 due to affordability and widespread access
Supermarkets was the most dynamic distribution channel in 2025 as expansion and assortment depth strengthened relevance
Tea in Nigeria
KEY DATA FINDINGS
Tea gains momentum as affordability, wellness appeal, and entrenched consumption habits support demand
Retail value sales of tea increased in 2025 as moderated inflation supported improved affordability
Black tea bags was the most dynamic category in 2025 due to its essential role and affordability
Retail value sales of tea are expected to rise over the forecast period as population growth and improved spending power lift demand
Innovation in flavours, formats, and instant tea will expand consumer engagement
Health-focused and natural formulations will strengthen appeal in a market shaped by wellness trends
Lipton Teas & Infusions Plant Based Ltd was the leading company in 2025 in tea due to strong brand equity and national distribution
Richmond and Top Tea were the most dynamic companies overall in 2025 due to affordability and flavour-driven differentiation
Small local grocers was the leading distribution channel within tea in 2025 due to sachet popularity and neighbourhood convenience
Supermarkets was the most dynamic distribution channel in 2025 as expansion and assortment depth enhanced appeal
Other Hot Drinks in Nigeria
KEY DATA FINDINGS
Other hot drinks stabilise as consumers adapt to high prices and seek affordable nutrition
Retail value sales of other hot drinks increase in 2025 as consumers adjust behaviour and shift to affordable formats
Chocolate-based flavoured powder drinks is the most dynamic category in 2025 as affordability and novelty attract consumers
Retail value sales of other hot drinks are expected to rise as population growth and economic stabilisation support demand
Innovation will focus on combination products, flavour expansion, and increased use of local cocoa sourcing
Nutrition-focused propositions will strengthen as health-conscious consumers seek added-value benefits
Nestlé Nigeria Plc leads other hot drinks in 2025 due to Milo’s strong brand equity, visibility and distribution reach
Promasidor Nigeria Ltd is the most dynamic company in 2025 as Twisco expands rapidly across price-sensitive households
Small local grocers remain the leading distribution channel due to accessibility and sachet-focused purchasing habits
Supermarkets are the most dynamic channel in 2025 as expanding chains improve access, range, and affordability
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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This report originates from Passport, our Hot Drinks research and analysis database.
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