Soft drinks stabilise as inflation moderates but affordability continues to define consumer behaviour
Soft drinks in Nigeria recorded improved volume growth in 2025 as inflationary pressure eased and average unit prices rose at a significantly slower rate than in 2024. A more stable exchange rate helped moderate raw material cost escalation, supporting stronger supply continuity and enabling manufacturers to avoid the extreme price jumps seen the previous year. Despite this relative easing, purchasing power remained severely constrained for most households, and affordability continued to shape consumption patterns across categories.
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Overview:
Understand the latest market trends and future growth opportunities for the Soft 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:
- Bottled Water
- Carbonates
- Concentrates
- Juice
- RTD Coffee
- RTD Tea
- Energy Drinks
- Sports Drinks
- Asian Speciality Drinks
If you're in the Soft 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 Soft 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 Soft Drinks in Nigeria?
- To what extent are health considerations impacting consumption of Soft Drinks in Nigeria?
- How are changing social attitudes and legislation (eg sugar tax) reshaping demand and consumption?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Soft Drinks in Nigeria?
- Which are the leading brands in Soft Drinks in Nigeria?
- What potential exists for multinational or domestic soft drinks companies to expand in Nigeria?
- How are products distributed in Soft Drinks in Nigeria?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How have home seclusion and social distancing measures following COVID-19 impacted sales of Soft Drinks?
- How are sustainability issues, such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, impacting the soft drinks industry?
- Where is future growth expected to be most dynamic?
Soft Drinks in Nigeria
Soft drinks stabilise as inflation moderates but affordability continues to define consumer behaviour
KEY DATA FINDINGS
Affordability pressures reshape consumption but functional needs continue to influence category preference
Manufacturers prioritise pack-size optimisation and distribution reach over high-risk innovation
Distribution-led competition intensifies as companies target underserved markets
Retail volume sales of soft drinks are set to rise over the forecast period
Improving macroeconomic stability will stimulate innovation and expand category breadth
Digitalisation will transform distribution efficiency and deepen reach into fragmented retail
Coca-Cola Nigeria remains the leading company in 2025 due to strong brand equity and widespread distribution
Regional value brands drive dynamism through aggressive pricing and expanded market reach
Small local grocers remain the leading distribution channel for soft drinks in 2025
Supermarkets emerge as the most dynamic channel despite economic constraints
FOODSERVICE VS RETAIL SPLIT
Fountain sales in Nigeria
COUNTRY REPORTS DISCLAIMER
Bottled Water in Nigeria
KEY DATA FINDINGS
Bottled water maintains strong growth as an essential good despite sustained price pressures
Retail volume sales of bottled water increase in 2025 as essentiality and climate needs override affordability constraints
Still purified bottled water is the most dynamic category as consumers prioritise basic daily hydration
Retail volume sales of bottled water are expected to rise over the forecast period overall
Innovation in niche, flavoured, and functional waters supports premium development
Sustainability and added health benefits become key differentiators for premium bottled water
Nestlé Nigeria is the leading company in 2025 in bottled water
Seven-Up Bottling Co is the most dynamic company overall in 2025
Small local grocers are the leading distribution channel within bottled water in 2025
Supermarkets are the most dynamic distribution channel in 2025, with e-commerce gradually expanding and on-trade lagging
Carbonates in Nigeria
KEY DATA FINDINGS
Affordability, competition, and energy-seeking behaviours underpin strong category momentum in 2025
Retail volume sales of carbonates increased in 2025
Cola carbonates is the most dynamic category in 2025
Retail volume sales of carbonates are expected to rise over the forecast period
New packaging formats, flavour development, and digitalised distribution will shape innovation
Sugar taxation and growing health awareness may reshape category dynamics
Coca-Cola Nigeria is the leading company in 2025 in carbonates
Mamuda Beverages Nigeria Ltd was the most dynamic company overall in 2025
Small local grocers were the leading distribution channel in carbonates in 2025
Supermarkets were the most dynamic distribution channel in 2025
Concentrates in Nigeria
KEY DATA FINDINGS
Concentrates maintains a small but resilient role as an affordable alternative to juice
Retail volume sales of concentrates increase modestly in 2025 as affordability supports demand
Powder concentrates is the most dynamic category in 2025 thanks to low cost and portability
Retail volume sales of concentrates are expected to rise over the forecast period overall
Innovation, flavour diversification and higher quality concepts can unlock new demand
Health and wellness positioning strengthens the long-term relevance of concentrates
FMCG Distribution Ltd is the leading company in 2025 in concentrates
Foster Clark Products Ltd is the most dynamic company overall in 2025
Small local grocers are the leading distribution channel within concentrates in 2025
Supermarkets is the most dynamic distribution channel in 2025 as modern retail gains relevance
Concentrates Conversions
Juice in Nigeria
KEY DATA FINDINGS
Juice stabilises in 2025 as consumers adapt to high prices and prioritise occasional, affordable consumption
Retail volume sales of juice increase in 2025 as consumers downtrade to smaller packs and more affordable brands
Juice drinks are the most dynamic category in 2025 as the most affordable, child-focused option
Retail volume sales of juice are expected to rise over the forecast period as incomes recover and the child population expands
Local sourcing, new formats, and niche segments shape innovation and technological progress
Health and wellness trends encourage premium, locally sourced juice propositions
CHI Ltd is the leading company in 2025 in juice
Coca-Cola Nigeria is the most dynamic company overall in 2025
Small local grocers are the leading distribution channel within juice in 2025
Supermarkets are the most dynamic distribution channel in 2025, supported by e-commerce and growing out-of-home occasions
RTD Coffee in Nigeria
KEY DATA FINDINGS
Rising interest in convenient, energy-boosting beverages drives strong growth despite economic pressures
A developing coffee culture and preference for creamy formats underpin strong volume growth
Lack of segmentation keeps 3-in-1 creamy RTD coffee dominant as innovation remains limited
Modern lifestyles, rising coffee awareness and demand for convenient energy support strong forecast growth
Innovation centred on flavour variety, café-style formats and functional ingredients will broaden appeal
Health-oriented positioning offers opportunity as consumers seek alternatives to sugary drinks
Nestlé Nigeria maintains overwhelming leadership through brand equity, distribution strength and alignment with local taste preferences
Minimal competitive activity leaves Nestlé as the sole meaningful contributor to category expansion
Supermarkets dominate distribution as early adopters gravitate toward modern retail environments
Independent small grocers increase share as product awareness grows and convenience becomes more critical
RTD Tea in Nigeria
KEY DATA FINDINGS
RTD tea faces another difficult year as economic pressures limit discretionary purchases
Weak consumer purchasing power shifts demand toward categories perceived to offer stronger functional value than RTD tea
Absence of reduced-sugar options reinforces the dominance of sweet, flavoured RTD tea aimed at younger consumers
Growing interest in healthier, novel beverages positions RTD tea for gradual recovery as economic conditions improve
Innovation centred on flavour diversification, functional benefits and carbonation is set to stimulate category visibility
Strengthening the health and natural positioning will be essential as consumers seek alternatives to sugary beverages
Chi Ltd maintains leadership through strong brand recognition, product extensions and widespread distribution
Cway Food & Beverages expands rapidly through PET-based innovation and refreshed product launches
Small local grocers retain dominance as affordability pressures keep consumers focused on convenient, low-cost purchasing points
Supermarkets gain momentum as modern retail expands and consumers seek variety and brand discovery
Energy Drinks in Nigeria
KEY DATA FINDINGS
Energy drinks growth slows as health concerns rise but the category remains highly visible and competitive
Retail volume sales of energy drinks increase in 2025 but growth slows as consumers trade across categories
Regular energy drinks remains the key growth driver while affordable mass brands outperform premium offerings
Retail volume sales of energy drinks are expected to rise over the forecast period but face health and saturation headwinds
Flavour innovation, pack size segmentation and functional positioning support future category development
Health concerns, potential regulation and demand for ‘natural’ formulations shape future innovation
FMCG Distribution Ltd is the leading company in 2025 in energy drinks through Lucozade
Rite Foods Ltd, Coca-Cola Nigeria and Mamuda Beverages Nigeria are among the most dynamic competitors in 2025
Small local grocers are the leading distribution channel within energy drinks in 2025
Supermarkets is the most dynamic distribution channel in 2025 as modern retail and e-commerce gain relevance
Sports Drinks in Nigeria
KEY DATA FINDINGS
Sports drinks remains niche but gains visibility as exercise and wellness culture expand
Retail volume sales of sports drinks increase in 2025 but remain constrained by weak disposable income
Regular sports drinks is the most dynamic category as the market remains at an early stage of development
Retail volume sales of sports drinks are expected to rise over the forecast period overall
Product innovation and flavour diversification support category expansion among young, urban consumers
Health concerns and scrutiny of energy drinks support the positioning of sports drinks as a safer hydration option
FMCG Distribution Ltd is the leading company in 2025 in sports drinks through Lucozade Sport
FMCG Distribution Ltd is also the most dynamic company overall in 2025 as Lucozade Sport leverages brand equity and value positioning
Small local grocers are the leading distribution channel within sports drinks in 2025
Supermarkets are the most dynamic distribution channel in 2025 as modern retail gains traction
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Soft Drinks
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- Carbonated Natural Mineral Bottled Water
- Carbonated Spring Bottled Water
- Carbonated Purified Bottled Water
-
- Still Flavoured Bottled Water
- Sparkling Flavoured Bottled Water
- Functional Bottled Water
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- Still Natural Mineral Bottled Water
- Still Spring Bottled Water
- Still Purified Bottled Water
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- Regular Carbonates
- Reduced Sugar Carbonates
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- Regular Cola Carbonates
- Reduced Sugar Cola Carbonates
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- Regular Non-Cola Carbonates
- Reduced Sugar Non-Cola Carbonates
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- Regular Lemonade/Lime
- Reduced Sugar Lemonade/Lime
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- Regular Tonic Water/Mixers/Other Bitters
- Reduced Sugar Tonic Water/Mixers/Other Bitters
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- Regular Orange Carbonates
- Reduced Sugar Orange Carbonates
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- Regular Other Non-Cola Carbonates
- Reduced Sugar Other Non-Cola Carbonates
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- Liquid Concentrates
- Powder Concentrates
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- Not from Concentrate 100% Juice
- Reconstituted 100% Juice
- Coconut and Other Plant Waters
- Juice Drinks (up to 24% Juice)
- Nectars
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- RTD Coffee
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- Carbonated RTD Tea and Kombucha
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- Regular Still RTD Tea
- Reduced Sugar Still RTD Tea
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- Regular Energy Drinks
- Reduced Sugar Energy Drinks
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- Regular Sports Drinks
- Reduced Sugar Sports Drinks
- Asian Speciality Drinks
Soft Drinks
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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This report originates from Passport, our Soft Drinks research and analysis database.
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