Hot drinks in 2024: The big picture
Hot drinks in Nigeria faced retail volume decline in 2024 due to the negative impact of inflationary economic conditions on consumers’ purchasing power. Consumption of hot drinks reduced in line with rising prices and further pressure on household budgets in Nigeria.
2024 key trends
Falling consumption was visible across all hot drinks categories, except for tea bags black, which saw a marginal increase over 2024. Black tea bags are the cheapest option in hot drinks and offer Nigerians an affordable alternative to coffee and other hot drinks (malt-based and chocolate flavoured drinks).
Competitive landscape
Nestlé Nigeria Plc maintains a strong lead in retail value share of hot drinks in 2024, due to its ownership of leading brands in coffee and other hot drinks. The company benefits from its longstanding presence in Nigeria, thus enabling it to build a strong distribution network.
Retailing developments
Small local grocers dominate the distribution of hot drinks in Nigeria and have maintained retail value share despite the growing preference for modern grocery retailers. Given the weak economy, consumers are less able to purchase products in bulk and so rely on small grocers in local neighbourhoods for their daily needs.
Foodservice vs retail split
Off-trade outlets dominate hot drinks volume sales in Nigeria. Many consumers buy these drinks for consumption at home especially to complement breakfast and/or evening meals.
What next for hot drinks?
Hot drinks will see strong growth in volume and value terms over the forecast period. A strong urban population growth is expected to increase the consumer base for hot drinks products, which are considered important complements to daily meals.
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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 in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
Coffee in Nigeria
KEY DATA FINDINGS
Inflationary conditions lead to volume decline
Instant coffee mixes is the preferred choice among locals
Competitive activity is limited by weak economic conditions
Economic improvement to help drive growth
Growing consumer awareness through on-trade to boost volumes
Instant coffee mixes to drive category performance
Tea in Nigeria
KEY DATA FINDINGS
Tea consumption declines marginally despite fragile economy
Black tea performs best due to affordable price
Top Tea and Richmond Tea achieve strong growth
Population growth and economic recovery to fuel growth
Black tea is instrumental to category performance
Herbal/traditional medicinal teas and green teas benefit from perceived health benefits
Other Hot Drinks in Nigeria
KEY DATA FINDINGS
Other hot drinks impacted by weak economic conditions
Chocolate-based flavoured powder drinks perform well due to lower price
Milo maintains strong lead but faces growing competition
Solid growth potential amid economic recovery and population growth
Chocolate-based flavoured powder drinks to perform best
Malt-based hot drinks to recover well in line with economic improvement
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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Why buy this report?
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- Track key industry trends, opportunities and threats
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This report originates from Passport, our Hot Drinks research and analysis database.
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