Alcohol consumption remains an important part of Nigerian culture, as over 25% of the adult population (aged 15+ years) drink some alcohol. Though slightly lower than the African average of 29.2%, the average drinker in Nigeria drinks more alcohol than the average drinker in Africa. Nigeria has an average per capita consumption (APC) of 16.1 liters annually, compared to 15.5 liters for Africa. Every day, millions of Naira are spent on alcohol, with the average drinker spending over ₦ 5,000 on alcohol each week, and in a month, between 9% – 31% of their disposable incomes are spent on alcohol. The proportion of income spent on alcohol also tends to vary among different income groups. Lower-income earners spend relatively higher proportions of their income on alcohol compared to high-income earners.
What Types of Alcohol Are Nigerians Spending On?
Across the categories of alcohol, spending on wine is higher than on spirits and beer. Nigerian wine lovers spend an average of ₦ 11,208 weekly on wine, while an average of ₦ 7,614 weekly is spent on spirits. Spending on beer is the lowest, most likely because it’s the cheapest among the 3 categories. Another contributing factor is the apparent shift in consumer preferences toward spirits, driven by their higher alcohol content and greater versatility in consumption. In terms of consumption, however, the reverse is true. Beer is still the leading category of alcohol consumed.
● Wine: Nigerian wine lovers spend an average of ₦ 11,208 weekly on wine.
● Spirits: An average of ₦ 7,614 weekly is spent on Spirits.
● Beer: Spend on beer is the lowest, arguably because it is the cheapest among the 3 categories.
What Brands Are They Spending the Most On?
A wide array of alcoholic brands in the Nigerian market caters to different flavor profiles and pockets. A survey of 1229 consumers across six (6) States indicates that consumers are not just aware of these brands but are actively exploring these options to find the best fit. From wine to beer to Spirits, consumers highlighted several brands as their favorites in the survey. Notwithstanding the variety of options in the market, a few key players control the alcohol market in Nigeria, and this was evident in the consumer responses.
The Hero Beer from International Breweries Plc topped the list of favorites, with 20% of consumers selecting it as their preferred brand. In the Spirits market, the favorite spirit type is the bitters. Bitters, with their infused local ingredients and herbs, offer more than just a great taste to consumers. Many perceive bitters to be healthier options because of the herbal component. About 30% of consumers cited the healthy ingredients as their primary reason for choosing various bitters brands. Vodka, Gin, and Whiskey follow this. Some top brands capturing the minds of consumers include Action Bitters, Orijin Bitters, Jameson (Whiskey), Smirnoff (Vodka), and Chelsea (Gin). In the alcoholic wine section, Four Cousins wine is the most dominant, controlling about 24% of the market.
Where do they spend the Most?
Interviews with selected alcohol lovers in Nigeria indicate that there are no specific times for alcohol consumption. While some drink to relax and wind down the day, others drink during the day as they work from home. Generally, however, most drinkers take it at night, especially when spending time with friends and loved ones in pubs, restaurants, or at home. On average, 63% of drinkers purchase alcohol from on-trade sites such as pubs or restaurants. The other 37% of drinkers buy from off-trade venues such as supermarkets, malls, and online shops, indicating significant home consumption. Though there is higher traffic to on-trade venues, consumers spend about 40% more on average when they buy for home consumption (off-trade venues) than when they buy from restaurants or pubs. This could be a question of comparatively lower prices at off-trade venues or several consumers for each purchase driving higher spending patterns.
If you found this analysis insightful, you may also enjoy exploring our other Firmus Advisory deep-dive market reports:
• The Wine Market in Nigeria uncovers consumer trends and growth opportunities in the country’s expanding wine sector.
• The Spirit Market in Nigeria to get a closer look at demand drivers and competitive dynamics shaping this industry.
• The Beer Market in Nigeria to understand market shifts, local preferences, and new openings for investors.
• The Energy Drink Market in Nigeria to explore how lifestyle changes and youth culture are fueling rapid growth.
• The Soft Drink Market in Nigeria to see what’s behind the steady demand and evolving product innovations.
Each report offers data-driven insights to help you make smarter business and investment decisions in Nigeria’s beverage sector.
About Firmus Advisory Nigeria Limited
Firmus Advisory Nigeria offers a comprehensive range of market research services including market and sector insights as well as customer satisfaction studies. Employing the full set of market research tools (depending on a business’ particular need), we unearth insights that will help you understand a business situation and make insightful and profitable decisions. Over the years, we have provided research services to several local and international companies and have obtained optimal experiences in the areas of customer experience surveys, market insights and brand tracking studies across multiple sectors.
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