Nigeria’s spirit market is worth $2bn and growing at 6-per cent on average per year. That was the assessment of a recently published report by the United States Department of Agriculture (USDA) in their Global Agricultural Information Network (GAIN).
The GAIN report notes that 75% of the spirits consumed in Nigeria are locally made, while imported spirits account for $500m of the total value of spirits consumed.
The report, however, said that imported spirits of various classifications continue to gain acceptance among the growing young and educated middle-class.
According to the report, Nigeria’s large population of 160 million people provides a large market for alcoholic beverages valued at more than $6.5bn. It notes that while spirits constitutes about 30% of the market for alcoholic beverages, beer still leads with 55% of the market, with wine making up the remaining 15%.
Although local spirits constitutes 75% of the spirits consumed, the report notes that the quality does not meet the standards of the increasing high and middle-class consumers preferred premium brands.
“Market opportunity is here for those prepared to take advantage of the growing consumption of premium brands,” the report said.
According to the report authors, Marcela Rondon and Uche Nzeka, Nigeria’s middle-class and the emerging young consumers are adopting consumption patterns similar to Western countries and are increasingly developing preferences for premium imported brands.
The country’s increasing urbanization and the rising number of female alcohol drinkers, especially in large cities, such as Lagos, Port Harcourt and Abuja, is also resulting in a remarkable switch from consumption of relatively inexpensive local spirits to higher priced imported ones,” they noted.
The report points out that the European Union (EU) and South Africa are the leading suppliers to the market, however, other countries such as Russia, Mexico, United States, Brazil, Canada, among others also supply to the market (traditional open markets, grocery stores and super market shelves).
According to the report, the leading companies in the market are Diageo with 25% of the rum segment, Pernod Ricard with 26% and 41% of the Vodka and Brandy market respectively; Davide Campari-Milano S.P.A has 10-15% of the liqueurs category; LVMH leads in the super-premium category (especially Cognac) by average 27%
The report listed major players and leading brands in Nigeria’s spirits market to include Diageo (UK) Johnnie Walker, Smirnoff vodka, Johnnie Walker and J&B whiskey, Gordon’s and Gilbey’s gin, and Baileys liqueurs, Crown Royal, Buchanan’s, Windsor and Bushmills whiskies, Cîroc and Ketel One vodkas, Baileys, Captain Morgan, Jose Cuervo, Tanqueray, others.
Davide Campari-Milano S.p.A (Italy): Campari, SKYY Vodka, Wild Turkey, Cynar, Aperol, CampariSoda, Glen Grant, Ouzo 12, Zedda Piras, Dreher, Old Eight, Drury’s, Mondoro, Riccadonna, Sella & Mosca, Teruzzi & Puthod, Crodino, Lemonsoda, Cinzano, Campari Mixx, Aperol Soda, Biancosarti, Barbieri, Enrico Serafino, Oransoda e Pelmosoda, and Cabo Wabo. Aperol, Cabo Wabo, GlenGrant, Ouzo 12, Mondoro, Riccadonna and Liebfraumilch, etc.
Pernod Ricard (France): Whiskeys- Aberlour Scotch Whisky, Ballantine’s Scotch Whisky, Chivas Regal Scotch Whisky, Jameson Irish Whiskey, Longmorn Scotch Whisky, Midleton Irish Whiskey, Paddy Irish Whiskey, Powers Irish Whiskey, Redbreast Irish Whiskey, Scapa Single Malt Scotch Whisky Strathisla Scotch Whisky, The Glenlivet Single Malt Scotch Whisky, Tormore Single Malt Scotch Whisky.