Globally, beer still reigns in the hearts and minds of consumers. Some describe it as "cheap, approachable, and readily available", "a warm hug that other drinks just can't match" or "the perfect drink for every mood".1
Sentiments among consumers in Nigeria follow this pattern as the country ranks as the 18th country in the world that consumes the most beer, second only to South Africa in Africa. Nigeria has an annual beer consumption of approximately 2 million tons. However, demand for beer is gradually losing market share in Nigeria.2 Though an average yearly consumption of 2 million tons sounds impressive, this average is significantly (20%) lower than the 2.5 million tons average of the early 2010s. In 2022, beer consumption in Nigeria was at a low of 1.8 million tons3 and is projected to be even weaker in 2024.4 Demand appears to be shifting to the spirits market as consumer preference `for spirits has improved. Also, we see giants like Guinness Nigeria Plc acquiring more rights to distribute different spirits brands in the Nigerian market. The figure below shows the pattern of beer consumption between 2012 – 2022.
Figure 3a: Nigeria's Beer Consumption Levels
Source: FAOSTAT
Despite losing some of its market share to Spirits, beer still is the dominant alcohol type in Nigeria. A survey of 1229 alcohol consumers across six states (Lagos, Abuja, Port Harcourt, Anambra, and Kaduna) in the first quarter of 2024 found 76% of alcohol consumers drinking more beer in a week relative to other alcoholic beverage types, signaling its dominance in the Nigerian market. Regarding value, beer's market share is approximately 55% followed by Spirits (30%) and Wine (15%).5
How Much is Beer in Nigeria, and How Much Do Nigerians Spend on It?
The price of beer in Nigeria is wide-ranging; from as low as ₦1826 ($0.12)7 for a 33-cl can of Gulder beer to as high as ₦10008 ($0.65) for a 33-cl Hunter's Dry cider. For a large market such as Nigeria, an argument is often made for lower prices to attract new consumers. However, this may not necessarily holdfor the beer market in Nigeria. Yes, cheaper prices can attract a category of customers but price is not enough to hold first place in the hearts of consumers. A brand must have a good product and great visibility in the market.
Most consumers have a palate that guides their brand choice. In the survey, the Hero brand emerged as the most preferred brand among beer consumers, topping with about 20% followed by Heineken with 15%. The Hero brand sells for ₦550 ($0.32) for the 60cl bottle while the Heineken 33cl bottle sells for between ₦700 ($0.45) and ₦800 ($0.52). Gulder beer, though cheap did not place in the top 10. Moreover, the top breweries have multiple brands priced to attract different customer categories. As a result, even in the low-priced market, a product can face stiff competition.
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Footnotes
1. https://www.quora.com/Why-is-beer-more-popular-than-other-alcohols
https://www.fao.org/faostat/en/#data/FBSH>
https://www.fao.org/faostat/en/#data/FBSH
https://www.reportlinker.com/clp/country/87/726344
Nigeria's Alcoholic Beverages Industry | Asoko Insight
https://www.thedrinkshop.com.ng/product/gulder-can33cl/
Naira to US dollar conversions are based on conversion rates in December 2024 on Google Finance.
https://www.thedrinkshop.com.ng/product/hunters-dry-nrb33cl/
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