Energy drink is a fast-growing soft drinks segment in Africa, reflecting the growing demand for functional beverages. Nigeria is a rapidly growing energy drinks market in Africa projected to grow at 14.14% CAGR above the continent's average of 10%. The traditional energy drink type is the most common in Nigeria but benefits from the wellness wave associated with other functional drinks such as herbal teas, sports, and fortified drinks. Though traditional energy drinks contain several grams of sugar and other unhealthy ingredients, many Nigerians associate them with healthiness. In the study, 20% of consumers were influenced by their perception of healthiness when selecting different energy drink brands. Possibly, the beneficial effects on performance outweigh the downsides for many consumers.
Young people are the main target market for energy drinks in Nigeria. In the survey, participants who often consumed energy drinks were below 50 years old. Further, 71% of energy drink consumers were 30 years or below. Several reasons account for this: 19.2% drink it for performance during sports, 43.5% drink it for alertness while studying for exams, and 16.4% take it at parties. 35% of consumers take it for no special reason, just a soft drink option.
How much is Energy Drink in Nigeria, and how much do Nigerians spend on Energy Drinks?
A bottle or can of Energy Drink in Nigeria costs between ₦415 and ₦1800 depending on the brand and packing size. The top brand, Fearless, is also priced at the low end at ₦415. Price is a key competitive strategy the Fearless brand uses to maintain its top position. The brand is one of the earliest brands in the market and has maintained its top position amid an influx of many brands. It is top of the mind for most consumers and it's affordable. Pricing in the energy drink market is a competitive tool just as in the soft drink market. Several players adopt the "more for less" model. Many low-priced brands offer high volumes of 50 cl to 60 cl for about ₦ 500 or less.
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